The following is a list of stocks that are in rally mode, i.e. trading above their 20-day, 50-day and 200-day moving averages. These names also appear to be undervalued when comparing the current price to the fair value price, calculated by the Graham Number equation.

Benjamin Graham, the man who developed this equation, was a former mentor of Warren Buffett and is the so-called godfather of value investing. ??

The Graham Number, or the maximum price an investor should pay for a stock, is derived using only two data points: current 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 of the Graham number 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. Therefore we only include companies that meet both of these criteria.??

From these criteria, 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.??

Do you think that these companies could still be undervalued after this recent rally? Full details below.

Graham input data sourced from Yahoo Finance, short float and performance data sourced from Finviz.

* click for expanded image*

List sorted by the potential upside to the Graham fair value.

* 1. Great Plains Energy Incorporated (NYSE:GXP):* Electric Utilities Industry. Market cap of $2.66B. The stock is currently trading 1.17% above its 20-day MA, 1.05% above its 50-day MA, and 7.2% above its 200-day MA. BVPS at $21.33, diluted EPS at $1.53. Graham number = sqrt(22.5 x $21.33 x $1.53) = $27.1. Current price at $19.68 (implies a potential upside of 37.69%).

* 2. W.R. Berkley Corporation (NYSE:WRB):* Property & Casualty Insurance Industry. Market cap of $4.27B. The stock is currently trading 2.47% above its 20-day MA, 6.21% above its 50-day MA, and 10.77% above its 200-day MA. BVPS at $26.36, diluted EPS at $2.9. Graham number = sqrt(22.5 x $26.36 x $2.9) = $41.47. Current price at $30.28 (implies a potential upside of 36.96%).

* 3. URS Corporation (NYSE:URS): *Technical Services Industry. Market cap of $3.74B. The stock is currently trading 0.44% above its 20-day MA, 5.45% above its 50-day MA, and 12.92% above its 200-day MA. BVPS at $50.3, diluted EPS at $3.54. Graham number = sqrt(22.5 x $50.3 x $3.54) = $63.3. Current price at $46.35 (implies a potential upside of 36.56%).

* 4. Seneca Foods Corp. (NASDAQ:SENEA):* Processed & Packaged Goods Industry. Market cap of $335.65M. The stock is currently trading 2.28% above its 20-day MA, 4.87% above its 50-day MA, and 5.26% above its 200-day MA. BVPS at $29.66, diluted EPS at $2.16. Graham number = sqrt(22.5 x $29.66 x $2.16) = $37.97. Current price at $28.59 (implies a potential upside of 32.8%).

* 5. SK Telecom Co. Ltd. (NYSE:SKM):* Wireless Communications Industry. Market cap of $12.20B. The stock is currently trading 6.62% above its 20-day MA, 5.28% above its 50-day MA, and 8.85% above its 200-day MA. BVPS at $15.3, diluted EPS at $1.69. Graham number = sqrt(22.5 x $15.3 x $1.69) = $24.12.

* 6. First Citizens Bancshares Inc. (NASDAQ:FCNCA)*: Regional Bank. Market cap of $2.16B. The stock is currently trading 2.84% above its 20-day MA, 4.75% above its 50-day MA, and 8.92% above its 200-day MA. BVPS at $166.08, diluted EPS at $18.5. Graham number = sqrt(22.5 x $166.08 x $18.5) = $262.93. Current price at $207.12 (implies a potential upside of 26.94%).

* 7. FPIC Insurance Group Inc. (NASDAQ:FPIC)*: Property & Casualty Insurance Industry. Market cap of $347.01M. The stock is currently trading 3.37% above its 20-day MA, 3.02% above its 50-day MA, and 13.38% above its 200-day MA. BVPS at $31.24, diluted EPS at $3.09. Graham number = sqrt(22.5 x $31.24 x $3.09) = $46.6. Current price at $37.76 (implies a potential upside of 23.42%).

* 8. Lifepoint Hospitals Inc. (NASDAQ:LPNT):* Hospitals Industry. Market cap of $2.05B. The stock is currently trading 7.16% above its 20-day MA, 8.64% above its 50-day MA, and 15.72% above its 200-day MA. BVPS at $36.65, diluted EPS at $2.91. Graham number = sqrt(22.5 x $36.65 x $2.91) = $48.99. Current price at $39.9 (implies a potential upside of 22.77%).

* 9. Pengrowth Energy Trust (NYSE:PGH):* Oil & Gas Drilling & Exploration Industry. Market cap of $4.19B. The stock is currently trading 1.62% above its 20-day MA, 0.73% above its 50-day MA, and 16.67% above its 200-day MA. BVPS at $11.15, diluted EPS at $0.98. Graham number = sqrt(22.5 x $11.15 x $0.98) = $15.68. Current price at $12.83 (implies a potential upside of 22.21%).

* 10. DTE Energy Co. (NYSE:DTE): *Electric Utilities Industry. Market cap of $8.33B. The stock is currently trading 4.54% above its 20-day MA, 5.64% above its 50-day MA, and 7.36% above its 200-day MA. BVPS at $39.67, diluted EPS at $3.74. Graham number = sqrt(22.5 x $39.67 x $3.74) = $57.78. Current price at $49.17 (implies a potential upside of 17.51%).

* 11. Amerisafe, Inc. (NASDAQ:AMSF):* Property & Casualty Insurance Industry. Market cap of $396.43M. The stock is currently trading 10.7% above its 20-day MA, 15.94% above its 50-day MA, and 17.87% above its 200-day MA. BVPS at $17.26, diluted EPS at $1.63. Graham number = sqrt(22.5 x $17.26 x $1.63) = $25.16. Current price at $21.51 (implies a potential upside of 16.97%).

* 12. Avista Corp. (NYSE:AVA):* Diversified Utilities Industry. Market cap of $1.33B. The stock is currently trading 2.24% above its 20-day MA, 2.22% above its 50-day MA, and 10.45% above its 200-day MA. BVPS at $19.71, diluted EPS at $1.65. Graham number = sqrt(22.5 x $19.71 x $1.65) = $27.05. Current price at $23.18 (implies a potential upside of 16.7%).

* 13. CVS Caremark Corporation (NYSE:CVS)*: Drug Stores Industry. Market cap of $46.61B. The stock is currently trading 3.42% above its 20-day MA, 0.16% above its 50-day MA, and 7.98% above its 200-day MA. BVPS at $27.66, diluted EPS at $2.49. Graham number = sqrt(22.5 x $27.66 x $2.49) = $39.37. Current price at $34.07 (implies a potential upside of 15.54%).

* 14. Ensco plc (NYSE:ESV):* Oil & Gas Drilling & Exploration Industry. Market cap of $8.0B. The stock is currently trading 3.61% above its 20-day MA, 5.07% above its 50-day MA, and 21.5% above its 200-day MA. BVPS at $41.69, diluted EPS at $4.07. Graham number = sqrt(22.5 x $41.69 x $4.07) = $61.79. Current price at $55.77 (implies a potential upside of 10.79%).

* 15. American Electric Power Co., Inc. (NYSE:AEP):* Electric Utilities Industry. Market cap of $17.45B. The stock is currently trading 1.87% above its 20-day MA, 1.92% above its 50-day MA, and 4.61% above its 200-day MA. BVPS at $28.33, diluted EPS at $2.53. Graham number = sqrt(22.5 x $28.33 x $2.53) = $40.16. Current price at $36.3 (implies a potential upside of 10.63%).

* 16. Westar Energy, Inc. (NYSE:WR)*: Diversified Utilities Industry. Market cap of $3.02B. The stock is currently trading 3.48% above its 20-day MA, 4.4% above its 50-day MA, and 11.83% above its 200-day MA. BVPS at $21.25, diluted EPS at $1.8. Graham number = sqrt(22.5 x $21.25 x $1.8) = $29.34. Current price at $26.58 (implies a potential upside of 10.37%).

* 17. Northwestern Corp. (NYSE:NWE):* Diversified Utilities Industry. Market cap of $1.11B. The stock is currently trading 4.57% above its 20-day MA, 5.44% above its 50-day MA, and 8.98% above its 200-day MA. BVPS at $22.65, diluted EPS at $2.14. Graham number = sqrt(22.5 x $22.65 x $2.14) = $33.02. Current price at $30.51 (implies a potential upside of 8.24%).

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