Ken Fisher (Trades, Portfolio) is the CEO and CIO of Fisher Investments. The investment philosophy at the firm is based on the idea that supply and demand of securities is the sole determinate of their pricing. Furthermore, they believe that all widely known information has already been priced into the market. The following are companies in the firm's various portfolios that are worth considering, since they are trading with a wide margin of safety according to the DCF calculator.
Credicorp Ltd. (BAP)
Credicorp Ltd. is trading at about $107 with a low trailing 12-month P/E multiple of 9.28 and an estimated forward P/E multiple of 7.94. Over the last 10 years, the stock has risen by 282%, and during the past year, the price has been as high as $170.85 and as low as $81.78.
The DCF model gives a fair value of $264.4 that puts the stock as undervalued with a margin of safety of 59%. The Peter Lynch earnings line gives a smaller margin of safety, estimating a fair price of $168.4.
The company provides financial and health services and products mainly throughout Peru and in certain other countries. During the third quarter, it reported net income slightly increased by 0.5% quarter over quarter and 7.1% year over year.
Fisher is the company's largest shareholder with a 1.42% stake. Jim Simons (Trades, Portfolio) is second with 0.48%, followed by Frank Sands (Trades, Portfolio) with 0.17%.
Dril-Quip Inc. (DRQ)
Dril-Quip Inc. is trading at about $63.28 with a trailing 12-month P/E multiple of 12.09 and an estimated forward P/E multiple of 12.00. Over the last 10 years, the stock has risen by 134%, and during the past year, the price has been as high as $81.78 and as low as $53.37.
The DCF model gives a fair value of $148.32 that puts the stock as undervalued with a margin of safety of 57%. The Peter Lynch earnings line suggests a smaller margin of safety, with a fair price of $78.8.
The company designs, manufactures, sells and services engineered offshore drilling and production equipment that are used in deep water, harsh environment and severe service applications. The third quarter 2015 revenues fell below forecasts, but gross margins exceeded expectations and resulted in a diluted EPS at the upper range of the company's guidance.
Fisher is largest shareholder of the company among the gurus with 0.98% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.4% and Steven Cohen (Trades, Portfolio) with 0.25%.
Apple Inc. (AAPL)
Apple Inc. is trading at about $117.34 with a trailing 12-month P/E multiple of 12.74 and an estimated forward P/E multiple of 11.75. Over the last 10 years, the stock has risen by 1044%, and during the past year, the price has been as high as $134.54 and as low as $92.00.
The DCF model gives a fair value of $261.91 that puts the stock as undervalued with a margin of safety of 55% at current prices. The Peter Lynch earnings line gives a smaller margin of safety with a fair price of $133.9.
The company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, accessories, networking solutions, and third-party digital content and applications. During the third quarter, revenue grew 33% year over year, while EPS grew 45%.
The company largest shareholder among the gurus is Carl Icahn (Trades, Portfolio) with 0.95% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 0.2% and Fisher with 0.2%.
International Business Machines Corp. (IBM)
IBM is trading at about $141.28 with a trailing 12-month P/E multiple of 9.78 and an estimated forward P/E multiple of 9.27. Over the last 10 years, the stock has risen by 60%, and during the past year, the price has been as high as $176.30 and as low as $7.31.
The DCF model gives a fair value of $288.66 that puts the stock as undervalued with a margin of safety of 51% at current prices. The Peter Lynch earnings line suggests a smaller margin of safety with a fair price of $222.0.
For the third quarter, it reported a decline of 9% for operating (non-GAAP) diluted earnings from continuing operations.
Warren Buffett (Trades, Portfolio) holds 8.35% of outstanding shares and is the main guru shareholder of the company. Jeremy Grantham (Trades, Portfolio) has a 0.28% stake, while T Rowe Price Equity Income Fund (Trades, Portfolio) has a 0.15% stake.
Oceaneering International Inc. (OII)
Oceaneering International is trading at about $43.4 with a low trailing 12-month P/E multiple of 14.20 and an estimated forward P/E multiple of 19.76. Over the last 10 years, the stock has risen by 229%, and during the past year, the price has been as high as $66.25 and as low as $37.00.
The DCF model gives a fair value of $86.83 that puts the stock as undervalued with a margin of safety of 50% at current prices. The Peter Lynch earnings line gives a smaller margin of safety, with a fair price for the stock of $49.2.
The company is an oilfield provider of engineered services and products to the offshore oil and gas industry with a focus on deep water applications.
Fisher is the largest shareholder among the gurus with 0.71% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.42% and Joel Greenblatt (Trades, Portfolio) with 0.03%.
Union Pacific Corp. (UNP)
Union Pacific Corp. is trading at about $84.4 with a trailing 12-month P/E multiple of 14.59 and an estimated forward P/E multiple of 13.91. Over the last 10 years, the stock has risen by 346%, and during the past year, the price has been as high as $124.52 and as low as $79.31.
The DCF model gives a fair value of $164.83 that puts the stock as undervalued with a margin of safety of 49% at current prices. The Peter Lynch earnings suggests a smaller margin of safety with a fair price of $87.1.
PRIMECAP Management (Trades, Portfolio) is largest shareholder among the gurus with 0.55% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 0.23% and Pioneer Investments (Trades, Portfolio) with 0.19%.
FMC Technologies Inc. (FTI)
FMC Technologies Inc. is trading at about $33 with a low trailing 12-month P/E multiple of 15.82 and an estimated forward P/E multiple of 22.17. Over the last 10 years, the stock has risen by 239%, and during the past year, the price has been as high as $48.75 and as low as $27.94
The DCF model gives a fair value of $61.49 that puts the stock as undervalued with a margin of safety of 45% at current prices. The Peter Lynch earnings line estimates the company is fairly valued at current prices, giving a fair value of $35.2.
The company is a provider of technology solutions for the energy industry. It designs, manufactures and services technologically sophisticated systems and products, including subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions and marine loading systems for the energy industry. Due to the continued decline in the North American land market, third quarter revenue dropped by 22% year over year.
Frank Sands (Trades, Portfolio) is the largest guru shareholder with 7.71% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 6.14% and Meridian Funds (Trades, Portfolio) with 0.29%. Fisher holds 0.04% of outstanding shares.
Travelers Companies Inc. (TRV)
Travelers Companies is trading at $115.68 with a trailing 12-month P/E multiple of 10.31 and an estimated forward P/E multiple of 11.82. Over the last 10 years, the stock has risen by 155%, and during the past year, the price has been as high as $116.48 and as low as $95.21.
The DCF model gives a fair value of $211.51 that puts the stock as undervalued with a margin of safety of 45% at current prices. The Peter Lynch earnings line suggests a smaller margin of safety with a fair price of $166.9.
The company provides commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals. Third quarter net income and operating income increased 1% and 3% from the prior year quarter.
Pioneer Investments (Trades, Portfolio) is largest shareholder of the company among the gurus with 0.4% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 0.28% and Jeremy Grantham (Trades, Portfolio) with 0.25%.
