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5 Companies With Low Price-Sales Ratios

- By Tiziano Frateschi

According to the GuruFocus All-in-One Screener, the following companies with market caps over $5 billion look cheap since they are trading with low price-sales ratios.


AT&T Inc. (NYSE:T) shares are trading around $33.6 with a price-sales ratio of 1.3, a price-earnings ratio of 6.5 and a forward price-earnings ratio of 9.2. The company has a market cap of $244 billion and the stock price has risen at an annualized rate of 5% over the last 10 years.

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The telecom company provides fixed-line telephone and television services. The discounted cash flow calculator gives the stock a fair value of $54.79, suggesting it is undervalued with a 39% margin of safety. The Peter Lynch earnings line also suggests the stock is undervalued, giving a fair value of $76.7.

Dodge & Cox is the company's largest shareholder among the gurus with 0.63% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.31%.

Universal Corp. (UVV) shares are trading around $64 with a price-sales ratio of 0.7 and a price-earnings ratio of 14.16. The company has a market cap of $1.6 billion. The stock price has risen at an annualized rate of 5% over the past decade.

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The discounted cash flow calculator gives the tobacco company a fair value of $48.37, suggesting it is overpriced by 29%. The Peter Lynch earnings line gives the stock a fair value of $67.80.

The company's largest shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 2.58% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 1.17% and Chuck Royce (Trades, Portfolio) with 0.64%.

TTM Technologies Inc. (TTMI) shares are trading around $17.30 with a price-sales ratio of 0.78, a price-earnings ratio of 13.1 and a forward price-earnings ratio of 10. The company has a market cap of $1.8 billion and the stock price has risen at an annualized rate of 5% over the last 10 years.

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The company manufactures printed circuit boards. The discounted cash flow calculator gives the stock a fair value of $14.13, suggesting it is overpriced by 23%. The Peter Lynch earnings line gives the stock a fair value of $19.80.

Royce is the largest guru shareholder of the company with 1.47% of outstanding shares, followed by Simons with 0.28%.

Steelcase Inc. (SCS) shares are trading around $15.4 with a price-sales ratio of 0.58, a price-earnings ratio of 22.9 and a forward price-earnings ratio of 16.29. The company has a market cap of $1.8 billion and the stock price has risen at an annualized rate of 5.1% over the past decade.

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The furniture company has a fair value of $7.17 according to the discounted cash flow calculator, suggesting it is overpriced by 114%. The Peter Lynch earnings line gives the stock a fair value of $10.

The largest shareholder of the company among the gurus is Pzena with 2.91% of outstanding shares, followed by Royce with 1%.

TransCanada Corp. (TRP) shares are trading around $41.8 with a price-sales ratio of 3.58, a price-earnings ratio of 16.09 and a forward price-earnings ratio of 14.9. The company has a market cap of $38.4 billion. The stock price has risen at an annualized rate of 5.1% over the last 10 years.

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The discounted cash flow calculator gives the energy infrastructure company a fair value of $28.36, suggesting it is overpriced by 48%. The Peter Lynch earnings line suggests the stock is fairly priced, giving it a fair value of $39.8.

The company's largest guru shareholder is the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.55% of outstanding shares, followed by Simons with 0.06% and Pioneer Investments (Trades, Portfolio) with 0.05%.

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

This article first appeared on GuruFocus.