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The following is a list of large cap stocks, with market caps north of $10B. All of these stocks are deeply undervalued when comparing the following ratios to their competitors:

  • Trailing Twelve Months Price to Earnings Ratio
  • Trailing Twelve Months Price to Sales Ratio
  • Most Recent Quarter Price to Book Ratio
  • Trailing Twelve Month Price to Cashflow
  • Trailing Twelve Month Price to Free Cashflow

Is this a list of falling knives, or are there some hidden gems in this list? What do you think? Full details below.

Valuation data and industry comps sourced from Reuters, short float and performance data sourced from Finviz.

Interactive Chart: Press Play to compare changes in market cap for the top six names mentioned below. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by market cap.

1. AT&T, Inc. (NYSE:T): Telecom Services. Market cap of $167.43B. TTM Price/Earnings ratio at 7.97 vs. industry average at 12.7. TTM Price/Sales ratio at 1.35 vs. industry average at 2.23. Price/Book ratio at 1.48 vs. industry average at 1.43. TTM Price/Cashflow ratio at 4.09 vs. industry average at 31.62. TTM Price/FreeCashflow ratio at 29.04 vs. industry average at 32.13. Short float at 0.89%, which implies a short ratio of 2.2 days. The stock has gained 18.73% over the last year.

2. Rio Tinto Plc (NYSE:RIO): Steel & Iron Industry. Market cap of $133.81B. TTM Price/Earnings ratio at 14.53 vs. industry average at 30.91. TTM Price/Sales ratio at 2.78 vs. industry average at 87.51. Price/Book ratio at 2.93 vs. industry average at 3.26. TTM Price/Cashflow ratio at 10.1 vs. industry average at 18.25. TTM Price/FreeCashflow ratio at 16.33 vs. industry average at 25.47. Short float at 0.22%, which implies a short ratio of 1.83 days. The stock has gained 34.17% over the last year.

3. Telefonica, S.A. (NYSE:TEF): Telecom Services. Market cap of $113.51B. TTM Price/Earnings ratio at 7.53 vs. industry average at 12.7. TTM Price/Sales ratio at 1.41 vs. industry average at 2.23. Price/Book ratio at 3.73 vs. industry average at 1.43. TTM Price/Cashflow ratio at 4.11 vs. industry average at 31.62. TTM Price/FreeCashflow ratio at 8.17 vs. industry average at 32.13. Short float at 0.13%, which implies a short ratio of 0.23 days. The stock has gained 4.19% over the last year.

4. CNOOC Ltd. (NYSE:CEO): Independent Oil & Gas Industry. Market cap of $106.68B. TTM Price/Earnings ratio at 16.35 vs. industry average at 23.73. TTM Price/Sales ratio at 4.75 vs. industry average at 9.25. Price/Book ratio at 3.67 vs. industry average at 1.23. TTM Price/Cashflow ratio at 10.79 vs. industry average at 17.37. TTM Price/FreeCashflow ratio at 9.52 vs. industry average at 10.47. Short float at 0.23%, which implies a short ratio of 2.18 days. The stock has gained 71.36% over the last year.

5. Merck & Co. Inc. (NYSE:MRK): Drug Manufacturer. Market cap of $104.44B. TTM Price/Earnings ratio at 12.13 vs. industry average at 21.23. TTM Price/Sales ratio at 2.37 vs. industry average at 3.51. Price/Book ratio at 1.88 vs. industry average at 2.58. TTM Price/Cashflow ratio at 7.07 vs. industry average at 9.53. TTM Price/FreeCashflow ratio at 29.11 vs. industry average at 12.77. Short float at 0.69%, which implies a short ratio of 1.3 days. The stock has lost -8.99% over the last year.

6. NTT DOCOMO, Inc. (NYSE:DCM): Wireless Communications Industry. Market cap of $73.56B. TTM Price/Earnings ratio at 11.69 vs. industry average at 13.36. TTM Price/Sales ratio at 1.42 vs. industry average at 1.74. Price/Book ratio at 1.26 vs. industry average at 1.69. TTM Price/Cashflow ratio at 5.01 vs. industry average at 6.94. TTM Price/FreeCashflow ratio at 14.91 vs. industry average at 9.79. Short float at 0.04%, which implies a short ratio of 3.64 days. The stock has gained 16.24% over the last year.

7. Nippon Telegraph & Telephone Corp. (NYSE:NTT): Telecom Services. Market cap of $59.73B. TTM Price/Earnings ratio at 9.39 vs. industry average at 12.7. TTM Price/Sales ratio at 0.48 vs. industry average at 2.23. Price/Book ratio at 0.62 vs. industry average at 1.43. TTM Price/Cashflow ratio at 1.83 vs. industry average at 31.62. TTM Price/FreeCashflow ratio at 3.57 vs. industry average at 32.13. Short float at 0.05%, which implies a short ratio of 1.82 days. The stock has gained 3.63% over the last year.

8. Barclays PLC (NYSE:BCS): Foreign Money Center Banks Industry. Market cap of $58.22B. TTM Price/Earnings ratio at 11.19 vs. industry average at 17.06. TTM Price/Sales ratio at 1.17 vs. industry average at 3.4. Price/Book ratio at 0.73 vs. industry average at 1.01. TTM Price/Cashflow ratio at 6.68 vs. industry average at 4.9. TTM Price/FreeCashflow ratio at 0.54 vs. industry average at 0.82. Short float at 0.28%, which implies a short ratio of 3.01 days. The stock has gained 14.72% over the last year.

9. France Telecom (FTE): Telecom Services. Market cap of $58.12B. TTM Price/Earnings ratio at 14.59 vs. industry average at 12.7. TTM Price/Sales ratio at 0.93 vs. industry average at 2.23. Price/Book ratio at 1.4 vs. industry average at 1.43. TTM Price/Cashflow ratio at 4.36 vs. industry average at 31.62. TTM Price/FreeCashflow ratio at 13.04 vs. industry average at 32.13. Short float at 0.05%, which implies a short ratio of 1.22 days. The stock has gained 2.19% over the last year.

10. American Express Company (NYSE:AXP): Credit Services Industry. Market cap of $55.37B. TTM Price/Earnings ratio at 15.01 vs. industry average at 24.67. TTM Price/Sales ratio at 1.89 vs. industry average at 6.76. Price/Book ratio at 3.48 vs. industry average at 4.17. TTM Price/Cashflow ratio at 11.81 vs. industry average at 26.21. TTM Price/FreeCashflow ratio at 7.95 vs. industry average at 0.8. Short float at 1.13%, which implies a short ratio of 1.43 days. The stock has gained 21.34% over the last year.

11. Amgen Inc. (NASDAQ:AMGN): Biotechnology Industry. Market cap of $53.83B. TTM Price/Earnings ratio at 12.29 vs. industry average at 26.34. TTM Price/Sales ratio at 3.58 vs. industry average at 21.99. Price/Book ratio at 2.25 vs. industry average at 3.32. TTM Price/Cashflow ratio at 9.7 vs. industry average at 15.11. TTM Price/FreeCashflow ratio at 10.64 vs. industry average at 16.25. Short float at 1.62%, which implies a short ratio of 2.46 days. The stock has gained 0.65% over the last year.

Source: 11 Large Cap Stocks With Attractive Valuations