6 Cheap Stocks Boosting Book Value

Itau Unibanco tops the list

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Sep 17, 2019
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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 Itau Unibanco Holding SA (ITUB, Financial) has grown 9% over the last 10 years. The price-book ratio is 3.72 and the price-tangible book value is 25.20.

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The Brazilian bank has a market cap of $83.80 billion and an enterprise value of $98.27 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 23.55% margin of safety at $8.57. The share price has been as high as $10.80 and as low as $6.73 in the last 52 weeks. As of Tuesday, the stock was trading 20.93% below its 52-week high and 22.41% above its 52-week low. The price-earnings ratio is 11.39.

With 0.45% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by Ken Heebner (Trades, Portfolio) with 0.14% and Howard Marks (Trades, Portfolio) with 0.12%

Ambev SA's (ABEV, Financial) book value per share has grown 23.30% over the past decade. The price-book ratio is 4.96 and the price-tangible book value is 14.63.

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The brewer has a market cap of $73.59 billion and an enterprise value of $71.60 billion.

According to the DCF calculator, the stock is overpriced by 120% at $4.7. The share price has been as high as $5.45 and as low as $3.77 in the last 52 weeks. As of Tuesday, the stock was trading 13.94% below its 52-week high and 24.40% above its 52-week low. The price-earnings ratio is 27.01.

With 0.16% of outstanding shares, Fisher is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.13%, Heebner with 0.01% and Jeremy Grantham (Trades, Portfolio) with 0.01%

Micron Technology Inc.'s (MU, Financial) book value per share has grown 11.80% over the past decade. The price-book ratio is 1.56 and the price-tangible book value is 1.64.

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The semiconductor company has a market cap of $55.26 billion and an enterprise value of $54.34 billion

According to the DCF calculator, the stock is undervalued and is trading with a 45% margin of safety at $50.20. The share price has been as high as $51.39 and as low as $28.39 in the last 52 weeks. As of Tuesday, the stock was trading 2.41% below its 52-week high and 76.65% above its 52-week low. The price-earnings ratio is 5.86.

With 5.23% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons’ firm with 0.88% and Andreas Halvorsen (Trades, Portfolio) with 0.58%

The book value per share of Schlumberger Ltd. (SLB, Financial) has grown 6% over the last 10 years. The price-book ratio is 1.53, and the price to tangible book value is 22.59.

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The company, which provides services to the oil and gas industry, has a market cap of $53.94 billion and an enterprise value of $69.09 billion.

According to the DCF calculator, the stock is overpriced by 147% at $37.60. The share price has been as high as $63.65 and as low as $31.03 in the last 52 weeks. As of Tuesday, the stock was trading 38.24% below its 52-week high and 26.68% above its 52-week low. The price-earnings ratio is 26.01.

With 3.95% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 2.25% and Barrow, Hanley, Mewhinney & Strauss with 1.37%.

Baidu Inc.'s (BIDU, Financial) book value per share has grown 48.80% over the past decade. The price-book ratio is 1.64 and the price-tangible book value is 1.94.

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The Chinses search engine operator has a market cap of $38.74 billion and an enterprise value of $31.37 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 42% margin of safety at $108. The share price has been as high as $234.88 and as low as $93.39 in the last 52 weeks. As of Tuesday, the stock was trading 52.75% below its 52-week high and 18.83% above its 52-week low. The price-earnings ratio is 16.29.

Dodge & Cox is the company's largest guru shareholder with 2.37% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio) with 1.52% and David Herro (Trades, Portfolio) with 1.01%.

The book value per share of The Travelers Companies Inc. (TRV, Financial) has grown 7.20% over the last 10 years. The price-book ratio is 1.52 and the price to tangible book value is 1.83.

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The property and casualty insurance company has a market cap of $38.06 billion and an enterprise value of $40.71 billion.

According to the DCF calculator, the stock is overpriced by 17% at $147. The share price has been as high as $155.09 and as low as $43.02 in the last 52 weeks. As of Tuesday, the stock was trading 5.64% below its 52-week high and 31.74% above its 52-week low. The price-earnings ratio is 14.86.

With 2.29% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Hotchkis & Wiley with 0.89%, First Eagle Investment with 0.83% and Tom Gayner (Trades, Portfolio) with 0.12%.

Disclosure: I do not own any stocks mentioned.

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