Do you worry about risk when choosing among stocks? One idea is to consider a stock's recent trading volatility.

We ran a screen on the large-cap sector for stocks with low volatility over the last month, with less than 2% average intra-day volatility over the last 30 days.

We then screened these names for those undervalued by the Graham Number, a measure of maximum fair value created by the "godfather of value investing" Benjamin Graham.

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 market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.*

Do you think these names are less risky and should be trading higher? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by Graham Number.

* 1. ConocoPhillips (COP):* Operates as an integrated energy company worldwide. Market cap at $94.54B. Price at $73.50. Average intra-day volatility over the last month at 1.45%. Diluted TTM earnings per share at 8.97, and a MRQ book value per share value at 50.73, implies a Graham Number fair value = sqrt(22.5*8.97*50.73) = $101.19. Based on the stock's price at $73.63, this implies a potential upside of 37.42% from current levels.

** 2. Northrop Grumman Corporation (NOC):** Provides products, services, and solutions in aerospace, electronics, information systems, shipbuilding, and technical service sectors. Market cap at $15.63B. Price at $62.18. Average intra-day volatility over the last month at 1.24%. Diluted TTM earnings per share at 7.52, and a MRQ book value per share value at 40.71, implies a Graham Number fair value = sqrt(22.5*7.52*40.71) = $82.99. Based on the stock's price at $60.81, this implies a potential upside of 36.48% from current levels.

** 3. Loews Corporation (L):** Operates primarily as a commercial property and casualty insurance company in the United States. Market cap at $15.84B. Price at $39.79. Average intra-day volatility over the last month at 1.27%. Diluted TTM earnings per share at 2.63, and a MRQ book value per share value at 47.49, implies a Graham Number fair value = sqrt(22.5*2.63*47.49) = $53.01. Based on the stock's price at $38.91, this implies a potential upside of 36.24% from current levels.

* 4. PPL Corporation (PPL):* Generates and sells electricity; and delivers natural gas to approximately 5.3 million utility customers primarily in the northeastern and northwestern US. Market cap at $15.70B. Price at $26.98. Average intra-day volatility over the last month at 1.20%. Diluted TTM earnings per share at 2.7, and a MRQ book value per share value at 18.72, implies a Graham Number fair value = sqrt(22.5*2.7*18.72) = $33.72. Based on the stock's price at $26.77, this implies a potential upside of 25.97% from current levels.

** 5. Public Service Enterprise Group Inc. (PEG):** Operates in the energy industry primarily in the northeastern and mid Atlantic United States. Market cap at $15.34B. Price at $30.25. Average intra-day volatility over the last month at 1.27%. Diluted TTM earnings per share at 2.96, and a MRQ book value per share value at 20.3, implies a Graham Number fair value = sqrt(22.5*2.96*20.3) = $36.77. Based on the stock's price at $29.69, this implies a potential upside of 23.84% from current levels.

** 6. The Chubb Corporation (CB):** Provides property and casualty insurance to businesses and individuals. Market cap at $19.25B. Price at $71.21. Average intra-day volatility over the last month at 1.19%. Diluted TTM earnings per share at 5.76, and a MRQ book value per share value at 57.16, implies a Graham Number fair value = sqrt(22.5*5.76*57.16) = $86.07. Based on the stock's price at $69.66, this implies a potential upside of 23.56% from current levels.

* 7. The Travelers Companies, Inc. (TRV):* Provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. Market cap at $23.43B. Price at $59.88. Average intra-day volatility over the last month at 1.21%. Diluted TTM earnings per share at 3.37, and a MRQ book value per share value at 62.31, implies a Graham Number fair value = sqrt(22.5*3.37*62.31) = $68.74. Based on the stock's price at $58.12, this implies a potential upside of 18.27% from current levels.

** 8. Sempra Energy (SRE):** Engages in the development of energy infrastructure, operation of utilities, and provision of energy-related products and services worldwide. Market cap at $15.42B. Price at $63.65. Average intra-day volatility over the last month at 1.46%. Diluted TTM earnings per share at 5.62, and a MRQ book value per share value at 41.01, implies a Graham Number fair value = sqrt(22.5*5.62*41.01) = $72.01. Based on the stock's price at $62.39, this implies a potential upside of 15.42% from current levels.

*BVPS and EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

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