5 Undervalued Stocks With Growing Book Value

Aflac tops the list

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Jan 09, 2018
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According to the GuruFocus All-In-One Screener, the following companies have grown their book value 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. (AFL, Financial) has grown 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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The insurance company has a market cap of $35.28 billion.

According to the discounted cash flow (DCF) calculator, the stock is undervalued and is trading with a 12% margin of safety at $89.73. The stock price has been as high as $89.81 and as low as $66.50 over the past 52 weeks. It is currently 0.12% below its 52-week high and 34.93% above its 52-week low. The price-earnings (P/E) ratio is 13.03.

Bill Nygren (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.15% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 0.4%, Jim Simons (Trades, Portfolio) with 0.13% and Jeremy Grantham (Trades, Portfolio) with 0.06%.

Skyworks Solutions Inc.'s (SWKS, Financial) BV/S has grown 16% over the past decade. The P/B ratio is 4.6 and the price to tangible book value is 6.

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The company, which makes semiconductors for wireless handsets, has a market cap of $18.54 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 34% margin of safety at $101.23. The stock price has been as high as $117.65 and as low as $74.32 over the past 52 weeks. It is currently 13.96% below its 52-week high and 36.21% above its 52-week low. The P/E ratio is 18.70.

The company’s largest guru shareholder is Manning & Napier Advisors Inc. with 1.2% of outstanding shares, followed by Richard Snow (Trades, Portfolio) with 0.18%.

The BV/S of Amgen Inc. (AMGN, Financial) has grown 10% over the past decade. The P/B ratio is 4.1 and the price to tangible book value is 15.3.

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The biotechnology company has a market cap of $131.14 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 15% margin of safety at $180.65. The stock price has been as high as $191.10 and as low as $145.12 over the past 52 weeks. It is currently 5.473.77% below its 52-week high and 20.13% above its 52-week low. The price-earnings (P/E) ratio is 16.31.

PRIMECAP Management (Trades, Portfolio) is the company's largest shareholder among the gurus with 3.07% of outstanding shares, followed by Simons with 0.54% and David Carlson (Trades, Portfolio) with 0.06%.

Hingham Institution for Savings'Â (HIFS, Financial) BV/S has grown 12% over the past decade. The P/B ratio is 2.4 and price to tangible book value is 2.4.

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The bank has a market cap of $429.96 million.

According to the DCF calculator, the stock is undervalued and is trading with a 34% margin of safety at $201.6. The stock price has been as high as $242 and as low as $148.02 over the past 52 weeks. It is currently 16.69% below its 52-week high and 36.20% above its 52-week low. The P/E ratio is 17.34.

With 0.81% of outstanding shares, Simons is the company's largest guru shareholder.

The BV/S of Diamond Hill Investment Group Inc. (DHIL, Financial) has grown 12% over the past 10 years. The P/B ratio is 3.9 and the price to tangible book value is 3.9.

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The asset management company has a market cap of $720.92 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 41% margin of safety at $207.8 The stock price has been as high as $219.90 and as low as $182.50 over the past 52 weeks. It is currently 5.50% below its 52-week high and 13.86% above its 52-week low. The P/E ratio is 13.82.

Chuck Akre (Trades, Portfolio) is the company's largest guru shareholder with 4.19% of outstanding shares, followed by Simons with 2.88% and Chuck Royce (Trades, Portfolio) with 1.85%.

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