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Tiziano Frateschi
Tiziano Frateschi
Articles (2120)  | Author's Website |

6 Stocks Boosting Book Value

Berkshire Hathaway tops the list

September 10, 2019 | About:

According to the GuruFocus All-In-One Screener, the following companies have grown their book value per share over the past decade.

Book value per share 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 book value per share may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

The book value per share of Berkshire Hathaway Inc. (NYSE:BRK.A) has grown 11.60% over the last 10 years. The price-book ratio is 1.32 and the price-tangible book value is 1.31.

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According to the discounted cash flow calculator, the stock is overpriced by 54% at $309,000. The share price has been as high as $335,900 and as low as $279,410 in the last 52 weeks. As of Tuesday, the stock was trading 36.98% below its 52-week high and 22.41% above its 52-week low. The price-earnings ratio is 16.64.

With 0.26% of outstanding shares, Tom Russo (Trades, Portfolio) is the company's largest guru shareholder, followed by Chris Davis (Trades, Portfolio) with 0.22% and Ruane Cunniff (Trades, Portfolio) with 0.15%

Bank Bradesco SA's (NYSE:BBDO) book value per share has grown 15.30% over the past decade. The price-book ratio is 2.01 and the price-tangible book value is 2.31.

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The Brazilian bank has a market cap of $64.40 billion and an enterprise value of $43.74 billion

According to the DCF calculator, the stock is overpriced by 7.32% at $7.42 The share price has been as high as $9.48 and as low as $4.77 in the last 52 weeks. As of Tuesday, the stock was trading 19.62% below its 52-week high and 59.86% above its 52-week low. The price-earnings ratio is 16.1.

PNC Financial Services Group Inc.'s (NYSE:PNC) book value per share has grown 5.20% over the past decade. The price-book ratio is 1.22 and the price-tangible book value is 1.56.

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The company, which provides retail, corporate and institutional banking, has a market cap of $58.65 billion and an enterprise value of $28.29 billion

According to the DCF calculator, the stock is undervalued and is trading with a 34.48% margin of safety at $131.72. The share price has been as high as $145.30 and as low as $108.45 in the last 52 weeks. As of Tuesday, the stock was trading 9.35% below its 52-week high and 21.46% above its 52-week low. The price-earnings ratio is 12.32.

With 1.95% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.34% and Diamond Hill Capital (Trades, Portfolio) with 0.18%

The book value per share of JPMorgan Chase & Co. (NYSE:JPM) has grown 6.70% over the last 10 years. The price-book ratio is 1.56, and the price to tangible book value is 2.02.

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The bank has a market cap of $360.07 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 51% margin of safety at $115. The share price has been as high as $119.24 and as low as $91.11 in the last 52 weeks. As of Tuesday, the stock was trading 5.56% below its 52-week high and 23.60% above its 52-week low. The price-earnings ratio is 11.50.

With 1.86% of outstanding shares, Buffett is the company's largest guru shareholder, followed by Dodge & Cox with 0.78% and PRIMECAP Management (Trades, Portfolio) with 0.72%.

Intel Corp.'s (NASDAQ:INTC) book value per share has grown 8.90% over the past decade. The price-book ratio is 3.05 and the price-tangible book value is 5.82.

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The chipmaker has a market cap of $225.58 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 26.54% margin of safety at $51.6. The share price has been as high as $59.59 and as low as $42.36 in the last 52 weeks. As of Tuesday, the stock was trading 14.55% below its 52-week high and 20.21% above its 52-week low. The price-earnings ratio is 12.03.

Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder with 0.60% of outstanding shares, followed by PRIMECAP Management with 0.54% and Davis with 0.17%.

The book value per share of Wells Fargo & Co. (NYSE:WFC) has grown 6.50% over the last 10 years. The price-book ratio is 1.23 and the price to tangible book value is 1.59.

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The bank has a market cap of $207.75 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 51.76% margin of safety at $47.15. The share price has been as high as $58.07 and as low as $43.02 in the last 52 weeks. As of Tuesday, the stock was trading 18.80% below its 52-week high and 9.60% above its 52-week low. The price-earnings ratio is 10.

With 9.30% of outstanding shares, Buffett is the company's largest guru shareholder, followed by Dodge & Cox with 1.90% and PRIMECAP Management with 1.15%.

Disclosure: I do not own any stocks mentioned.

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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