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Do you consider yourself a value investor? If so, we ran a screen looking for potentially undervalued oil and gas drilling stocks that may interest you.

We screened a universe of oil and gas drilling stocks for those that appear undervalued relative to the Graham Number. The Graham Number is a measure of maximum fair value created by the "godfather of value investing," Benjamin Graham.

It is based on a stock's EPS and book value per share (BVPS).

Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS)

The equation assumes that P/E should not be higher than 15, and P/BV should not be higher than 1.5. Stocks trading well below their Graham Number may be undervalued.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by the Graham Number.

1. Helmerich & Payne Inc. (NYSE:HP): Engages in the contract drilling of oil and gas wells in the United States and internationally. Market cap at $5.43B, most recent closing price at $51.39. Diluted TTM earnings per share at 5.34, and a MRQ book value per share value at 36.28, implies a Graham Number fair value = sqrt(22.5*5.34*36.28) = $66.02. Based on the stock's price at $51.59, this implies a potential upside of 27.98% from current levels.

2. Atwood Oceanics, Inc. (NYSE:ATW): Engages in offshore drilling, and the completion of exploratory and developmental oil and gas wells. Market cap at $3.B, most recent closing price at $45.80. Diluted TTM earnings per share at 4.14, and a MRQ book value per share value at 29.63, implies a Graham Number fair value = sqrt(22.5*4.14*29.63) = $52.54. Based on the stock's price at $45.02, this implies a potential upside of 16.69% from current levels.

3. Unit Corp. (NYSE:UNT): Engages in onshore contract drilling of oil and gas wells (for its own account as well as for other companies), exploration and production of oil and gas, and the gathering and transportation of natural gas primarily in the U.S. Market cap at $2.15B, most recent closing price at $44.28. Diluted TTM earnings per share at 2.73, and a MRQ book value per share value at 41.78, implies a Graham Number fair value = sqrt(22.5*2.73*41.78) = $50.66. Based on the stock's price at $43.15, this implies a potential upside of 17.4% from current levels.

*BVPS and EPS data sourced from Yahoo Finance; all other data sourced from Finviz.

Source: 3 Oil And Gas Drilling Stocks Undervalued By The Graham Number