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Tiziano Frateschi
Tiziano Frateschi
Articles (2519)  | Author's Website |

5 Undervalued Stocks Expanding Book Value

Aflac on the list

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 companys true value, some investors check the tangible book value to confirm their investment ideas.

CSX Corp

The book value per share of CSX Corp. (CSX) has grown 9.0% over the last 10 years. The price-book ratio and the price-tangible book value are both 4.86.

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The railroad operator has a market cap of $56.57 billion and an enterprise value of $71.32 billion.

According to the discount cash flow calculator, the stock is undervalued and is trading with a 9.37% margin of safety at $72. The share price has been as high as $80.73 and as low as $58.47 in the last 52 weeks. As of Thursday, the stock was trading 9.88% below its 52-week high and 24.42% above its 52-week low. The price-earnings ratio is 17.37.

With 0.53% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.38%.

Honda Motor Co. Ltd.

Honda Motor Co Ltd. (HMC)'s book value per share has grown 8.40% over the past decade. The price-book ratio is 0.69 and the price-tangible book value is 0.76.

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The company, which manufactures automobiles, motorcycles and power products, has a market cap of $53.02 billion and an enterprise value of $97.93 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 46.52% margin of safety at $29.22. The share price has been as high as $30.12 and as low as $22.87 in the last 52 weeks. As of Thursday, the stock was trading 2.99% below its 52-week high and 27.75% above its 52-week low. The price-earnings ratio is 10.56.

With 0.12% of outstanding shares, Jim Simons (Trades, Portfolio) Renaissance Technologies is the company's largest guru shareholder, followed by Charles Brandes (Trades, Portfolio) with 0.08%.

Micron Technology Inc.

Micron Technology Inc. (MU)'s book value per share has grown 19.73% over the past decade. The price-book ratio is 1.47 and the price-tangible book value is 1.54.

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The company, which operates in the semiconductors industry, has a market cap of $51.92 billion and an enterprise value of $50.71 billion

According to the DCF calculator, the stock is undervalued and is trading with a 19.73% margin of safety at $46.90. The share price has been as high as $51.39 and as low as $28.39 in the last 52 weeks. As of Thursday, the stock was trading 8.74% below its 52-week high and 65.20% above its 52-week low. The price-earnings ratio is 8.59.

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)s Viking Global Investors with 0.58%

Baidu Inc.

The book value per share of Baidu Inc. (BIDU) has grown 48.80% over the last 10 years. The price-book ratio is 1.74 the price to tangible book value is 2.13.

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The Chinese Internet search engine has a market cap of $42.55 billion and an enterprise value of $35.18 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 37.17% margin of safety at $121.8. The share price has been as high as $196 and as low as $93.39 in the last 52 weeks. As of Thursday, the stock was trading 1.50% below its 52-week high and 25.91% above its 52-week low. The price-earnings ratio is 17.9.

With 2.37% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Sarah Ketterer (Trades, Portfolio)s Causeway Capital Management with 1.52%, David Herro (Trades, Portfolio) with 1.01% and First Pacific Advisors (Trades, Portfolio) with 0.68%.

Aflac Inc.

Aflac Inc. (AFL)'s book value per share has grown 18.07% over the past decade. The price-book ratio is 1.37 and the price-tangible book value is 5.95.

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The company, which provides supplemental health insurance and life insurance, has a market cap of $39.61 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 18.07% margin of safety at $54. The share price has been as high as $57.18 and as low as $28.87 in the last 52 weeks. As of Thursday, the stock was trading 5.61% below its 52-week high and 28.87% above its 52-week low. The price-earnings ratio is 13.38.

John Rogers (Trades, Portfolio) is the company's largest guru shareholder with 0.21% of outstanding shares, followed by Smead Value Fund (Trades, Portfolio) with 0.14%.

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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