According to the GuruFocus All-in-One Screener, the following stocks with market caps over $5 billion look cheap since they are trading with low price-sales ratios.
British American Tobacco PLC (BTI, Financial) is trading around $49 per share with a price-sales ratio of 3.86 and a price-earnings ratio of 2.10. The company has a market cap of $113.23 billion and the stock price has risen at an annualized rate of 7.5% over the last 10 years.
The company manufactures and sells cigarettes. The discounted cash flow calculator gives the stock a fair value of $660.56 per share, suggesting it is undervalued by 93%. The Peter Lynch earnings line also suggests the stock is undervalued, giving a fair value of $367.
Lee Ainslie (Trades, Portfolio) is the largest shareholder among the gurus with 0.06% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio) with 0.03%.
WPP PLC (WPP, Financial) is trading around $83 per share with a price-sales ratio of 1.1 and a price-earnings ratio of 9.1. The company has a market cap of $20.79 billion and the stock price has risen at an annualized rate of 8.4% over the past decade.
The discounted cash flow calculator gives the U.K.-based advertising company a fair value of $184.97 per share, suggesting it has a 55% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $180.
The largest shareholder of the company among the gurus is Charles Brandes (Trades, Portfolio) with 0.32% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.15% and Tweedy Browne (Trades, Portfolio) with 0.09%.
Express Scripts Holding Co. (ESRX, Financial) is trading around $88 per share with a price-sales ratio of 0.50 and a price-earnings ratio of 10.86. The company has a market cap of $49.64 billion. The stock price has risen at an annualized rate of 9.2% over the last 10 years.
The pharmacy benefit management company offers health care management and administrative services. The discounted cash flow calculator gives the stock a fair value of $191 per share, suggesting it has a 54% margin of safety. The Peter Lynch earnings line gives the stock a fair value of $222.
Dodge & Cox is the company's largest shareholder among the gurus with 7.38% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.45%.
Aaron's Inc. (AAN, Financial) is trading around $49 per share with a price-sales ratio of 0.97, a price-earnings ratio of 12.10 and a forward price-earnings ratio of 14.56. The company has a market cap of $3.41 billion and the stock price has risen at an annualized rate of 10.1% over the past decade.
The lease-to-own retailer of furniture, consumer electronics and household accessories is trading with a 17% margin of safety, according to the discounted cash flow calculator. The Peter Lynch earnings line also suggests the stock is undervalued, giving it a fair value of $61.
The largest gurur shareholder of the company is Diamond Hill Capital (Trades, Portfolio) with 2.15% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 0.83%.
InterDigital Inc. (IDCC, Financial) is trading around $81 per share with a price-sales ratio of 6.32 and a price-earnings ratio of 22.63. The company has a market cap of $2.84 billion and the stock price has risen at an annualized rate of 13% over the last 10 years.
The company operates in the telecom services industry. The discounted cash flow calculator gives the stock a fair value of $102.77, suggesting it is undervalued with a 20% margin of safety.
With 1.75% of outstanding shares, First Pacific Advisors is the company's largest guru shareholder, followed by Simons with 1.2% and FPA Capital Fund (Trades, Portfolio) with 0.68%.
Disclosure: I do not own any stocks mentioned in this article.
