11 Large cap stocks selling below book value

Buying stocks below book value is a very old strategy. Benjamin Graham used it extensively during various market panics to get hold of cheap stocks. You may find a lot of bargains in this area, but beware, because some of them have real reason for selling so low.

11. Mitsubishi UFJ (MTU)

Mitsubishi UFJ Financial Group, Inc., through its subsidiaries, provides financial services in Japan and internationally. The company also engages in the wholesale and retail securities businesses.

Market cap: $85 billion
Price to book: 0.74
Dividend yield: 1.9%
Forward P/E ratio: 16

10. Vodafone (VOD)

Vodafone Group Plc provides mobile communications services in Europe, the Middle East, Africa, the Asia Pacific, and the United States.

Market cap: $86 billion
Price to book: 0.73
Dividend yield: 7.6%
Forward P/E ratio: 23

9. Citigroup (C)

Citigroup is one of the largest banks in United States. They were hit hard by the financial crisis, and have been struggling ever since.

Market cap: $143 billion
Price to book: 0.71
Dividend yield: 0.08%
Forward P/E ratio: 8.7

8. Petroleo Brasileiro

Petroleo Brasileiro S.A., known as Petrobras engages in the exploration, exploitation, and production of oil and gas, and energy in Brazil and internationally.

Market cap: $106.3 billion
Price to book: 0.66
Dividend: 4.7%
Forward P/E ratio: 7.4

7. Royal Bank of Scotland Group

The Company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. Just like Citigroup, RBS suffered heavy losses during the meltdown in 2008

Market cap: $65 billion
Price to book: 0.64
Dividend yield: 0%
Forward P/E ratio: 0

6. Arcelor Mittal

ArcelorMittal, Socit Anonyme, together with its subsidiaries, operates as an integrated steel and mining company worldwide. The company operates in six segments: Flat Carbon Americas; Flat Carbon Europe; Long Carbon Americas and Europe; AACIS; Distribution Solutions; and Mining.

Market cap: $25 billion
Price to book: 0.55
Dividend yield: 1.13%
Forward P/E ratio: 11

5. Aegon

The Company's businesses focus on life insurance, pensions, savings and investment products. 

Market cap: $19 billion
Price to book: 0.55
Dividend yield: 3.34%
Forward P/E ratio: 11

4. Posco (PKX)

Posco manufactures and sells steel rolled products and plates. It operates through four segments: Steel, Trading, Construction, and Others.
 
Market cap: $24.5 billion
Price to book: 0.54
Dividend yield: 1.1%
Forward P/E ratio: 12

3. Deutsche Bank (DB)

Deutsche Bank Aktiengesellschaft provides investment, financial, and related products and services worldwide. Its Corporate Banking & Securities division is engaged in selling, trading, and structuring a range of fixed income, equity, equity-linked, foreign exchange, and commodities products.

Market cap: $51 billion
Price to book: 0.52
Dividend yield: 2%
Forward P/E ratio: 7

2. KB Financial Group (KB)

KB Financial Group Inc., a financial holding company, provides various banking and related financial services to individuals and corporations in Korea and internationally.

Market cap: $13 billion
Price to book: 0.51
Dividend yield: 0%
Forward P/E ratio: -

1. Korea Electric Power Corp (KEP)

Korea Electric Power Corporation, an integrated electric utility company, generates, transmits, and distributes electricity in Korea.

Market cap: $24.5 billion
Price to book: 0.48
Dividend yield: 0.2%
Forward P/E ratio: 6.6

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