79 Low P/B Ratio Stocks Looking for growing, low risk P/B ratio stocks to buy in 2020? Below are 79 stocks you'll love, updated daily.
Awesome Stocks With Low Price to Book Ratios
Value investors frequently screen for undervalued stocks using the Price to Book Value (P/BV) ratio.
This screen identifies companies that are valued at a low multiple of the book value of the company’s equity, which may indicate that a stock is undervalued.
But there are a few warning signals to watch out for.
Companies with low price to book value ratios may have increased risk, since these companies have historically gone out of business at a higher frequency than higher P/BV stocks. Also, companies that are expected to earn low returns on equity (ROE) are often traded at a low P/BV.
In fact, companies can trade below their book value, if you expect the ROE to be less than the cost of equity going forward.
To minimize the risk associated with low P/BV stocks, we’ve developed this screen to identify stocks with low P/BV ratios, and also remove companies that are more risky. We identify risk by using the Altman-Z Score, the Debt to Equity Ratio, Growth Rates, and the quality of growth.
Using the DiscoverCI Stock Screener we scan for stocks daily meeting the following criteria:
- TTM Revenue Growth Greater Than 5% (Remove Low Growth Companies),
- Price to Book Ratio Less Than 2,
- Altman Z Score Greater Than 2.75 (Lower Risk of Bankruptcy),
- Outstanding Debt Less Equity (Indicator of Safety), and
- Return on Invested Capital Greater Than 10% (Remove Companies With Low Quality Growth).
The list is sorted by price to book ratios from low to high. Below is our list of low Price to Book ratio stocks to add to your portfolio in 2020.
We update this list daily. Last updated: September 24th, 2020