Value Screeners Identify Opportunities Ahead of the 3rd Quarter

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="As investors continue monitoring Covid-19 trends, GuruFocus' value screeners continue identifying investment opportunities for its Premium members. The website also introduced a revamped version of the DCF Calculator, a customizable tool that helps to identify undervalued-predictable companies based on discounted cash flow models.” data-reactid=”12″>As investors continue monitoring Covid-19 trends, GuruFocus’ value screeners continue identifying investment opportunities for its Premium members. The website also introduced a revamped version of the DCF Calculator, a customizable tool that helps to identify undervalued-predictable companies based on discounted cash flow models.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="As discussed in a previous article, GuruFocus’ value screens include Ben Graham’s net-net screen, Peter Lynch’s price-earnings screen and Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)’s good companies at fair prices screen.” data-reactid=”19″>As discussed in a previous article, GuruFocus’ value screens include Ben Graham’s net-net screen, Peter Lynch’s price-earnings screen and Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)’s good companies at fair prices screen.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Apple hits new record high, yet Dow snaps three-day winning streak” data-reactid=”20″>Apple hits new record high, yet Dow snaps three-day winning streak

On Wednesday, the Dow Jones Industrial Average closed at 26,119.61, down 170.35 points from Tuesday’s close of 26,289.98. Despite this, Apple Inc. (NASDAQ:AAPL), the top holding of Berkshire’s equity portfolio as of the March filing, reached a new intraday high of $355.40.

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The Dow and Standard & Poor’s 500 Index snapped a three-day winning streak as investors continued monitoring the spread of the coronavirus outbreak, with global cases eclipsing 8.15 million according to Johns Hopkins University statistics. Further, U.S. cases topped 2.13 million on the heels of new cases and hospitalizations spiking in several states.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="GuruFocus launches revamped DCF Calculator” data-reactid=”34″>GuruFocus launches revamped DCF Calculator

We are pleased to announce that GuruFocus launched a revamped version of our DCF Calculator. Figure 1 illustrates a sample DCF Calculator page for Apple.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Figure 1” data-reactid=”43″>Figure 1

The User Defined DCF section allows you to edit the values for each parameter of the DCF model:

• Based On: Click on EPS to use earnings per share as the base value or Free Cash Flow to use free cash flow per share as the base value. You can also edit the value by clicking the blue pencil icon: For example, you might want to use the last fiscal year earnings per share instead of trailing 12-month earnings per share.
• Discount rate: Change the discount rate used in the model; for example, you might want to use the company’s weighted-average cost of capital instead of the default value of 12%.
• Tangible book value: Edit the tangible book value if necessary; you can also add the tangible book value to the DCF fair value if you wish.
• Growth Stage and Terminal Stage: Change the growth stage years and growth rate either using the sliders or the pencil icon. Do the same for the terminal stage years and growth rate.

The following video illustrates each of the DCF Calculator parameters using Apple and Netflix Inc. (NASDAQ:NFLX).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Value screeners list opportunities ahead of second half of year” data-reactid=”53″>Value screeners list opportunities ahead of second half of year

Table 1 lists the number of stocks making our value screens as of Wednesday across each of our subscription regions.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Table 1” data-reactid=”58″>Table 1

Disclosure: The author is long Apple.

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article first appeared on GuruFocus.
” data-reactid=”66″>This article first appeared on GuruFocus.

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