The following is a list of the most undervalued large-cap stocks, when comparing the current price against the average analyst target price (used as a proxy for fair value).

Yes, there are many limitations to this approach, and we suspect there are many falling knives here. But the goal here is to give you a starting point for your own analysis.

We last wrote about this screen on November 18, 2010. On that day, the screen produced 20 companies. Since then, 14 out of 20 companies mentioned in that article have outperformed the S&P 500 index (a success rate of 70.00%). The screen averaged a return of 6.06% vs. an index return of 6.25%. Click here to access a full breakdown of the screen's past performance.

Target price data sourced from Finviz. Full analysis below.

*Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.*

The list has been sorted by discount to average target price.

* 1. Visa, Inc. (NYSE:V):* Business Services Industry. Market cap of $60.1B. Current price at $71.87 vs. average analyst target price at $97.33 (implies a discount of 26.16%). Short float at 3.28%, which implies a short ratio of 2.5 days. The stock has lost -16.66% over the last year.

* 2. Companhia de Bebidas Das Americas (ABV):* Brewers Industry. Market cap of $93.06B. Current price at $30.2 vs. average analyst target price at $40.31 (implies a discount of 25.08%). Short float at 0.64%, which implies a short ratio of 1.95 days. The stock has gained 50.86% over the last year.

* 3. Telefonica, S.A. (NYSE:TEF): *Telecom Services. Market cap of $98.61B. Current price at $65.03 vs. average analyst target price at $85.64 (implies a discount of 24.07%). Short float at 0.67%, which implies a short ratio of 1.24 days. The stock has lost -15.51% over the last year.

* 4. Barclays PLC (NYSE:BCS): *Foreign Money Center Banks Industry. Market cap of $52.26B. Current price at $18.22 vs. average analyst target price at $23.34 (implies a discount of 21.94%). Short float at 0.19%, which implies a short ratio of 2.05 days. The stock has lost -14.74% over the last year.

* 5. Credit Suisse Group (NYSE:CS): *Foreign Money Center Banks Industry. Market cap of $49.37B. Current price at $41.83 vs. average analyst target price at $52.45 (implies a discount of 20.25%). Short float at 0.18%, which implies a short ratio of 1.81 days. The stock has lost -20.44% over the last year.

* 6. Abbott Laboratories (NYSE:ABT):* Drug Manufacturer. Market cap of $74.11B. Current price at $47.89 vs. average analyst target price at $59.73 (implies a discount of 19.82%). Short float at 0.55%, which implies a short ratio of 0.99 days. The stock has lost -12.92% over the last year.

* 7. China Life Insurance Co. Ltd. (NYSE:LFC):* Life Insurance Industry. Market cap of $116.02B. Current price at $61.85 vs. average analyst target price at $76.47 (implies a discount of 19.12%). Short float at 0.25%, which implies a short ratio of 2.65 days. The stock has lost -15.54% over the last year.

* 8. China Petroleum & Chemical Corp. (NYSE:SNP):* Independent Oil & Gas Industry. Market cap of $85.55B. Current price at $98.97 vs. average analyst target price at $121.69 (implies a discount of 18.67%). Short float at 0.2%, which implies a short ratio of 1.87 days. The stock has gained 17.42% over the last year.

* 9. BHP Billiton plc (NYSE:BBL): *Industrial Metals & Minerals Industry. Market cap of $215.62B. Current price at $78.3 vs. average analyst target price at $96.27 (implies a discount of 18.67%). Short float at 0.03%, which implies a short ratio of 0.58 days. The stock has gained 16.37% over the last year.

* 10. Banco Bradesco S.A. (NYSE:BBD):* Foreign Regional Banks Industry. Market cap of $70.21B. Current price at $19.87 vs. average analyst target price at $24.36 (implies a discount of 18.43%). Short float at 1%, which implies a short ratio of 2.42 days. The stock has lost -8.97% over the last year.

* 11. China Telecom Corp. Ltd. (NYSE:CHA):* Telecom Services. Market cap of $78.49B. Current price at $54.98 vs. average analyst target price at $67.38 (implies a discount of 18.4%). Short float at 0.06%, which implies a short ratio of 5.69 days. The stock has gained 21.79% over the last year.

* 12. Bank of America Corporation (NYSE:BAC):* Banking Industry. Market cap of $145.23B. Current price at $14.68 vs. average analyst target price at $17.99 (implies a discount of 18.4%). Short float at 1.12%, which implies a short ratio of 0.5 days. The stock has lost -14.69% over the last year.

* 13. Canon Inc. (NYSE:CAJ):* Photographic Equipment & Supplies Industry. Market cap of $62.23B. Current price at $50.32 vs. average analyst target price at $61.55 (implies a discount of 18.25%). Short float at 0.06%, which implies a short ratio of 2.6 days. The stock has gained 20.22% over the last year.

* 14. Teva Pharmaceutical Industries Limited (NYSE:TEVA):* Drug Manufacturer. Market cap of $50.75B. Current price at $53.85 vs. average analyst target price at $65.8 (implies a discount of 18.16%). Short float at 0.91%, which implies a short ratio of 1.27 days. The stock has lost -6.76% over the last year.

* 15. Barrick Gold Corporation (NYSE:ABX): *Gold Industry. Market cap of $48.86B. Current price at $49.94 vs. average analyst target price at $60.8 (implies a discount of 17.86%). Short float at 1.02%, which implies a short ratio of 1.2 days. The stock has gained 18.94% over the last year.

* 16. ABB Ltd. (NYSE:ABB):* Industrial Electrical Equipment Industry. Market cap of $50.02B. Current price at $22.26 vs. average analyst target price at $27.1 (implies a discount of 17.86%). Short float at 0.19%, which implies a short ratio of 1.81 days. The stock has gained 8.36% over the last year.

* 17. Ita (NYSE:ITUB):* Foreign Money Center Banks Industry. Market cap of $105.53B. Current price at $23.54 vs. average analyst target price at $28.57 (implies a discount of 17.61%). Short float at 0.42%, which implies a short ratio of 1.06 days. The stock has gained 4.67% over the last year.

* 18. JPMorgan Chase & Co. (NYSE:JPM):* Money Center Banks Industry. Market cap of $169.66B. Current price at $43.61 vs. average analyst target price at $52.64 (implies a discount of 17.15%). Short float at 1%, which implies a short ratio of 1.03 days. The stock has lost -2.05% over the last year.

* 19. Eni SpA (NYSE:E): *Major Integrated Oil & Gas Industry. Market cap of $88.12B. Current price at $44.27 vs. average analyst target price at $53.42 (implies a discount of 17.13%). Short float at 0.07%, which implies a short ratio of 1.45 days. The stock has lost -12.73% over the last year.

* 20. Petroleo Brasileiro (NYSE:PBR):* Oil & Gas Drilling & Exploration Industry. Market cap of $232.19B. Current price at $37.02 vs. average analyst target price at $44.14 (implies a discount of 16.13%). Short float at 0.54%, which implies a short ratio of 1.07 days. The stock has lost -24.98% over the last year.

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