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5 Undervalued Stocks With Growing Book Value

According to 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 (EOP). Theoretically, it is what shareholders will receive if the 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 SK Telecom Co. Ltd. ADR ( SKM ) has grown by 5% over the past 10 years. The price-book (P/B) ratio is 1.2, and the price to tangible book value is 1.7.

The company provides wireless telecommunications services. It has a market cap of $17.69 billion.

According to the discounted cash flow ( DCF ) calculator, the stock is undervalued and is trading with a margin of safety of 23% at $28.2. The stock price has been as high as $28.33 and as low as $20.44 in the past 52 weeks. It is 0.46% below its 52-week high and above 37.96% its 52-week low. The price-earnings (P/E) ratio is 8.25.

Sarah Ketterer (Trades, Portfolio) is the largest shareholder among the gurus with 0.46% of outstanding shares followed by NWQ Managers (Trades, Portfolio) with 0.3%, Jim Simons (Trades, Portfolio) with 0.1% and Jeremy Grantham (Trades, Portfolio) with 0.1%.

BanColombia SA ADR ( CIB )'s BV/S has grown by 12% over the past decade. The P/B ratio is 1.3, and the price to tangible book value is 1.8. The financial institution in Panama has a market cap of $9.22 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 13% at $38.36. The stock price has been as high as $48.74 and as low as $35.53 in the past 52 weeks. It is 21.30% below its 52-week high and 7.97% above its 52-week low. The P/E ratio is 9.96.

The company's largest shareholder among the gurus is Bernard Horn (Trades, Portfolio) with 0.25% of outstanding shares followed by Simons with 0.16% and Grantham with 0.09%.

The BV/S of Novo Nordisk A/S ADR ( NVO ) has grown by 7% over the past 10 years. The P/B ratio is 17.6, and the price to tangible book value is 18.6.

The health care company has a market cap of $127.35 billion.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 20% at $52.51. The stock price has been as high as $53.49 and as low as $32.83 in the past 52 weeks. It is 1.83% below its 52-week high and above 59.95% its 52-week low. The P/E ratio is 21.27.

Simons is the largest shareholder of the company among the gurus with 0.59% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.5%, Tom Gayner (Trades, Portfolio) with 0.04% and Steven Cohen (Trades, Portfolio) with 0.01%.

CGI Group Inc. Class A ( GIB )'s BV/S has grown by 16% over the past decade. The P/B ratio is 3.1. The company offers information technology services and has a market cap of $15.52 billion.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 15% at $53.97. The stock price has been as high as $54.64 and as low as $45.81 in the past 52 weeks. It is 1.23% below its 52-week high and 17.81% above its 52-week low. The P/E ratio is 20.

The company's largest shareholder among the gurus is Ray Dalio (Trades, Portfolio) with 0.02% of outstanding shares followed by Grantham with 0.01% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

The BV/S of Eagle Bancorp Inc. ( EGBN ) has grown by 15% over the past 10 years. The P/B ratio is 2.1, and the price to tangible book value is 2.4.

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The company is a part of the financial services domain. It has a market cap of $2.01 billion.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 34% at $58.9. The stock price has been as high as $69.80 and as low as $46.20 in the past 52 weeks. It is 15.62% below its 52-week high and above 27.49% its 52-week low. The P/E ratio is 18.29.

Fisher is the largest shareholder of the company among the gurus with 0.22% of outstanding shares followed by Simons with 0.08%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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