Companies that are growing their earnings are often good investments because they can return a solid profit to investors. According to the discounted cash flow calculator, the following undervalued companies have grown their earnings over a five-year period.
The earnings per share of Biogen Inc. (BIIB, Financial) have grown 19% annually over the last five years.
According to the DCF calculator, the stock is undervalued and is trading with a 27% margin of safety at $300 per share. The price-earnings ratio is 19.09. The share price has been as high as $388.67 and as low as $249.17 in the last 52 weeks; it is currently 20.44% below its 52-week high and 24.66% above its 52-week low.
The company, which develops therapies to treat neurological diseases, has a market cap of $59.08 billion and an enterprise value of $64.58 billion.
Biogen's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 7.38% of outstanding shares, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 1.83%, Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.42% and Pioneer Investments (Trades, Portfolio) with 0.13%.
Bank of Nova Scotia’s (BNS, Financial) earnings per share have grown 6% per year over the last five years.
According to the DCF calculator, the stock is undervalued and is trading with a 22% margin of safety at $51.34 per share. The price-earnings ratio is 10.08. The share price has been as high as $66.78 and as low as $52.09 in the last 52 weeks; it is currently 21% below its 52-week high and 1% above its 52-week low.
The Canadian bank has a market cap of $63.18 billion and an enterprise value of $23.8 billion.
With 0.21% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Pioneer Investments with 0.19%, Jeremy Grantham (Trades, Portfolio) with 0.05% and Ray Dalio (Trades, Portfolio) with 0.05%.
The earnings per share of CME Group Inc. (CME, Financial) have grown 29% per year over the last five years.
According to the DCF calculator, the stock is undervalued and is trading with a 5% margin of safety at $187 per share. The price-earnings ratio is 14. The share price has been as high as $197.08 and as low as $143.68 in the last 52 weeks; it is currently 4.83% below its 52-week high and 30.17% above its 52-week low.
The operator of financial exchanges has a market cap of $66.4 billion and an enterprise value of $68.33 billion.
With 0.57% of outstanding shares, PRIMECAP Management is the company's largest guru shareholder, followed by Pioneer Investments with 0.31% and David Carlson (Trades, Portfolio) with 0.18%.
British American Tobacco PLC’s (BTI, Financial) earnings per share have grown 41% per year over the last five years.
According to the DCF calculator, the stock is undervalued and is trading with a 95% margin of safety at $32 per share. The price-earnings ratio is 1.45. The share price has been as high as $71.44 and as low as $32.56 in the last 52 weeks; it is currently 54.20% below its 52-week high and 0.51% above its 52-week low.
The tobacco company has a market cap of $75.85 billion and an enterprise value of $134.45 billion.
The company’s largest guru shareholder is Lee Ainslie (Trades, Portfolio) with 0.06% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio) with 0.04% and David Winters (Trades, Portfolio) with 0.01%.
The earnings per share of Itau Unibanco Holding SA (ITUB, Financial) have grown 14% per year over the last five years.
According to the DCF calculator, the stock is undervalued and is trading with a 23% margin of safety at $9.05 per share. The price-earnings ratio is 12.29. The share price has been as high as $11.32 and as low as $6.57 in the last 52 weeks; it is currently 22.17% below its 52-week high and 34.16% above its 52-week low.
The company, which provides investment banking and foreign trade financing, has a market cap of $79.79 billion and an enterprise value of $109.59 billion.
The largest guru shareholder of the company is Ken Fisher (Trades, Portfolio) with 0.27% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 0.1%, Howard Marks (Trades, Portfolio) with 0.08% and the Dodge & Cox with 0.07%.
Starbucks Corp.'s (SBUX, Financial) earnings per share have grown 136% per year over the last five years.
According to the DCF calculator, the stock is undervalued and is trading with a 29% margin of safety at $62 per share. The price-earnings ratio is 19.37. The share price has been as high as $68.98 and as low as $47.37 in the last 52 weeks; it is currently 6.54% below its 52-week high and 36.10% above its 52-week low.
The popular coffee chain has a market cap of $77.45 billion and an enterprise value of $78 billion.
With 0.42% of outstanding shares, Frank Sands (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments with 0.27%, Jerome Dodson (Trades, Portfolio) with 0.04% and Tom Gayner (Trades, Portfolio) with 0.03%.
Disclosure: I do not own any stocks mentioned in this article.
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