With these articles, thanks to the All-In-One screener of GuruFocus I give a selection of stocks that are trading with a very low P/E(ttm) ratio and that are catching the attention of multiple Gurus.
Twenty-First Century Fox Inc (FOX)
The company is a diversified media and entertainment company. Its segments includes Cable Network Programming, Television, Filmed Entertainment and Direct Broadcast Satellite Television. It has a market cap of $66.91 billion.
FOX is trading at about $33 with a trailing 12-month P/E multiple of 7.67, a forward P/E of 16.00 and the stock has an estimated five-year annual rose of 156%. During the last 52 weeks the stock has been as high as $37.83 and as low as $30.11.
The DCF model gives a fair value of $62.99 that put the stock as undervalued and with a margin of safety of 48% at current prices. The Peter Lynch earnings line gives almost the same fair value ($64.0).
During the last 12 months revenue grew by 7.20%, EBITDA by 225% and EPS by 158%.
The company is currently held by 14 gurus and the main holder is Jeff Ubben (Trades, Portfolio) (who holds 1.53% of shares outstanding that is the 5.70% of his total assets), followed by Donald Yacktman (Trades, Portfolio) (who holds 1.29% of shares outstanding that is the 4.02% of his total assets).
CIT Group Inc (CIT)
The company provides financing, leasing and advisory services principally to middle market companies. The company's competitors include global and domestic commercial banks, regional and community banks, captive finance companies and leasing companies. It has a market cap of $8.27 billion.
CIT is trading at about $48 with a trailing 12-month P/E of 7.97 and a forward P/E of 13.42. During the last five years the stock rose by 35% and has been as high as $50.23 and as low as $43.21 in the last 52 weeks.
The DCF model gives a fair value of $84.67 that put the stock as undervalued and with a margin of safety of 44% at current prices. The Peter Lynch earnings line gives almost the same fair value ($86.0).
During the last 12 months revenue grew by 13.20%, EBITDA by 26.20% and EPS by 90.10%.
The company is currently held by 13 gurus and the main holder is First Pacific Advisors (Trades, Portfolio) (that holds 2.03% of shares outstanding that is the 1.33% of its total assets), followed by Steven Romick (Trades, Portfolio) (who holds 1.90% of shares outstanding that is the 1.46% of his total assets).
American International Group Inc (AIG)
The company is a holding company which, through its subsidiaries, is engaged in insurance and insurance-related activities in the United States and abroad. It has a market cap of $83.44 billion.
AIG is trading at about $63 with a trailing 12-month P/E multiple of 10.75, a forward P/E of 11.07 and the stock has an estimated five-year annual rose of 106%. During the last 12 months the stock has been as high as $63.70 and as low as $48.56.
The DCF model gives a fair value of $86.59 that put the stock as undervalued and with a margin of safety of 27% at current prices. The Peter Lynch earnings line confirms the same fair value ($83.1).
During the last 12 months revenue did not face any change, while EBITDA grew by 21.70% and EPS by 2.10%.
The company is currently held by 35 gurus and the main holder is Fairholme Fund (Trades, Portfolio) (that holds 2.23% of shares outstanding that is the 32.01% of its total assets), followed by Hotchkis & Wiley (that holds 1.51% of shares outstanding that is the 3.85% of his total assets).
Chevron Corp (CVX)
The company manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to U.S. and international subsidiaries. It has a market cap of $188.59 billion.
CVX is trading at about $100 with a trailing 12-month P/E of 10.89, a forward P/E of 16.89 and the stock has an estimated five-year annual rose of 42% .
The stock has been as high as $135.10 and as low as $98.81 in the last 52 weeks.
The DCF model gives a fair value of $107.6 that put the stock as undervalued and with a margin of safety of 8% at current prices. The Peter Lynch earnings line gives an even larger margin of safety, setting the stock’s fair value to $144.5.
During the last 12 months revenue dropped by 12.80%, EBITDA by 9.10% and EPS by 10.90%.
The company is currently held by 25 gurus and the main holder is Dodge & Cox (that holds 0.68% of shares outstanding that is the 1.23% of its total assets), followed by Brian Rogers (Trades, Portfolio) (who holds 0.27% of shares outstanding that is the 1.93% of his total assets).
Capital One Financial Corp (COF)
The company is a diversified financial services company whose banking and non-banking subsidiaries market a variety of financial products and services. It has a market cap of $48.81 billion.
COF is trading at about $89 with a trailing 12-month P/E of 11.59 and a forward P/E of 10.93. During the last five years the stock rose by 108% and during the last year, it has been as high as $89.99 and as low as $72.77.
The DCF model gives a fair value of $79.63 that put the stock as overpriced by 12%, while the Peter Lynch earnings line, with a fair value of $114.8 says the stock is still undervalued at current prices.
During the last 12 months revenue grew by 5.20%. The company has a better growth rate over the last five years, when revenue grew by 4.80%, EBITDA by 22% and EPS by 34%.
The company is currently held by 14 gurus and the main holder is Dodge & Cox (that holds 8.57% of shares outstanding that is the 3.4% of its total assets), followed by James Barrow (Trades, Portfolio) that holds 3.51% of shares outstanding that is the 2.05% of his total assets.)
Summary
All the above stocks are trading at a very low P/E as reported below, and some of them are even undervalued.
| Ticker | 12 months EPS growth rate | Margin of Safety | P/E | n. of Gurus holding |
| FOX | 158.80% | 48% | 7.67 | 14 |
| CIT | 90.10% | 44% | 7.97 | 13 |
| AIG | 2.10% | 27% | 10.75 | 35 |
| CVX | -10.90% | 8% | 10.89 | 25 |
| COF | 34% (5 years) | Overpriced | 11.59 | 14 |
