4 Health Care Stocks Boosting Book Value
- By Tiziano Frateschi
According to the GuruFocus All-in-One Screener, a Premium feature, the following guru-owned health care stocks have grown their book value per share over the past decade through March 11.
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 is 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.
Humana
The book value per share of Humana Inc. (HUM) has risen 7.90% over the last 10 years. The price-book ratio is 3.89 and the price-tangible book ratio is 5.96.
The U.S. private health insurer has a market cap of $51.68 billion.
According to the discounted cash flow calculator, the stock is undervalued and is trading with a 6.85% margin of safety at $405. The share price has been as high as $474 and as low as $208 in the last 52 weeks. As of Thursday, the stock was trading 15.51% below its 52-week high and 92.59% above its 52-week low. The price-earnings ratio is 15.86.
Vanguard Health Care Fund (Trades, Portfolio) is the largest guru shareholder of the company with 1.24% of outstanding shares, followed by Steve Mandel (Trades, Portfolio) with 1.17% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.74%.
Biogen
Biogen Inc.'s (BIIB) book value per share has grown 12.80% over the past decade. The price-book ratio is 3.89 and the price-tangible book ratio is 22.44.
The company has a market cap of $41.13 billion and an enterprise value of $64.34 billion.
According to the DCF calculator, the stock is undervalued and is trading with a 61.21% margin of safety at $270. The share price has been as high as $363.92 and as low as $223 in the last 52 weeks. As of Thursday, the stock was trading 25.81% below its 52-week high and 20.95% above its 52-week low.
With 10.39% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Vanguard Health Care Fund (Trades, Portfolio) with 2.76% and Simons' firm with 1.99%.
The Cooper Companies
The Cooper Companies Inc.'s (COO) book value per share has grown 7.50% over the past decade. The price-book ratio is 3.20 and the price-tangible book ratio is 9.22.
The company has a market cap of $18.94 billion and an enterprise value of $20.92 billion.
According to the DCF calculator, the stock is undervalued and is trading with a 22.97% margin of safety at $385. The share price has been as high as $401.92 and as low as $236 in the last 52 weeks. As of Thursday, the stock was trading 4.09% below its 52-week high and 62.87% above its 52-week low.
Al Gore (Trades, Portfolio) is the largest guru shareholder of the company with 4.56% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 0.49%.
Universal Health Services
The book value per share of Universal Health Services Inc. (UHS) has grown 13.40% over the last 10 years. The price-book ratio is 1.82 and the price-tangible book ratio is 4.73.
The company, which operates acute care hospital services and behavioral health services, has a market cap of $11.45 billion and an enterprise value of $14.51 billion.
According to the DCF calculator, the stock is undervalued and is trading with a 34.07% margin of safety at $134. The share price has been as high as $143 and as low as $65 in the last 52 weeks. As of Thursday, the stock was trading 6.43% below its 52-week high and 106.41% above its 52-week low. The price-earnings ratio is 12.22.
With 4.19% of outstanding shares, Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 3.55%, Larry Robbins (Trades, Portfolio) with 0.73%, Steven Cohen (Trades, Portfolio) with 0.30% and Jeremy Grantham (Trades, Portfolio) with 0.17%.
Disclosure: I do not own any stocks mentioned.
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This article first appeared on GuruFocus.