Most Undervalued Stocks Right Now (March 2026)

Everyone wants to buy stocks on sale. But how do you actually know if a stock is cheap — or just cheap for a reason?

Benjamin Graham, the father of value investing, solved this problem decades ago with a deceptively simple formula: the Graham Number. It calculates the maximum price a conservative investor should pay for a stock based on its earnings per share and book value.

The formula: √(22.5 × EPS × Book Value Per Share)

Any stock trading below its Graham Number has a built-in margin of safety — the buffer between price and intrinsic value that Graham called the single most important concept in investing.

We ran our full pipeline of 115+ stocks through this screen this week. Here are the 7 most undervalued stocks right now by Graham margin of safety — with real numbers, real analysis, and real risks you need to know.

Disclaimer: This is not financial advice. All data is sourced from Yahoo Finance via our pipeline, updated March 20, 2026. Past undervaluation doesn't guarantee future returns. Do your own due diligence.

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The Graham Margin of Safety Screen — Quick Summary

| Ticker | Company | Price | Graham Number | Margin of Safety | P/E | Dividend Yield | |--------|---------|-------|--------------|-----------------|-----|---------------| | CMCSA | Comcast Corp. | $28.98 | $57.10 | 49.3% | 5.4x | 4.55% | | PRU | Prudential Financial | $92.51 | $144.76 | 36.1% | 9.3x | 5.89% | | ALL | Allstate Corp. | $204.07 | $306.97 | 33.5% | 5.4x | 2.12% | | TFC | Truist Financial | $43.88 | $64.06 | 31.5% | 11.5x | 4.74% | | HBAN | Huntington Bancshares | $15.17 | $20.76 | 26.9% | 10.9x | 4.09% | | AIG | American Int'l Group | $73.89 | $96.64 | 23.5% | 13.6x | 2.44% | | RF | Regions Financial | $25.21 | $32.48 | 22.4% | 11.0x | 4.15% |

Data: Yahoo Finance via valueofstock.com pipeline. Updated March 20, 2026.

Graham's own rule of thumb was to require a minimum 33% margin of safety before buying. By that standard, the top three on this list — CMCSA, PRU, and ALL — qualify as what he called "bargain issues."

Want to calculate the Graham Number for any stock yourself? Use our free Graham Number Calculator →

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#1 — Comcast Corporation (CMCSA)

Price: $28.98 | Graham Number: $57.10 | Margin of Safety: 49.3% | Market Cap: $105.6B

At nearly a 50% discount to its Graham Number, Comcast is the most statistically undervalued large-cap stock in our entire pipeline right now. That's not a typo.

Why It's Undervalued

The market is pricing Comcast like cable is already dead. Cord-cutting fears have hammered the stock to levels that imply near-zero growth — or worse, accelerating decline. But the numbers tell a different story.

Comcast's EPS sits at $5.39 and book value at $26.89 per share. The Graham Number formula spits out $57.10 — roughly twice the current stock price. Even with flat earnings for five years, the stock looks cheap by classical value standards.

Note: CMCSA's TTM EPS includes a Q2 2025 one-time gain. Using normalized EPS (~$3.40), the Graham Number falls to ~$45 — still above the current price of $28.98, representing meaningful upside.

The P/E ratio of 5.4x is among the lowest of any profitable S&P 500 company. The forward P/E of just 7.3x means the market expects earnings to stay low — but Comcast generated over $21 billion in free cash flow in FY2025. That's a massive cash engine trading at a deep discount.

Meanwhile, the dividend yield at 4.55% is well above the S&P 500 average, and the payout ratio is a modest 18.4% — meaning the dividend is extremely well-covered and has enormous room to grow.

The Investment Thesis

Comcast isn't just a cable company. It owns NBCUniversal, Peacock, Universal Theme Parks, and one of the nation's largest broadband infrastructure networks. Broadband is sticky — customers keep it even when they cut cable. The company's pivot toward its "connectivity-first" strategy is the kind of durable business model shift Graham would recognize as a margin of safety in itself.

At $28.98, you're essentially paying for the broadband and theme park businesses and getting NBC and Peacock for free.

Key Risks

• Cord-cutting acceleration — Linear TV revenue continues declining; if broadband growth slows, earnings estimates could come down
• High debt load — Comcast carries significant long-term debt from NBCUniversal and Sky acquisitions
• Streaming competition — Peacock is still unprofitable and faces fierce competition from Netflix, Disney+, and HBO Max
• Regulatory risk — Potential regulatory scrutiny of telecom and cable bundling

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#2 — Prudential Financial, Inc. (PRU)

Price: $92.51 | Graham Number: $144.76 | Margin of Safety: 36.1% | Market Cap: $32.2B

Prudential is an insurance and financial services giant trading at a compelling 36% discount to its Graham Number — with a fat 5.89% dividend yield on top.

Why It's Undervalued

PRU's fundamentals are solid. EPS of $9.99, book value of $93.23 per share (nearly equal to the current stock price), and a P/E of just 9.3x make this a classic value play. The price-to-book ratio is essentially 0.99x — you're paying less than the accounting value of the company's assets.

The forward P/E of 6.0x is even more striking. The market is pricing Prudential as if it will earn significantly less going forward — but Prudential has grown dividends consistently for over a decade and its insurance and retirement solutions business generates predictable, recurring cash flows.

The 5.89% dividend yield with a 54% payout ratio signals both a generous yield and sustainable dividend coverage. For income-oriented investors, this is the kind of setup that's hard to ignore.

The Investment Thesis

Prudential benefits from aging demographics. As the Baby Boomer generation enters retirement, demand for annuities, life insurance, and retirement income products grows structurally. PRU is positioned to capture this tailwind with its PGIM asset management arm (one of the world's top 15 investment managers) and its global insurance operations.

Trading below book value with a 36% Graham margin of safety is rare for a company of this quality.

Key Risks

• Interest rate sensitivity — Life insurers are exposed to interest rate movements that affect their investment portfolios
• Long-term care liabilities — Legacy long-term care insurance policies can generate unexpected claims
• International exposure — PRU has significant emerging market exposure (Japan, Brazil) which adds currency and political risk
• Competitive pressure — The annuity market is intensely competitive

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#3 — The Allstate Corporation (ALL)

Price: $204.07 | Graham Number: $306.97 | Margin of Safety: 33.5% | Market Cap: $53.0B

Allstate passes Graham's own minimum threshold of 33% — the only one outside of CMCSA and PRU that does. And it's doing it with some of the best fundamentals on this entire list.

Why It's Undervalued

The story here is a company that successfully executed a major turnaround. After years of catastrophic losses from hurricanes, wildfires, and inflation-driven claims costs, Allstate aggressively repriced its policies, exited unprofitable markets, and rebuilt its underwriting margins.

The results show up in the numbers: EPS of $38.06 — yes, thirty-eight dollars per share. That gives Allstate a P/E of just 5.4x. The book value is $110.03, and with EPS of $38.06, the Graham Number works out to $306.97, creating a 33.5% discount to the current stock price.

The forward P/E of 8.1x confirms the market still isn't fully crediting Allstate's restored profitability.

The Investment Thesis

Property and casualty insurance is a cyclical business — but it's also a necessary one. Cars, homes, and businesses must be insured. Allstate's brand recognition (it's been around since 1931), distribution network, and scale create significant competitive advantages.

After its repricing actions, Allstate's combined ratio (a key insurance profitability metric) has recovered substantially. This is a business that's earning much more than the market gives it credit for.

Key Risks

• Catastrophe exposure — A bad hurricane season or California wildfire year can wipe out multiple quarters of underwriting profit overnight
• Climate change — Long-term trend of more severe weather events increases claims risk structurally
• Regulatory pricing caps — State regulators can limit how quickly insurers raise premiums, trapping them in unprofitable markets

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#4 — Truist Financial Corporation (TFC)

Price: $43.88 | Graham Number: $64.06 | Margin of Safety: 31.5% | Market Cap: $54.8B

Truist is one of the country's largest regional banks — and it's trading at a 31.5% discount to its Graham Number with a 4.74% dividend yield.

Why It's Undervalued

TFC was created from the 2019 merger of BB&T and SunTrust, two of the Southeast's most established banks. The post-merger integration was rocky, and the stock has never fully recovered to pre-merger enthusiasm. That's created an opportunity.

EPS of $3.82, book value of $47.74, P/E of 11.5x, and a P/B ratio of just 0.92x (below book value) make Truist one of the better-valued large bank stocks in the market. The forward P/E of 8.6x suggests the market expects continued earnings pressure — but Truist's balance sheet is healthy and dividend is well-covered at a 54.4% payout ratio.

The 4.74% yield is well above what most bank stocks offer.

Key Risks

• Regional bank contagion — Following the 2023 regional bank stress events, the sector carries elevated investor skepticism
• Integration overhang — The BB&T/SunTrust merger synergies have taken longer than expected to materialize
• Credit quality — A recession could increase loan defaults and compress earnings
• Commercial real estate exposure — Many regional banks have elevated CRE loan exposure

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#5 — Huntington Bancshares (HBAN)

Price: $15.17 | Graham Number: $20.76 | Margin of Safety: 26.9% | Market Cap: $30.9B

Huntington is a Midwest-focused regional bank that doesn't get a lot of Wall Street attention — which is often exactly where value investors find opportunities.

EPS of $1.39, book value of $13.79, P/E of 10.9x, and a P/B of 1.1x keep HBAN in firmly reasonable value territory. The 4.09% dividend yield is well-covered, and the forward P/E of 7.94x implies continued undervaluation versus earnings power.

Huntington has a strong retail banking franchise across Ohio, Michigan, Indiana, and the broader Great Lakes region. It's not flashy, but it's profitable and consistent.

Key risks: Similar to TFC — credit quality in a downturn, CRE exposure, and the broader regional banking sentiment overhang.

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#6 — American International Group (AIG)

Price: $73.89 | Graham Number: $96.64 | Margin of Safety: 23.5% | Market Cap: $39.9B

AIG has undergone one of the most dramatic corporate restructurings in financial history. After nearly collapsing in 2008 (it required a $182 billion government bailout), the company spent over a decade selling off units, paying back taxpayers, and rebuilding its core property and casualty insurance business.

Today, AIG is a leaner, more focused insurer. EPS of $5.43, book value of $76.44, and a P/E of 13.6x make it a reasonably valued insurance play with a 23.5% Graham discount and 2.44% yield.

The key risk here is its history — and the reality that complex insurance businesses remain difficult to model. AIG's legacy liabilities and international exposure add layers of unpredictability.

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#7 — Regions Financial Corporation (RF)

Price: $25.21 | Graham Number: $32.48 | Margin of Safety: 22.4% | Market Cap: $22.1B

Regions rounds out our list — a Southeast and Midwest regional bank with EPS of $2.30, book value of $20.39, P/E of 11.0x, and a solid 4.15% dividend yield.

The 22.4% Graham discount is the lowest on this list, but still meaningful. Regions has a solid community banking franchise, strong deposit base, and historically conservative lending standards. The forward P/E of 8.83x keeps it in value territory.

Key risk: Regional bank sentiment, credit quality, and CRE loan exposure — same playbook as TFC and HBAN.

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What These 7 Stocks Have in Common

You'll notice something: six out of seven are in the Financial Services sector. That's not a coincidence.

The financial sector has been systematically undervalued since the 2023 regional banking scare. Investors are still pricing these stocks as if another banking crisis is imminent. The Graham Number doesn't care about sentiment — it cares about earnings and book value. And by those measures, banks are cheap.

Comcast is the outlier — a telecom/media company being priced for maximum pessimism around cord-cutting.

The pattern: market fear creating value opportunities.

That's exactly what Graham said creates buying opportunities. Not certainty — but a margin of safety that compensates you for taking the risk.

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How to Use This Information

A few things to keep in mind before acting on any of this:

1. Diversify — Don't put all your money into one sector (and definitely not six banks at once). These screens reveal pockets of value, not a guaranteed portfolio.

2. Check the trend — A stock can trade below its Graham Number for years. Make sure the underlying business isn't in permanent decline.

3. Use the calculator — Run your own numbers. Our Graham Number Calculator lets you plug in any stock's EPS and book value and see the margin of safety instantly.

4. Set a time horizon — Value investing works best over 3–5+ year horizons. Don't buy expecting a quick bounce.

5. Size positions appropriately — Higher margin of safety = justified larger position. Graham suggested no single stock exceed 10% of your portfolio.

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Find More Undervalued Stocks

This list is updated automatically from our live pipeline. To explore more:

• Graham Calculator → — Calculate the Graham Number for any stock
• Stock Screener → — Filter by P/E, P/B, dividend yield, and margin of safety
• Dividend Income Calculator → — See how much income these yields would generate in your portfolio

The best investors in history — Graham, Buffett, Munger — built their fortunes by buying quality businesses at a discount and waiting. The stocks above may or may not work out. But they offer what Graham always looked for first: a margin of safety.

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Data sourced from Yahoo Finance via the valueofstock.com pipeline. Updated March 20, 2026. Not financial advice. Always conduct your own due diligence before investing.