The following list may be interesting to value investors looking for small cap opportunities.

All of the stocks mentioned below are small caps (with market cap just above $100M) that are undervalued when comparing current price to the fair value price, calculated by the Graham Number equation.

Named after the so-called godfather of value investing, Benjamin Graham, the Graham Number is an estimate of the fair value of a stock. It is derived using only two data points: earnings per share and current book value per share.

The Graham Number = Fair Value Of A Stock = Square Root of ((22.5) x (Earnings Per Share) x (Book Value Per Share)).

The math behind the Graham number is relatively straightforward. It is predicated on the belief that the price-to-earnings (P/EPS) ratio should be no more than 15, and the price-to-book value (P/BVPS) ratio should be no more than 1.5.

From that, the product of the two should not be more than 22.5. In other words, (P/EPS of 15) x (P/BVPS of 1.5) = 22.5, from which the equation was created.

We'll use the trailing twelve month diluted EPS and the most recent quarter's BVPS values for the calculation (sourced from Yahoo Finance). Short float and performance data sourced from Finviz.

List sorted by discount from Graham fair value.* 1. Bar Harbor Bankshares (NYSEMKT:BHB):* Regional Bank. Market cap of $110.58M.

BVPS at $27.10, diluted EPS at $2.61. Graham number = sqrt(22.5 x $27.10 x $2.61) = $39.89. Current price at $29.10 (implies an upside of 37.09% from current levels).

Short float at 1.31%, which implies a short ratio of 8.7 days. The stock has gained 9.77% over the last year.

*Other Highlights:*

- The company's capital spending accelerated by 9.52% over the last five years, faster than the industry average of 6.54%. At least theoretically, this makes them more competitive over the coming years, since their operational assets are more up-to-date.

*Personal Services Industry. Market cap of $102.41M.*

**2. Carriage Services Inc. (NYSE:CSV):**BVPS at $6.55, diluted EPS at $0.42. Graham number = sqrt(22.5 x $6.55 x $0.42) = $7.87. Current price at $5.77 (implies an upside of 36.35% from current levels).

Short float at 0.14%, which implies a short ratio of 0.82 days. The stock has gained 32.41% over the last year.

Other Highlights:

Other Highlights:

- The company appears to be undervalued relative to book value. Price/Book ratio at 0.88, much lower than the industry average of 4.57.

- Institutional and mutual fund investors have been net purchasers of the company's shares over the last two quarters, suggesting that the smart money thinks there's more upside to the stock. Institutional investors have been net buyers of 86.8K shares during the most recent quarter, vs. 261.7K net shares purchased in the previous quarter. Mutual fund investors have also been optimistic on the stock. They were net buyers of 73.9K shares during the most recent quarter, vs. 435.2K net shares purchased in the previous quarter.

- Insiders appear to be optimistic on the outlook for the company. On a net basis, they've purchased an average of 44,819 shares per year (over last 2 years).

*Regional Bank. Market cap of $119.03M.*

3. Northrim Bancorp Inc. (NASDAQ:NRIM):3. Northrim Bancorp Inc. (NASDAQ:NRIM):

BVPS at $18.22, diluted EPS at $1.40. Graham number = sqrt(22.5 x $18.22 x $1.40) = $23.96. Current price at $18.50 (implies an upside of 29.50% from current levels).

Short float at 0.14%, which implies a short ratio of 1.39 days. The stock has gained 19.96% over the last year.

*Other Highlights:*

- Judging by trailing twelve month (TTM) ratios like Return on Equity (ROE), Return on Assets (ROA) and Return on Invested Capital (ROI), it's clear that the company's management is doing an excellent job. TTM ROE at 7.88%, lower than the industry average at 10.63%, TTM ROA at .89% vs. the industry average at .79%, and TTM ROI at 6.07%, higher than the industry average at 3.42%. The company also outperformed its industry competitors in terms of the TTM Return on Sales ratio (14.16% vs. the industry average at 13.03%).

- Insiders appear to be optimistic on the outlook for the company. On a net basis, they've purchased an average of 4,139 shares per year (over last 2 years).

*Food Industry. Market cap of $101.78M.*

**4. G. Willi Food-International Ltd. (NASDAQ:WILC):**BVPS at $5.96, diluted EPS at $0.65. Graham number = sqrt(22.5 x $5.96 x $0.65) = $9.34. Current price at $7.50 (implies an upside of 24.48% from current levels).

Short float at 0.25%, which implies a short ratio of 0.64 days. The stock has gained 19.81% over the last year.

*Other Highlights:*

- When compared to industry competitors, the company reported better than average profit margins during the most recent quarter. Gross margins came in at 32.19%, higher than the industry average at 25.75% (most recent quarter, annualized). Operating margin came in at 10.32%, higher than the industry average at 5.3%, while net profit margin came in at 10.32% vs. the industry average at 5.3%.

- The company has low debt and great liquidity, which significantly reduces its risk over the coming months. During the most recent quarter, the total Debt/Assets ratio stood at 2.13% vs. the industry average at 21.94%. Total Debt/Equity came in at 2.63%, lower than the industry average at 59.84%. The company also appears to be more liquid than its competitors. The TTM Current Ratio stands at 4.17, higher than the industry average at 1.13. (Note: All ratios based on the most recent quarter, annualized)

- The company appears to have a very efficient workforce, which should help manage cost pressures going forward. Trailing twelve month Income/Employee stands at $22,154, higher than the industry average at $7,864. The company also outperformed on the Revenue/Employee metric ($285,830 vs. the industry average at $263,040).

*Regional Bank. Market cap of $106.53M.*

5. Hingham Institution for Savings (NASDAQ:HIFS):5. Hingham Institution for Savings (NASDAQ:HIFS):

BVPS at $34.24, diluted EPS at $4.81. Graham number = sqrt(22.5 x $34.24 x $4.81) = $60.87. Current price at $50.25 (implies an upside of 21.14% from current levels).

Short float at 0.14%, which implies a short ratio of 4.33 days. The stock has gained 57.62% over the last year.

*Other Highlights:*

- The company has demonstrated rapid cash flow growth over the last five years, which may lower their risk going forward. Five year average cash flow growth at 9.15%, much higher than the industry average at 1.65%.

*Apparel Footwear & Accessories Industry. Market cap of $101.96M.*

**6. Rocky Brands, Inc. (NASDAQ:RCKY):**BVPS at $13.73, diluted EPS at $0.88. Graham number = sqrt(22.5 x $13.73 x $0.88) = $16.49. Current price at $13.69 (implies an upside of 20.44% from current levels).

Short float at 0.81%, which implies a short ratio of 1.83 days. The stock has gained 52.89% over the last year.

Other Highlights:

Other Highlights:

- Judging by the company's cash holdings, shares look to offer good value at current levels. Price / Cashflow per Share, based on the most recent quarter's cash flow numbers, came in at 8.57, lower than the industry average of 15.78. It's also worth pointing out that the company's trailing twelve month Price / Cashflow per Share came in at 8.21, lower than the industry average of 18.31.

- Institutional and mutual fund investors have been net purchasers of the company's shares over the last two quarters, suggesting that the smart money thinks there's more upside to the stock. Institutional investors have been net buyers of 22.1K shares during the most recent quarter, vs. 71.6K net shares purchased in the previous quarter. Mutual fund investors have also been optimistic on the stock. They were net buyers of 136.8K shares during the most recent quarter, vs. 289.1K net shares purchased in the previous quarter.

- Insiders appear to be optimistic on the outlook for the company. On a net basis, they've purchased an average of 16,300 shares per year (over last 2 years).

**Disclosure:**I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.