5 Cheap Stocks Growing Book Value

World Acceptance Corp tops the list

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Feb 06, 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 World Acceptance Corp. (WRLD, Financial) has grown 14% over the past 10 years. The price-book (P/B) ratio is 2 and the price to tangible book value is 2.1.

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The consumer finance company has a market cap of $993.53 million.

According to the discounted cash flow (DCF) calculator, the stock is undervalued and is trading with a 19% margin of safety at $112.18. The stock price has been as high as $121.17 and as low as $47.23 in the past 52 weeks. It is currently 7.42% below its 52-week high and above 137.52% its 52-week low. The price-earnings (P/E) ratio is 17.57.

Jim Simons (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.29% of outstanding shares.

Union Pacific Corp.'s (UNP, Financial) BV/S has grown 76% over the past decade. The price-book ratio is 4.1 and the price to tangible book value is 4.1.Â

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The railroad company has a market cap of $101.83 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 62% margin of safety at $129.36. The stock price has been as high as $143.05 and as low as $101.06 in the past 52 weeks. It is currently 9.57% below its 52-week high and 28% above its 52-week low. The price-earnings ratio is 9.57.

The company’s largest guru shareholder is Dodge & Cox with 1.73% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.79% and PRIMECAP Management (Trades, Portfolio) with 0.27%.

The BV/S of McKesson Corp. (MCK, Financial) has grown 9% over the past 10 years. The price-book ratio is 2.8.

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The pharmaceutical distributor has a market cap of $32.85 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 68% margin of safety of at $159.21. The stock price has been as high as $178.86 and as low as $133.82 in the past 52 weeks. It is currently 10.99% below its 52-week high and 18.97% above its 52-week low. The price-earnings ratio is 7.25.

The Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder with 3.6% of outstanding shares, followed by Larry Robbins (Trades, Portfolio) with 1.32%, Richard Pzena (Trades, Portfolio) with 1.19% and Charles Brandes (Trades, Portfolio) with 0.35%.

Apple Inc.'s (AAPL, Financial) BV/S has grown 27% over the past decade. The price-book ratio is 5.8 and price to tangible book value is 6.2.

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The technology company has a market cap of $815.6 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 42% margin of safety at $160.5. The stock price has been as high as $180.10 and as low as $128.16 in the past 52 weeks. It is currently 10.88% below its 52-week high and 25.23% above its 52-week low. The price-earnings ratio is 16.50.

With 2.64% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.22% and Spiros Segalas (Trades, Portfolio) with 0.21%.

The BV/S of Credicorp Ltd. (BAP, Financial) has grown 17% over the past decade. The price-book ratio is 3.1.Â

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The company, which is the largest financial services company in Peru, has a market cap of $21.14 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 13% margin of safety at $224. The stock price has been as high as $237.99 and as low as $150.71 in the past 52 weeks. It is currently 5.88% below its 52-week high and above 48.63% its 52-week low. The price-earnings ratio is 17.47.

Fisher is the company's largest shareholder among the gurus with 1.37% of outstanding shares, followed by Frank Sands (Trades, Portfolio) with 0.28% and Jeremy Grantham (Trades, Portfolio) with 0.27%.

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

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