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6 Cheap Stocks With Rising Book Value

- By Tiziano Frateschi

According to the GuruFocus All-In-One Screener, the following companies have grown their book value per share (BV/S) over the last decade.

BV/S 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 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 Chase Corp. (CCF) has grown 13% over the last 10 years. The price-book ratio is 3.8 and the price to tangible book value is 9.4.

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The company, which provides industrial protective materials, has a $948.73 million market cap.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 21% margin of safety at $100. The share price has been as high as $131.70 and as low as $90 in the last 52 weeks. As of Monday, it is 23.39% below its 52-week high and 12.11% above its 52-week low. The price-earnings ratio is 21.89.

Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder with 4.02% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 3.76%.

JM Smucker Co.'s (SJM) BV/S has grown 6% over the past decade. The price-book ratio of 1.5.

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The company, which provides a range of products spanning food, beverage and pet products, has a market cap of $11.81 billion.

According to the DCF calculator, the stock is undervalued with a 37% margin of safety at $103.83. The share price has been as high as $133.38 and as low as $91.32 in the last 52 weeks. As of Monday, it is 22.15% below its 52-week high and 13.70% above its 52-week low. The price-earnings ratio is 8.81.

With 1.55% of outstanding shares, John Rogers (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.23%, Richard Snow (Trades, Portfolio) with 0.2% and Mario Gabelli (Trades, Portfolio)'s GAMCO Investors with 0.18%.

Affiliated Managers Group Inc.'s (AMG) BV/S has grown 15% over the past decade. The price-book ratio of 1.5.

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The asset management company has a market cap of $5.53 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 23% margin of safety at $106. The share price has been as high as $200.52 and as low as $88.46 in the last 52 weeks. As of Monday, it is 47.65% below its 52-week high and 18.67% above its 52-week low. The price-earnings ratio is 8.25.

With 2.23% of outstanding shares, Mason Hawkins (Trades, Portfolio)' Southeastern Asset Management is the company's largest guru shareholder, followed by the Simons' firm with 0.77% and Rogers with 0.51%.

The BV/S of PVH Corp. (PVH) has grown 15% over the last 10 years. The price-book ratio is 1.5.

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The company which designs a portfolio of leading lifestyle brands has a market cap of $8.24 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 27% margin of safety at $108. The share price has been as high as $169.22 and as low as $86.46 in the last 52 weeks. It is currently 35.73% below its 52-week high and 25.79% above its 52-week low. The price-earnings ratio is 12.15.

With 1% of outstanding shares, Steven Cohen (Trades, Portfolio)'s Point72 Asset Management is the company's largest guru shareholder, followed by Louis Moore Bacon (Trades, Portfolio) with 0.65% and Leon Cooperman (Trades, Portfolio)'s Omega Advisors with 0.34%.

Walt Disney Co.'s (DIS) BV/S has grown 6% over the past decade. The price-book ratio and price to tangible book value are 3.4 and 15.5.

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The diversified worldwide entertainment company has a market cap of $165.91 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 37% margin of safety at $111. The share price has been as high as $120.20 and as low as $97.68 in the last 52 weeks. It is currently 7.40% below its 52-week high and 13.94% above its 52-week low. The price-earnings ratio is 13.31.

Andreas Halvorsen (Trades, Portfolio)'s Viking Global Investors is the company's largest guru shareholder with 0.73% of outstanding shares, followed by Lee Ainslie (Trades, Portfolio) with 0.24%, PRIMECAP Management (Trades, Portfolio) with 0.22% and Diamond Hill Capital (Trades, Portfolio) with 0.14%.

The BV/S of The Middleby Corp. (MIDD) has grown 22% over the last 10 years. The price-book ratio is 4.3.

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The company which manufactures foodservice equipment has a $6.73 billion market cap.

According to the DCF calculator, the stock is undervalued and is trading with a 17% margin of safety at $120. The share price has been as high as $137.16 and as low as $96.65 in the last 52 weeks. As of Monday, it is 12.20% below its 52-week high and 24.59% above its 52-week low. The price-earnings ratio is 22.51.

With 4.31% of outstanding shares, Halvorsen is the company's largest guru shareholder.

Disclosure: I do not own any stocks mentioned.

This article first appeared on GuruFocus.