5 Stocks Boosting Book Value

Wells Fargo tops the list

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Jun 06, 2019
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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. Theoretically, it is what shareholders will receive if a 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 Wells Fargo & Co. (WFC, Financial) has grown 8.40% over the last 10 years. The price-book ratio is 1.20 and the price to tangible book value is 1.58.

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The bank has a $205 billion market cap.

According to the discounted cash flow calculator, the stock is undervalued with a 49% margin of safety at $45.68. The share price has been as high as $59.53 and as low as $43.02 in the last 52 weeks. As of Wednesday, the stock was trading 23.41% below its 52-week high and 5.97% above its 52-week low. The price-earnings ratio is 10.11.

Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder with 9.12% of outstanding shares, followed by Dodge & Cox with 1.82% and PRIMECAP Management (Trades, Portfolio) with 1.02%.

Intel Corp.’s (INTC, Financial) BV/S has grown 870% over the past decade. The price-book ratio is 2.76 and the price to tangible book value is 5.39.

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The chipmaker has a market cap of $200 billion.

According to the discounted cash flow calculator, the stock is undervalued with a 37% margin of safety at $44.62. The share price has been as high as $59.59 and as low as $42.36 in the last 52 weeks. As of Wednesday, the stock was trading 25.04% below its 52-week high and 5.45% above its 52-week low. The price-earnings ratio is 10.13.

With 0.57% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by PRIMECAP Management with 0.55%, Pioneer Investments (Trades, Portfolio) with 0.17% and Bill Nygren (Trades, Portfolio) with 0.15%.

Taiwan Semiconductor Manufacturing Co. Ltd.’s (TSM, Financial) BV/S has grown 14.50% over the last 10 years. The price-book ratio is 3.58 and the price to tangible book value is 3.61.

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The semiconductor manufacturer has a market cap of $192.38 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 14% margin of safety at $39. The share price has been as high as $45.64 and as low as $34.22 in the last 52 weeks. As of Wednesday, the stock was trading 15.66% below its 52-week high and 12.51% above its 52-week low. The price-earnings ratio is 18.59.

With 0.68% of outstanding shares, Fisher is the company's largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 0.19% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.17%.

The BV/S of The Toronto-Dominion Bank (TD, Financial) has grown 8.80% over the last 10 years. The price-book ratio and the price to tangible book value are 1.72 and 2.31.

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The Canadian bank has a market cap of $101.69 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 25% margin of safety at $56.03. The share price has been as high as $62.0 and as low as $47.73 in the last 52 weeks. The stock is currently trading 10.05% below its 52-week high and 16.84% above its 52-week low. The price-earnings ratio is 12.15.

With 0.28% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 0.13%, Pioneer Investments with 0.05% and Ray Dalio (Trades, Portfolio) with 0.03%.

Gilead Sciences Inc.’s (GILD, Financial) BV/S has grown 22.70% over the past decade. The price-book ratio is 3.76 and the price to tangible book value is 34.45.

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The pharmaceutical company, which develops therapies to treat life-threatening infectious diseases, has a market cap of $81.79 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 50% margin of safety at $64.14. The share price has been as high as $79.61 and as low as $60.32 in the last 52 weeks. The stock is currently trading 19.38% below its 52-week high and 6.40% above its 52-week low. The price-earnings ratio is 14.20.

Dodge & Cox is the company's largest guru shareholder with 1.34% of outstanding shares, followed by the Simons’ firm with 0.64% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.28%

Disclosure: I do not own any stocks mentioned.

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