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Tiziano Frateschi
Tiziano Frateschi
Articles (1557)  | Author's Website |

5 Bargain Stocks Growing Book Value

InterDigital, Ross Stores top the list

June 05, 2018 | About:

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. 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 InterDigital Inc. (NASDAQ:IDCC) has grown 26% over the past 10 years. The price-book ratio is 2.8 and the price to tangible book value is 4.

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The company develops technologies to enhance wireless communications. It has a market cap of $2.82 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 40% margin of safety at $81.3. The stock price has been as high as $84.55 and as low as $67.55 in the past 52 weeks. The price is currently 3.84% below its 52-week high and 20.36% above its 52-week low. The price-earnings ratio is 17.04.

First Pacific Advisors (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.77% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 1.43% and the FPA Capital Fund (Trades, Portfolio) with 0.73%.

Ross Stores Inc.'s (NASDAQ:ROST) BV/S has grown 17% over the past decade. The price-book ratio is 10.1 and the price to tangible book value is 10.1. 

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With a market cap of $31.48 billion, the company operates a chain of off-price apparel and home fashion retail stores.

According to the DCF calculator, the stock is undervalued and is trading with a 24% margin of safety at $83.14. The stock price has been as high as $85.66 and as low as $52.85 in the past 52 weeks. The price is currently 2.94% below its 52-week high and 57.31% above its 52-week low. The price-earnings ratio is 21.65.

The company’s largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 3.41% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 1.23% and David Rolfe (Trades, Portfolio) with 0.41%.

The BV/S of Canadian National Railway Co. (NYSE:CNI) has grown 8% over the past 10 years. The price-book ratio is 4.8 and the price to tangible book value is 4.9. 

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The company, which operates a freight railway, has a market cap of $61.43 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 15% margin of safety at $83.34. The stock price has been as high as $85.73 and as low as $70.59 in the past 52 weeks. The price is currently 2.79% below its 52-week high and 18.06% above its 52-week low. The price-earnings ratio is 15.23.

Bill Gates (Trades, Portfolio) is the largest guru shareholder of the company with 2.32% of outstanding shares, followed by Simons with 0.18%, Ken Fisher (Trades, Portfolio) with 0.06% and Ray Dalio (Trades, Portfolio) with 0.01%.

WPP PLC's (NYSE:WPP) BV/S has grown 6% over the last decade. The price-book ratio is 1.7. 

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The U.K.-based advertising and public relations company has a market cap of $20.94 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 55% margin of safety at $83.73. The stock price has been as high as $112.60 and as low as $76.68 in the past 52 weeks. The price is currently 25.64% below its 52-week high and 9.19% above its 52-week low. The price-earnings ratio is 8.80.

The company’s largest guru shareholder is Charles Brandes (Trades, Portfolio) with 0.26% of outstanding shares, followed by Simons with 0.17% and Tweedy Browne (Trades, Portfolio) with 0.09%.

The BV/S of Torchmark Corp. (NYSE:TMK) has grown 13% over the past 10 years. The price-book ratio is 1.7 and the price to tangible book value is 1.8. 

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The insurance company, which offers health and life insurance policies, has a market cap of $9.67 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 64% margin of safety at $285.18. The stock price has been as high as $93.60 and as low as $14.37 in the past 52 weeks. The price is currently 8.99% below its 52-week high and 14.37% above its 52-week low. The price-earnings ratio is 6.76.

With 5.6% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Richard Pzena (Trades, Portfolio) with 0.29% and Fisher with 0.12%.

Disclosure: I do not own 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.

Visit Tiziano Frateschi's Website


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