One of GuruFocus’ most popular Premium features, Value Screeners, allow users to follow in the footsteps of several value legends, including Benjamn Graham, Peter Lynch, Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio).
Access
Users can access the popular value screeners by selecting the “Screeners” tab in the GuruFocus ribbon and clicking on the desired screener underneath the “Value Screens” section. Figure 1 illustrates the “Screeners” menu.
Figure 1
As Figure 1 illustrates, GuruFocus also developed several built-in templates for the All-in-One Screener. Users can also select one of the built-in GuruFocus Screeners or one of their own defined screeners under the “My Screeners” tab.
Buffett-Munger Screener Page Overview
Figure 2 illustrates a sample page for the Buffett-Munger Screener, a popular Screener that applies the Berkshire Hathaway Inc. (BRK.A)(BRK.B) co-managers' four-criteria investing approach.
Figure 2
The question mark button drops down a section in which the user can read how a value screener is defined. For example, the Buffett-Munger Screener considers four key criteria: high business predictability, expanding profit margins, low debt while growing business and low price-earnings-to-growth ratios.
Figure 3 zooms in on the Regions, Filters and Views section of the Buffett-Munger Screener page.
Figure 3
Users can subscribe to additional regions to view the Buffett-Munger stocks for each region.
Under the Filters tab, users can set the market cap range, predictability rank, industry and headquarter country region. Users can also add additional columns to the view by clicking the three vertical dots icon. Figure 4 illustrates the “Edit View” pop-up screen.
Figure 4
Brief discussion of the other value screeners
Ben Graham Net-net Screen
The Ben Graham Net-Net Screen applies the concept in which one should invest in stocks trading below 66% of net current asset value. Other key criteria include positive operating cash flow and no meaningful long-term debt compared to its cash position.
Undervalued-Predictable Screener
GuruFocus uses two methods – the Discounted Cash Flow method and Discounted Earnings method – to determine if a company is undervalued or overvalued.
The companies with a “Discounted Cash Flow Discount (%)” higher than 0 are considered undervalued companies based on the Discounted Cash Flow method. If the Discount (%) is lower than 0, then the companies are considered overvalued based on the Discounted Cash Flow method. Please click to see how GuruFocus calculates Intrinsic Value: DCF (FCF-based).
The companies with a “Discounted Earnings Discount (%)” higher than 0 are considered undervalued companies based on the Discounted Earnings method. If the Discount (%) is lower than 0, then the companies are considered overvalued based on the Discounted Earnings method. Please click to see how GuruFocus calculates Intrinsic Value: DCF (Earnings-based).
Greenblatt Magic Formula Screener
Gotham Capital manager Joel Greenblatt (Trades, Portfolio) defined a "magic formula" in his book, "The Little Book that Beats the Market." The magic formula hinges on two financial ratios: the earnings yield, which is defined as earnings before interest and taxes (EBIT) divided by enterprise value, and the return on capital, which is defined as Ebit divided by the sum of net fixed assets and net working capital. To select the top-ranked stocks, the magic formula ranks all stocks based on a combination of earnings yield and return on capital: Stocks with the highest earnings yield and return on capital receive a higher rank.
Historical Low Price-Sales Screener
The Historical Low Price-Sales Screener lists predictable companies that are sold at close to historical low price-sales ratios. Their sales and earnings have consistently grown for at least the past decade. However, the price-sales ratio of these companies are less than 50% above their historical lows. The low price-sales strategy has been used by Arnold Van Den Berg (Trades, Portfolio) and Ken Fisher (Trades, Portfolio).
Historical Low Price-Book Screener
The Historical Low Price-Book Screener lists stocks that not only have predictable revenue and earnings growth, but also have price-book ratios less than 50% above their historical lows.
Stocks at 52-Week Lows
Guru Robert Rodriguez has averaged more than 15% per year during the past 20 years. One of his winning strategies is to buy stocks "on or close to being on the new low list." The 52-Week Lows Screener helps users to find the stocks that are hitting new lows but are still loved by gurus and insiders.
High Dividend Yield Screener
The High Dividend Yield Screener allows users to view the stocks that have high guru ownership and a trailing dividend yield of at least 4%.
