Francis Chou (Trades, Portfolio), the fund manager of Chou America Mutual Funds, has been managing the Chou Funds in Canada since 1986. The investment process followed in selecting equity investments for the funds is a value-oriented approach to investing. This involves a detailed analysis of the strengths of individual companies, with much less emphasis on short-term market factors.
The following are the stocks Chou holds that are trading with lowest P/E.
China Yuchai International Ltd. (CYD) is trading at about $11 with a trailing 12-month P/E multiple of 4.95 and an estimated forward P/E multiple of 4.31. Over the last 10 years, the stock has risen by 31%, and during the last 52 weeks the price has been as high as $20.96 and as low as $10.70.
The DCF model gives a fair value of $85.4 that puts the stock as undervalued with a margin of safety of 83% at current prices. The Peter Lynch earnings line suggests a smaller margin of safety, giving a fair price of $37.8.
The company produces and provides covering light-duty, medium-duty to heavy-duty diesel engines, engine parts and components, diesel-powered generators, industrial engines, marine engines and natural gas engines to meet the needs across different sectors.
Charles Brandes (Trades, Portfolio) is the largest shareholder among the gurus with 3.72% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.59% and Sarah Ketterer (Trades, Portfolio) with 0.17%.
GlaxoSmithKline PLCÂ (GSK) is trading at about $40 with a trailing 12-month P/E multiple of 6.64 and an estimated forward P/E multiple of 15.87. Over the last 10 years, the stock has dropped by 22%, and during the last 52 weeks the price has been as high as $49.08 and as low as $37.24.
The DCF model gives a fair value of $65.08 that puts the stock as undervalued with a margin of safety of 39% at current prices. The Peter Lynch earnings line suggests a wider margin of safety, giving a fair price of $90.00.
The largest shareholder among the gurus is HOTCHKIS & WILEY with 0.51% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.48%, Charles Brandes (Trades, Portfolio) with 0.19% and PRIMECAP Management (Trades, Portfolio) with 0.18%.
MBIA Inc. (MBI) is trading at about $6 with a trailing 12-month P/E multiple of 8.66 and an estimated forward P/E multiple of 2.44. Over the last 10 years, the stock has dropped by 90%, and during the last 52 weeks the price has been as high as $9.98 and as low as $4.94.
The DCF model gives a fair value of $7.49 that puts the stock as undervalued with a margin of safety of 21% at current prices. The Peter Lynch earnings line suggests a wider margin of safety, giving a fair price of $18.1.
The company operates a financial guarantee insurance business and is a provider of asset management and advisory services business.
Kahn Brothers (Trades, Portfolio) is the largest shareholder among the gurus with 2.93% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 2.9%, George Soros (Trades, Portfolio) with 1.94% and Chou, who holds 0.71%.
Goldman Sachs Group Inc. (GS) is trading at about $178 with a trailing 12-month P/E multiple of 11.64 and an estimated forward P/E multiple of 9.57. Over the last 10 years, the stock has risen by 39%, and during the last 52 weeks the price has been as high as $218.77 and as low as $167.49.
The DCF model puts the stock as overpriced by 39%. The Peter Lynch earnings line suggests a wider margin of safety, giving a fair price of $240.
The largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 2.57% of outstanding shares, followed by Dodge & Cox with 2.54%, Bill Nygren (Trades, Portfolio) with 0.41% and Richard Pzena (Trades, Portfolio) with 0.36%.
Citigroup Inc. (C) is trading at about $52 with a trailing 12-month P/E multiple of 11.68 and an estimated forward P/E multiple of 8.94. Over the last 10 years, the stock has dropped by 89%, and during the last 52 weeks the price has been as high as $60.95 and as low as $46.60.
The DCF model puts the stock as overpriced by 8%. The Peter Lynch earnings line suggests a wider margin of safety, giving a fair price of $63.00.
The company is a financial services holding company, whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.
James Barrow (Trades, Portfolio) is the largest shareholder among the gurus with 0.73% of outstanding shares, followed by HOTCHKIS & WILEY with 0.55%, Ken Fisher (Trades, Portfolio) with 0.4% and First Pacific Advisors (Trades, Portfolio) with 0.37%.
Ryanair Holdings PLCÂ (RYAAY) is trading at about $86 with a trailing 12-month P/E multiple of 14.01 and an estimated forward P/E multiple of 17.27. Over the last 10 years, the stock has risen by 192%, and during the last 52 weeks the price has been as high as $43.44 and as low as $32.18.
The DCF model puts the stock as overpriced by 31%. The Peter Lynch earnings line suggests a smaller margin of safety, giving a fair price of $76.6.
The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 1.23% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio) with 0.81%, Manning & Napier Advisors with 0.45% and Causeway International Value (Trades, Portfolio) with 0.2%.
Berkshire Hathaway Inc. (BRK.A) is trading at $197,640 with a trailing 12-month P/E multiple of 14.21 and an estimated forward P/E multiple of 13.97. Over the last 10 years, the stock has risen by 123%, and during the last 52 weeks the price has been as high as $229,000 and as low as $190,007.
The DCF model puts the stock as overpriced by 9%. The Peter Lynch earnings line suggests a smaller margin of safety, giving a fair price of $185,000.
The company is a holding company owning subsidiaries engaged in a number of diverse business activities, including insurance and reinsurance, freight rail transportation, utilities and energy, finance, manufacturing, service and retailing.
Ruane Cunniff (Trades, Portfolio) is largest shareholder among the gurus with 0.57% of outstanding shares, followed by Tom Russo (Trades, Portfolio) with 0.31%, Chris Davis (Trades, Portfolio) with 0.29% and Pioneer Investments (Trades, Portfolio) with 0.25%.
Sanofi SAÂ (SNY) is trading at about $43 with a trailing 12-month P/E multiple of 21.72 and an estimated forward P/E multiple of 13.91. Over the last 10 years, the stock has dropped by 6%, and during the last 52 weeks the price has been as high as $54.98 and as low as $41.13.
The DCF model puts the stock as overpriced by 75%. The Peter Lynch earnings line suggests a bigger margin of safety, giving a fair price of $33.2.
The largest shareholder among the gurus is Dodge & Cox with 1.9% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 1.11%, Ken Fisher (Trades, Portfolio) with 0.51% and HOTCHKIS & WILEY with 0.34%.
Nokia Oyj (NOK) is trading at about $7 with a trailing 12-month P/E multiple of 26.06 and an estimated forward P/E multiple of 15.67. Over the last 10 years, the stock has dropped by 61%, and during the last 52 weeks the price has been as high as $8.37 and as low as $5.71.
The company is a mobile communications company. The company has three businesses in Networks, HERE, and Technologies, as well as four business segments: mobile Broadband and Global Services within Networks, HERE, and Technologies.
Jim Simons (Trades, Portfolio) is the largest shareholder among the gurus with 0.42% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 0.2%.
