Ben Graham and Joel Greenblatt Stocks - High ROCE

Ben Graham And Joel Greenblatt Stocks In South Korea

This is from a recent report put out by Shawn Kim of Morgan Stanley South Korea. We took three segments which focus on undervalued stocks based on Ben Graham formula, Joel Greenblatt magic formula, and companies with a Piotroski score of 9. This first  screen is to identify high quality companies (high ROCE) that are also cheap (low EV/EBITDA). The table here shows the top 20 ranked companies sorted by most undervalued score.

Stocks covered by Morgan Stanley analysts with Overweight ratings are shaded grey.

Ben Graham and Joel Greenblatt Stocks - High ROCE

Guidelines Described For Value Investors In Benjamin Graham’s Book

Morgan Stanley applies to the Korean market the guidelines described for value investors in Benjamin Graham’s book, The Intelligent Investor (Chapter 14).

  • Universe: KOSPI 200 & MSCI Korea / Data: As of June 24, 2013
  • Strong earnings track record – EPS growth > 160% last five years
  • Inexpensive valuation: 1) P/ (three-year average EPS) is > 25% discount to market multiple. 2) P/E x P/BV is more than 40% discount to market multiple.
  • Stocks covered by Morgan Stanley analysts with Overweight ratings are shaded grey.

See European Joel Greenblatt and Ben Graham stocks

Ben Graham and Joel Greenblatt Stocks - Intelligent Investor

A total of 6 stocks with Piotroski score of 9 (excluding Financials).

Piotroski score rates stocks on financial strength and profitability. Each stock is given one point each time it passes one of the nine criteria:

1) Positive net income, 2) positive operating cash flow, 3) earnings quality – operating cash flow is greater than net income, 4) decreasing debt, 5) increasing working capital, 6) improving productivity, 7) growing profitability, 8) issuing stock, 9) competitive position.

Ben Graham and Joel Greenblatt Stocks High Piotroski Score

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Welcome in the new year by signing up up for ValueWalkPremium today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 1/31/2019 or after next 30 23 subscribers take advantage whichever comes first – please do not share this discount with others

 

0