7 Undervalued Stocks With Rising Book Values

The following companies have grown their book values per share (BV/S) over the last 10 years.

BV/S is calculated as total equity minus preferred stock, divided by shares outstanding (EOP). Theoretically, it is what shareholders will receive if the 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 American Public Education Inc. (NASDAQ:APEI) has grown 29% over the last 10 years. The price-book (P/B) ratio is 1.4, and the price to tangible book value is 1.6.

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According to the discounted cash flow (DCF) calculator, the stock is undervalued and trading with a margin of safety of 23% at $23.05. The price has been as high as $30.78 and as low as $14.75 in the last 52 weeks. It is currently 25.11% below its 52-week high and above 56.27% its 52-week low. The price-earnings (P/E) ratio is 20.40.

The company provides online and on-campus postsecondary education through American Public University System Inc. and National Education Seminars Inc.

Jim Simons (Trades, Portfolio) is the company’s largest shareholder among the gurus with 5.03% of outstanding shares, followed by Private Capital (Trades, Portfolio) with 1.5%, Chuck Royce (Trades, Portfolio) with 0.71%, Barrow, Hanley, Mewhinney & Strauss with 0.47%, Paul Tudor Jones (Trades, Portfolio) with 0.11% and Joel Greenblatt (Trades, Portfolio) with 0.07%.

The BV/S of Sturm Ruger & Co. Inc. (NYSE:RGR) has grown 15% over the last 10 years. The P/B ratio is 4.5, and the price to tangible book value is 4.5.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 56% at $57.45. The price has been as high as $70.02 and as low as $47.15 in the last 52 weeks. It is currently 17.95% below its 52-week high and 21.85% above its 52-week low. The P/E ratio is 12.57.

Sturm Ruger produces firearms. The company also manufactures and sells investment castings made from steel alloys for internal use in the firearms segment.

The company’s largest shareholder among the gurus is Simons with 0.62% of outstanding shares, followed by Mario Cibelli (Trades, Portfolio) with 0.14% and Jones with 0.05%.

The BV/S of Express Scripts Holding Co. (NASDAQ:ESRX) has grown 15% over the last 10 years. The P/B ratio is 4.5, and the price to tangible book value is 4.5.

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 47% at $57.45. The price has been as high as $79.24 and as low as $57.80 in the last 52 weeks. It is currently 21.13% below its 52-week high and 8.13% above its 52-week low. The P/E ratio is 11.41.

Express Scripts is a pharmacy benefit manager in the U.S. It offers health care management and administration services, including managed care organizations, health insurers, workers’ compensation plans and government health programs.

Dodge & Cox is the largest shareholder of the company among the gurus with 4.85% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.97%, Chris Davis (Trades, Portfolio) with 0.72%, Charles Brandes (Trades, Portfolio) with 0.4%, Manning & Napier Advisors Inc. with 0.37%, Glenn Greenberg (Trades, Portfolio) with 0.24%, Simons with 0.22% and Seth Klarman (Trades, Portfolio) with 0.21%.

The BV/S of Discover Financial Services (NYSE:DFS) has grown 11% over the last 10 years. The P/B ratio is 2.2, and the price to tangible book value is 2.3.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 45% at $62.53. The price has been as high as $74.33 and as low as $53.91 in the last 52 weeks. It is currently 15.88% below its 52-week high and 15.99% above its 52-week low. The P/E ratio is 10.67.

Discover Financial provides banking services such as accepting deposits, offering credit cards, residential mortgage, loans and other banking facilities to its customers.

PRIMECAP Management (Trades, Portfolio) is the largest shareholder of the company among the gurus with 1.76% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.17%, NWQ Managers (Trades, Portfolio) with 0.48%, Pioneer Investments (Trades, Portfolio) with 0.33%, Simons with 0.15%, Jeremy Grantham (Trades, Portfolio) with 0.07% and Diamond Hill Capital (Trades, Portfolio) with 0.06%.

The BV/S of Eagle Bancorp Inc. (NASDAQ:EGBN) has grown 15% over the last 10 years. The P/B ratio is 2.4, and the price to tangible book value is 2.7.

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 26% at $63.20. The price has been as high as $65 and as low as $47.20 in the last 52 weeks. It is currently 2.77% below its 52-week high and 33.90% above its 52-week low. The P/E ratio is 20.59.

Eagle Bancorp is a financial services company. Through its subsidiary, EagleBank, it provides community banking solutions to businesses and professionals.

The company’s largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 0.22% of outstanding shares.

The BV/S of Usana Health Sciences Inc. (NYSE:USNA) has grown 30% over the last 10 years. The P/B ratio is 4.4, and price to tangible book value is 5.1.

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 25% at $63.40. The price has been as high as $75 and as low as $52.55 in the last 52 weeks. It is currently 15.47% below its 52-week high and 20.65% above its 52-week low. The P/E ratio is 15.97.

Usana manufactures health products. Its key products include nutritional and personal care products.

With 7.18% of outstanding shares, Simons is the company’s largest guru shareholder, followed by Jones with 0.06%.

The BV/S of Nu Skin Enterprises Inc. (NYSE:NUS) has grown 15% over the last 10 years. The P/B ratio is 4.9, and price to tangible book value is 6.6.

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 24% at $64.10. The price has been as high as $66.04 and as low as $46.35 in the last 52 weeks. It is currently 2.94% below its 52-week high and 38.30% above its 52-week low. The P/E ratio is 21.51.

The company manufactures consumer products, including anti-aging skin products, body care, hair care, men’s care, oral care, sun protection and cosmetics, under the Nu Skin and Pharmanex brands.

Steven Cohen (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.32% of outstanding shares, followed by Simons with 0.09%, Royce with 0.07%, Caxton Associates (Trades, Portfolio) with 0.01% and Jones with 0.01%.

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

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