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Do you like to search for stocks that may be trading below their fair value? For ideas on how to start your search, we ran a screen you may be interested in.

We compiled a list of companies that use or produce sources of clean energy for those that are trading at significant discounts to their Graham Number.

The Graham Number was created by the "godfather of value investing" Benjamin Graham as a calculation for maximum fair value. It is based off of 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.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

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

1. Applied Materials Inc. (NASDAQ:AMAT): Provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic, and related industries worldwide. Diluted TTM earnings per share at 1.45, and a MRQ book value per share value at 6.74, implies a Graham Number fair value = sqrt(22.5*1.45*6.74) = $14.83. Based on the stock's price at $12.89, this implies a potential upside of 15.04% from current levels.

2. Ashland Inc. (NYSE:ASH): Operates as a specialty chemicals company in the United States and internationally. Diluted TTM earnings per share at 4.69, and a MRQ book value per share value at 51.91, implies a Graham Number fair value = sqrt(22.5*4.69*51.91) = $74.01. Based on the stock's price at $64.34, this implies a potential upside of 15.03% from current levels.

3. Constellation Energy Group, Inc. (NYSE:CEG): Operates as an energy company in the United States and Canada. Diluted TTM earnings per share at 2.01, and a MRQ book value per share value at 39.54, implies a Graham Number fair value = sqrt(22.5*2.01*39.54) = $42.29. Based on the stock's price at $36.65, this implies a potential upside of 15.38% from current levels.

4. IXYS Corp. (NASDAQ:IXYS): Engages in the development, manufacture, and marketing of power semiconductors, advanced mixed signal integrated circuits, application specific integrated circuits, and systems and radio frequency semiconductors. Diluted TTM earnings per share at 1.31, and a MRQ book value per share value at 7.89, implies a Graham Number fair value = sqrt(22.5*1.31*7.89) = $15.25. Based on the stock's price at $12.59, this implies a potential upside of 21.13% from current levels.

5. Sims Metal Management Limited (SMS): Operates in the metal recycling industry. Diluted TTM earnings per share at 1, and a MRQ book value per share value at 15.18, implies a Graham Number fair value = sqrt(22.5*1*15.18) = $18.48. Based on the stock's price at $15.26, this implies a potential upside of 21.11% from current levels.

*Written by Alexander Crawford. BVPS and EPS data sourced from Yahoo! Finance.

Source: 5 Clean Energy Stocks Undervalued By The Graham Number