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A Trio of Low Price-Book Ratio Stock Picks to Consider

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GuruFocus.com
·3 min read
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- By Alberto Abaterusso

Picking stocks whose market capitalization surpasses $2 billion and whose price-book ratio is trading below 1.5 could grant investors a higher chance of unearthing value opportunities.

Thus, value investors may be interested in the following stocks, as they meet the above-listed criteria.

Westpac Banking Corp


The first company that meets the criteria is Westpac Banking Corp (NYSE:WBK), an Australian global bank.

The stock price was trading at around $15 per share at close on Dec. 14 for a market capitalization of $54.16 billion and a price-book ratio of 1.10. Westpac's book value was $13.61 per share as of the most recent fiscal year that ended in Sepember.

The stock price has decreased by 10.75% over the past year for a 52-week range of $7.98 to $17.29.

A Trio of Low Price-Book Ratio Stock Picks to Consider
A Trio of Low Price-Book Ratio Stock Picks to Consider

GuruFocus assigned a score of 2 out of 10 to the financial strength rating and of 4 out of 10 to the profitability of the company.

The stock has an overweight recommendation rating and an average target price of $15.21 per share on Wall Street.

Centrais Eletricas Brasileiras SA

The second company that meets the above characteristics is Centrais Eletricas Brasileiras SA (NYSE:EBR), a Brazilian generator and distributor of electricity in Brazil.

The stock price was trading at around $7.46 per share at close on Dec. 14 for a market capitalization of $11.71 billion and a price-book ratio of 0.83. Centrais Eletricas Brasileiras' book value was $8.95 per share as of the most recent quarter.

The stock price has declined by 16.07% over the past year for a 52-week range of $2.96 to $10.10.

A Trio of Low Price-Book Ratio Stock Picks to Consider
A Trio of Low Price-Book Ratio Stock Picks to Consider

GuruFocus assigned a score of 4 out of 10 for both the company's financial strength and its profitability.

The stock has a buy recommendation rating and an average target price of $9.35 per share on Wall Street.

Shinhan Financial Group Co Ltd

The third company that meets the criteria is Shinhan Financial Group Co Ltd (NYSE:SHG), a South Korean bank providing financial services and products in South Korea and internationally.

The stock price was trading at around $30.94 per share on Dec. 14 for a market capitalization of $15.98 billion and a price-book ratio of 0.47. Shinhan's book value was $66.04 per share as of the most recent quarter.

The stock price has declined 19.07% over the past year, determining a 52-week range of $17.09 to $39.74.

A Trio of Low Price-Book Ratio Stock Picks to Consider
A Trio of Low Price-Book Ratio Stock Picks to Consider

GuruFocus assigned a score of 2 out of 10 for the company's financial strength rating and of 5 out of 10 for its profitability rating.

The stock has a buy recommendation rating with an average target price of $36.12 per share on Wall Street.

Disclosure: I have no positions in any securities mentioned in this article.

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This article first appeared on GuruFocus.