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Tiziano Frateschi
Tiziano Frateschi
Articles (1370)  | Author's Website |

6 Cheap Stocks With Growing Book Values

Aflac, Snap-On, Apple with margins of safety and rising BV/S

October 20, 2017 | About:

According to GuruFocus’ All-In-One Screener, the following companies have grown their book values per share (BV/S) over the past decade.

BV/S is calculated as total equity minus preferred stock, divided by shares outstanding (EOP). Theoretically, it is what shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Since the BV/S may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

The BV/S of Aflac Inc. (NYSE:AFL) has grown by 13% over the past 10 years. The price-book (P/B) ratio is 1.6, and the price to tangible book value is 1.6.

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With a market cap of $33.1 billion the company operates in the life insurance industry as a general business holding company.

According to the discounted cash flow (DCF) calculator, the stock is undervalued and is trading with a margin of safety of 15% at $83.76. The stock price has been as high as $84.68 and as low as $66.50 in the past 52 weeks. It is 1.09% below its 52-week high and 25.95% above its 52-week low. The price-earnings (P/E) ratio is 12.65.

Bill Nygren (Trades, Portfolio) is the largest shareholder among the gurus with 1.24% of outstanding shares followed by Andreas Halvorsen (Trades, Portfolio) with 0.54%, John Rogers (Trades, Portfolio) with 0.4%, Jeremy Grantham (Trades, Portfolio) with 0.09% and Jim Simons (Trades, Portfolio) with 0.08%.

The Middleby Corp.'s (NASDAQ:MIDD) BV/S has grown by 25% over the past decade. The P/B ratio is 4.8.

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With a market cap of $6.83 billion the company operates in the diversified industrials industry as it markets foodservice equipment, baking, food preparation and related stuff.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 15% at $118.61. The stock price has been as high as $150.87 and as low as $108.45 in the past 52 weeks. It is 21.38% below its 52-week high and 9.37% above its 52-week low. The P/E ratio is 22.20.

The largest shareholder among the gurus is Ron Baron (Trades, Portfolio) with 2.12% of outstanding shares followed by Columbia Wanger (Trades, Portfolio) with 0.48%, Steven Cohen (Trades, Portfolio) with 0.15% and Simons with 0.13%.

The BV/S of Signature Bank (NASDAQ:SBNY) has grown by 18% over the past 10 years. The P/B ratio is 1.8, and price to tangible book value is 1.8.

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With a market cap of $6.81 billion the company operates in the bank industry in the New York metropolitan area.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 30% at $124.74. The stock price has been as high as $164.23 and as low as $113.53 in the past 52 weeks. It is 24.05% below its 52-week high and 9.87% above its 52-week low. The P/E ratio is 19.93.

Jerome Dodson (Trades, Portfolio) is the largest shareholder among the gurus with 0.38% of outstanding shares followed by Simons with 0.03%, Ray Dalio (Trades, Portfolio) with 0.01% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

McKesson Corp.'s (NYSE:MCK) BV/S has grown by 9% over the past decade.

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With a market cap of $30.74 billion the company operates in the medical distribution industry. It supplies medicines as well as information about health care products.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 73% at $146.21. The stock price has been as high as $169.29 and as low as $114.53 in the past 52 weeks. It is 13.63% below its 52-week high and 27.66% above its 52-week low. The P/E ratio is 6.70.

The largest shareholder among the gurus is Vanguard Health Care Fund (Trades, Portfolio) with 3.81% followed by Richard Pzena (Trades, Portfolio) with 1%, Larry Robbins (Trades, Portfolio) with 0.56% and Simons with 0.48%.

The BV/S of Snap-on Inc. (NYSE:SNA) has grown by 10% over the past 10 years. The P/B ratio is 3.1, and price to tangible book value is 5.2.

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With the market cap of $8.84 billion the company operates in the tools and accessories industry.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 27% at $153.52. The stock price has been as high as $181.73 and as low as $140.83 in the past 52 weeks. It is 15.52% below its 52-week high and 9.01% above its 52-week low. The P/E ratio is 15.88.

Rogers is the largest shareholder among the gurus with 1.1% of outstanding shares followed by Simons with 0.76%, Columbia Wanger with 0.67%, Mairs and Power (Trades, Portfolio) with 0.64% and Joel Greenblatt (Trades, Portfolio) with 0.25%.

Apple Inc.'s (NASDAQ:AAPL) BV/S has grown by 32% over the past 10 years. The P/B ratio is 6.6, and price to tangible book value is 6.2.

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With the market cap of $825.2 billion the company operates in the consumer electronics industry.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 36% at $159.76. The stock price has been as high as $164.94 and as low as $104.08 in the past 52 weeks. It is 3.14% below its 52-week high and 53.50% above its 52-week low. The P/E ratio is 18.11.

The largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 2.52% of outstanding shares followed by Spiros Segalas (Trades, Portfolio) with 0.21% and Pioneer Investments (Trades, Portfolio) with 0.18%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

About the author:

Tiziano Frateschi
You can read about me on this blog: www.theextraincome.info

It gives suggestions on position trading.

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