Do you worry about stock volatility when choosing among names? One idea is to consider a stock's recent trading volatility. With this idea in mind, we ran a screen.

We began by screening the large-cap sector for low-volatility stocks, with average intra-day volatility over the last month under 2% (meaning, on average, these stocks have traded within a 2% range each day).

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 offer less risk? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by the Graham Number.

** 1. Chevron Corporation (NYSE:CVX):** Engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. Market cap at $197.09B, most recent closing price at $99.91. Average intra-day volatility over the last month at 1.76%. Diluted TTM earnings per share at 13.62, and a MRQ book value per share value at 63.61, implies a Graham Number fair value = sqrt(22.5*13.62*63.61) = $139.62. Based on the stock's price at $100.84, this implies a potential upside of 38.46% from current levels.

** 2. Loews Corporation (NYSE:L):** Operates primarily as a commercial property and casualty insurance company in the United States. Market cap at $15.68B, most recent closing price at $39.52. Average intra-day volatility over the last month at 1.63%. Diluted TTM earnings per share at 2.62, and a MRQ book value per share value at 48.96, implies a Graham Number fair value = sqrt(22.5*2.62*48.96) = $53.72. Based on the stock's price at $39.87, this implies a potential upside of 34.75% from current levels.

** 3. American Electric Power Co., Inc. (NYSE:AEP):** Engages in the generation, transmission, and distribution of electric power to retail customers. Market cap at $19.16B, most recent closing price at $39.57. Average intra-day volatility over the last month at 1.08%. Diluted TTM earnings per share at 4.09, and a MRQ book value per share value at 30.69, implies a Graham Number fair value = sqrt(22.5*4.09*30.69) = $53.14. Based on the stock's price at $39.72, this implies a potential upside of 33.8% from current levels.

** 4. PPL Corporation (NYSE: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 $16.03B, most recent closing price at $27.64. Average intra-day volatility over the last month at 1.19%. Diluted TTM earnings per share at 2.83, and a MRQ book value per share value at 19.44, implies a Graham Number fair value = sqrt(22.5*2.83*19.44) = $35.18. Based on the stock's price at $27.88, this implies a potential upside of 26.19% from current levels.

** 5. Time Warner Inc. (NYSE:TWX):** Operates as a media and entertainment company in the United States and internationally. Market cap at $33.17B, most recent closing price at $34.56. Average intra-day volatility over the last month at 1.89%. Diluted TTM earnings per share at 2.72, and a MRQ book value per share value at 30.92, implies a Graham Number fair value = sqrt(22.5*2.72*30.92) = $43.50. Based on the stock's price at $35.23, this implies a potential upside of 23.48% from current levels.

** 6. The Allstate Corporation (NYSE:ALL):** Engages in the personal property and casualty insurance, life insurance, retirement, and investment products businesses primarily in the United States. Market cap at $16.66B, most recent closing price at $33.90. Average intra-day volatility over the last month at 1.90%. Diluted TTM earnings per share at 2.01, and a MRQ book value per share value at 38.91, implies a Graham Number fair value = sqrt(22.5*2.01*38.91) = $41.95. Based on the stock's price at $34.31, this implies a potential upside of 22.26% from current levels.

** 7. M&T Bank Corporation (NYSE:MTB):** Operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. Market cap at $9.9B, most recent closing price at $78.20. Average intra-day volatility over the last month at 1.85%. Diluted TTM earnings per share at 6.26, and a MRQ book value per share value at 67.67, implies a Graham Number fair value = sqrt(22.5*6.26*67.67) = $97.63. Based on the stock's price at $79.93, this implies a potential upside of 22.14% from current levels.

** 8. The Chubb Corporation (NYSE:CB):** Provides property and casualty insurance to businesses and individuals. Market cap at $19.08B, most recent closing price at $70.69. Average intra-day volatility over the last month at 1.44%. Diluted TTM earnings per share at 5.86, and a MRQ book value per share value at 57.38, implies a Graham Number fair value = sqrt(22.5*5.86*57.38) = $86.98. Based on the stock's price at $71.54, this implies a potential upside of 21.58% from current levels.

** 9. General Dynamics Corp. (NYSE:GD):** Provides business aviation, combat vehicles, weapons systems and munitions, military and commercial shipbuilding, and communications and information technology products and services worldwide. Market cap at $22.99B, most recent closing price at $63.74. Average intra-day volatility over the last month at 1.76%. Diluted TTM earnings per share at 6.8, and a MRQ book value per share value at 38.42, implies a Graham Number fair value = sqrt(22.5*6.8*38.42) = $76.67. Based on the stock's price at $64.06, this implies a potential upside of 19.68% from current levels.

** 10. Entergy Corporation (NYSE:ETR):** Operates as an integrated energy company in the United States. Market cap at $11.71B, most recent closing price at $66.06. Average intra-day volatility over the last month at 1.20%. Diluted TTM earnings per share at 5.32, and a MRQ book value per share value at 50.32, implies a Graham Number fair value = sqrt(22.5*5.32*50.32) = $77.61. Based on the stock's price at $66.28, this implies a potential upside of 17.09% from current levels.

** 11. Public Service Enterprise Group Inc. (NYSE:PEG):** Operates in the energy industry primarily in the northeastern and mid Atlantic United States. Market cap at $16.1B, most recent closing price at $31.83. Average intra-day volatility over the last month at 1.34%. Diluted TTM earnings per share at 2.89, and a MRQ book value per share value at 21, implies a Graham Number fair value = sqrt(22.5*2.89*21) = $36.95. Based on the stock's price at $31.93, this implies a potential upside of 15.73% 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.