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Here we present 11 undervalued stocks, according to PEG and P/FCF ratios. Additionally, all of these companies have conservative accounting practices, according to the ratings developed by forensic accounting firm Audit Integrity.

Audit Integrity uses the Accounting and Governance Risk (AGR) rating to measure of the transparency and reliability of a corporation’s financial reporting and governance practices. The closer the score is to 100, the more conservative the company's accounting practices.

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All the companies in this list have high AGR scores and are categorized by Audit Integrity as “Conservative". If you're interested in value ideas, the list might offer an interesting starting point…

List sorted by AGR score.

1. Transatlantic Holdings Inc. (NYSE:TRH): Property & Casualty Insurance Industry. Market cap of $3.09B. PEG at 0.99. P/FCF at 3.06. According to Audit Integrity, the company follows conservative accounting practices, with an AGR score of 100. The stock has had a couple of great days, gaining 5.14% over the last week.

2. Boise Inc. (NYSE:BZ): Paper & Paper Products Industry. Market cap of $749.72M. PEG at 0.63. P/FCF at 4.21. According to Audit Integrity, the company follows conservative accounting practices, with an AGR score of 99. The stock is a short squeeze candidate, with a short float at 30.32% (equivalent to 9.4 days of average volume). The stock has gained 32.31% over the last year.

3. Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD): Heavy Construction Industry. Market cap of $456.61M. PEG at 0.4. P/FCF at 4.84. According to Audit Integrity, the company follows conservative accounting practices, with an AGR score of 97. The stock is a short squeeze candidate, with a short float at 5.05% (equivalent to 5.55 days of average volume). The stock has had a couple of great days, gaining 5.26% over the last week.

4. James River Coal Co. (JRCC): Industrial Metals & Minerals Industry. Market cap of $689.78M. PEG at 0.88. P/FCF at 9.37. According to Audit Integrity, the company follows conservative accounting practices, with an AGR score of 96. Exhibiting strong upside momentum--currently trading 6.63% above its SMA20, 11.4% above its SMA50, and 24.51% above its SMA200. The stock has had a good month, gaining 22.62%.

5. Southwest Airlines Co. (NYSE:LUV): Regional Airlines Industry. Market cap of $9.31B. PEG at 0.98. P/FCF at 8.83. According to Audit Integrity, the company follows conservative accounting practices, with an AGR score of 96. The stock has lost 7.22% over the last year.

6. LTX-Credence Corporation (LTXC): Semiconductor Equipment & Materials Industry. Market cap of $448.60M. PEG at 0.63. P/FCF at 6.62. According to Audit Integrity, the company follows conservative accounting practices, with an AGR score of 95. The stock has lost 1.2% over the last year.

7. Delphi Financial Group, Inc. (NYSE:DFG): Life Insurance Industry. Market cap of $1.72B. PEG at 0.99. P/FCF at 5.07. According to Audit Integrity, the company follows conservative accounting practices, with an AGR score of 94. The stock has gained 21.98% over the last year.

8. CNO Financial Group, Inc. (NYSE:CNO): Accident & Health Insurance Industry. Market cap of $1.94B. PEG at 0.72. P/FCF at 2.64. According to Audit Integrity, the company follows conservative accounting practices, with an AGR score of 93. The stock is a short squeeze candidate, with a short float at 8.09% (equivalent to 10.18 days of average volume). Exhibiting strong upside momentum--currently trading 7.58% above its SMA20, 12.41% above its SMA50, and 28.88% above its SMA200.

9. Insight Enterprises Inc. (NASDAQ:NSIT): Application Software Industry. Market cap of $802.03M. PEG at 0.72. P/FCF at 10. According to Audit Integrity, the company follows conservative accounting practices, with an AGR score of 93. This is a risky stock that is significantly more volatile than the overall market (beta = 2.62). Might be undervalued at current levels, with a PEG ratio at 0.72, and P/FCF ratio at 10.. The stock has gained 13.37% over the last year.

10. Encore Capital Group, Inc. (NASDAQ:ECPG): Credit Services Industry. Market cap of $607.95M. PEG at 0.91. P/FCF at 8.6. According to Audit Integrity, the company follows conservative accounting practices, with an AGR score of 91. This is a risky stock that is significantly more volatile than the overall market (beta = 2.18). Might be undervalued at current levels, with a PEG ratio at 0.91, and P/FCF ratio at 8.6. The stock has gained 46.98% over the last year.

11. Unum Group (NYSE:UNM): Accident & Health Insurance Industry. Market cap of $8.21B. PEG at 0.8. P/FCF at 7.59. According to Audit Integrity, the company follows conservative accounting practices, with an AGR score of 90. Might be undervalued at current levels, with a PEG ratio at 0.8, and P/FCF ratio at 7.59. The stock has gained 4.82% over the last year.

*AGR scores sourced from Audit Integrity, PEG and P/FCF ratios sourced from Finviz.

Source: 11 Undervalued Stocks With Conservative Accounting Practices