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6 Undervalued Stocks Growing 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 past 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 SORL Auto Parts Inc. (SORL) has grown 7.40% over the last 10 years. The price-book ratio and the price to tangible book value are both 0.32.

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The company, which manufactures air brake systems and other automotive parts, has a $55.79 million market cap.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 62% margin of safety at $2.8. The share price has been as high as $6.89 and as low as $1.77 in the last 52 weeks. As of Tuesday, the stock was trading 58.05% below its 52-week high and 63.28% above its 52-week low. The price-earnings ratio is 4.51.

Mario Gabelli (Trades, Portfolio) is the company's largest guru shareholder with 0.49% of outstanding shares.

China Automotive Systems Inc.'s (CAAS) BV/S has grown 14.70% over the past decade. The price-book ratio and the price to tangible book value are both 0.36.

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The company, which supplies power steering systems and components, has a market cap of $104.11 million.

The share price has been as high as $5 and as low as $2 in the last 52 weeks. As of Tuesday, the stock was trading 34.20% below its 52-week high and 64.50% above its 52-week low. The forward price-earnings ratio is 5.48.

With 0.92% of outstanding shares, Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder.

Ever-Glory International Group Inc.'s (EVK) BV/S has grown 14.10% over the last 10 years. The price-book ratio is 0.56 and the price to tangible book value is 0.60.

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The retailer of fashion apparel has a market cap of $55.49 million.

According to the DCF calculator, the stock is undervalued and is trading with a 63% margin of safety at $3.75. The share price has been as high as $4.50 and as low as $2.55 in the last 52 weeks. As of Tuesday, the stock was trading 16.67% below its 52-week high and 47.06% above its 52-week low. The price-earnings ratio is 4.46.

The BV/S of ASE Technology Holding Co. Ltd. (ASX) has grown 10.40% over the last 10 years. The price-book ratio is 1.35 and the price to tangible book value is 2.22.

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The company, which supplies semiconductor packaging and testing services, has a market cap of $8.85 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 33% margin of safety at $4.13. The share price has been as high as $8 and as low as $3.46 in the last 52 weeks. The stock is currently trading 48.25% below its 52-week high and 19.65% above its 52-week low. The price-earnings ratio is 11.17.

With 1.84% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons' firm with 0.05%.

Itau Unibanco Holding SA's (ITUB) BV/S has grown 10.30% over the past decade. The price-book ratio is 2.25 and the price to tangible book value is 2.63.

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The company, which provides investment banking, credit card, financing, leasing and foreign trade financing services, has a market cap of $82.73 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 24% margin of safety at $8.78. The share price has been as high as $10.80 and as low as $6.57 in the last 52 weeks. The stock is currently trading 18.89% below its 52-week high and 33.40% above its 52-week low. The price-earnings ratio is 12.29.

Fisher is the company's largest guru shareholder with 0.46% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 0.15%.

The BV/S of Energy Company of Parana (ELP) has grown 7.10% over the last 10 years. The price-book ratio is 0.57 and the price to tangible book value is 0.97.

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The company, which supplies electricity and piped gas in Brazil, has a market cap of $2.61 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 13% margin of safety at $9.52. The share price has been as high as $10.49 and as low as $4.70 in the last 52 weeks. The stock is currently trading 9.91% below its 52-week high and 101.06% above its 52-week low. The price-earnings ratio is 9.18.

With 0.18% of outstanding shares, Charles Brandes (Trades, Portfolio) is the company's largest guru shareholder, followed by the Simons' firm with 0.08% and Pioneer Investments (Trades, Portfolio) with 0.08%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.