4 Oil And Gas Stocks Undervalued To The Graham Number
Do you consider yourself a value investor? If so, we ran a screen looking for potentially undervalued oil and gas drilling stocks that may interest you. [More lists: 7 Rallying Services Stocks Undervalued By The Graham Number]
We screened a universe of oil and gas drilling stocks for those that 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.
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It is based on 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.
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Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.