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Do you consider yourself a value investor, always looking for underestimated and potentially undervalued names? For ideas on how to start your own value search, we ran a screen.

We began by screening the small-cap sector for stocks trading under $5 a share. We then screened for those that also appear undervalued relative to the Graham Number. The Graham Number is 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. Therefore stocks trading at significant discounts to their Graham Number may be undervalued.

Interactive Chart: Press Play to compare changes in market cap over the last two years for six of 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.

List sorted by potential upside implied by the Graham Number.

1. Cumulus Media Inc. (CMLS): Engages in the acquisition, operation, and development of commercial radio stations in the United States. Market cap at $499.68M, most recent closing price at $3.21. Diluted TTM earnings per share at 0.46, and a MRQ book value per share value at 1.94, implies a Graham Number fair value = sqrt(22.5*0.46*1.94) = $4.48. Based on the stock's price at $3.23, this implies a potential upside of 38.73% from current levels.

2. RadioShack Corp. (RSH): Engages in the retail sale of consumer electronic goods and services through its RadioShack store chain and kiosk operations. Market cap at $493.17M, most recent closing price at $4.87. Diluted TTM earnings per share at 0.28, and a MRQ book value per share value at 7.44, implies a Graham Number fair value = sqrt(22.5*0.28*7.44) = $6.85. Based on the stock's price at $5.08, this implies a potential upside of 34.77% from current levels.

3. Amkor Technology, Inc. (AMKR): Provides outsourced semiconductor packaging and test services in the United States and internationally. Market cap at $770.77M, most recent closing price at $4.54. Diluted TTM earnings per share at 0.36, and a MRQ book value per share value at 4.17, implies a Graham Number fair value = sqrt(22.5*0.36*4.17) = $5.81. Based on the stock's price at $4.63, this implies a potential upside of 25.52% from current levels.

4. First Busey Corporation (BUSE): Operates as the bank holding company for Busey Bank that provides various retail and commercial banking products and services to individual, corporate, institutional, and governmental customers in the United States. Market cap at $398.5M, most recent closing price at $4.57. Diluted TTM earnings per share at 0.28, and a MRQ book value per share value at 4.76, implies a Graham Number fair value = sqrt(22.5*0.28*4.76) = $5.48. Based on the stock's price at $4.43, this implies a potential upside of 23.61% from current levels.

5. Lattice Semiconductor Corporation (LSCC): Designs, develops, manufactures, and markets programmable logic products and related software. Market cap at $589.63M, most recent closing price at $4.75. Diluted TTM earnings per share at 0.5, and a MRQ book value per share value at 3.28, implies a Graham Number fair value = sqrt(22.5*0.5*3.28) = $6.07. Based on the stock's price at $4.96, this implies a potential upside of 22.47% from current levels.

6. Harbinger Group Inc. (HRG): Operates as the holding company that focuses on acquiring interests in companies that operate in diverse range of industries. Market cap at $683.11M, most recent closing price at $4.89. Diluted TTM earnings per share at 0.22, and a MRQ book value per share value at 6.54, implies a Graham Number fair value = sqrt(22.5*0.22*6.54) = $5.69. Based on the stock's price at $4.9, this implies a potential upside of 16.12% from current levels.

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

Source: 6 Small Caps Under $5 Undervalued By The Graham Number