Do you prefer searching for stocks that appear undervalued? For a closer look at some potentially undervalued names, we ran a screen.

We began by screening for stocks trading under $5 a share with strong liquidity, indicated by current ratios above 3. The current ratio is current assets/current liabilities, so ratios above 3 indicate the company has at least 3 times the liquid assets to cover their short-term liabilities.

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.

*For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.*

*Tool provided by* *Kapitall**.*

Do you think these stocks are being undervalued by the market? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by the Graham Number.

** 1. Furmanite Corporation (NYSE:FRM):** Provides technical services in Europe, North America, South America, Latin America, the Middle East, Africa, and the Asia Pacific. Market cap at $158.69M, most recent closing price at $4.26. Current ratio at 3.57. Diluted TTM earnings per share at 0.51, and a MRQ book value per share value at 3.22, implies a Graham Number fair value = sqrt(22.5*0.51*3.22) = $6.08. Based on the stock's price at $4.41, this implies a potential upside of 37.84% from current levels.

** 2. Hecla Mining Co. (NYSE:HL):** Engages in the discovery, acquisition, development, production, and marketing of silver, gold, lead, and zinc. Market cap at $1.34B, most recent closing price at $4.69. Current ratio at 3.63. Diluted TTM earnings per share at 0.4, and a MRQ book value per share value at 4.03, implies a Graham Number fair value = sqrt(22.5*0.4*4.03) = $6.02. Based on the stock's price at $4.58, this implies a potential upside of 31.49% from current levels.

** 3. Lattice Semiconductor Corporation (NASDAQ:LSCC):** Designs, develops, manufactures, and markets programmable logic products and related software. Market cap at $529.69M, most recent closing price at $4.49. Current ratio at 5.6. 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 $4.67, this implies a potential upside of 30.08% from current levels.

** 4. Synergy Resources Corporation (NYSEMKT:SYRG):** Engages in the acquisition, exploitation, exploration, development, and production of oil and natural gas properties primarily located in the Wattenberg field in Denver-Julesburg Basin in northeast Colorado. Market cap at $131.1M, most recent closing price at $2.55. Current ratio at 3.09. Diluted TTM earnings per share at 0.23, and a MRQ book value per share value at 1.87, implies a Graham Number fair value = sqrt(22.5*0.23*1.87) = $3.11. Based on the stock's price at $2.64, this implies a potential upside of 17.83% from current levels.

** 5. Pendrell Corporation (NASDAQ:PCO):** Provides corporate intellectual property solutions and litigation insights to Fortune 500 companies and technology firms worldwide. Market cap at $284.62M, most recent closing price at $1.09. Current ratio at 4.53. Diluted TTM earnings per share at 0.06, and a MRQ book value per share value at 1.19, implies a Graham Number fair value = sqrt(22.5*0.06*1.19) = $1.27. Based on the stock's price at $1.1, this implies a potential upside of 15.23% 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.