Top 10 Undervalued Stocks Under $20 (March 2026)
Looking for stocks that are actually worth more than what Wall Street is charging? You're in the right place.
We used Benjamin Graham's famous formula — the same math Warren Buffett learned from his mentor — to find stocks trading under $20 that the market is sleeping on. These aren't penny stocks or junk. These are real companies with real earnings, real book value, and a price tag that doesn't match what they're actually worth.
Let's dig in.
What Is the Graham Number? (Quick Version)
The Graham Number is dead simple. It tells you the maximum price you should pay for a stock based on two things:
- Earnings per share (EPS) — how much money the company makes per share
- Book value per share (BVPS) — what the company's assets are worth on paper
The formula:
Graham Number = √(22.5 × EPS × Book Value Per Share)
If the stock price is below the Graham Number, you might be looking at a bargain. The bigger the gap, the bigger the potential upside.
That's it. No fancy algorithms. No AI hype. Just old-school math that's been working since the 1940s.
👉 Calculate the Graham Number for any stock →
How We Built This List
We screened for U.S.-listed stocks with:
- Share price under $20
- Positive EPS (actually making money)
- Price-to-book ratio under 1.0 (trading below asset value)
- P/E ratio under 15 (not overpriced)
- Market cap over $300 million (not micro-cap junk)
Then we ran the Graham Number on each one and ranked them by upside potential.
Data sourced from Finviz and SEC filings as of March 4, 2026.
👉 Use our free stock screener to run your own filters →
The Top 10
1. Korea Electric Power (KEP) — Utilities
| Metric | Value |
|---|---|
| Price | $17.21 |
| EPS (TTM) | $4.55 |
| Book Value/Share | $57.20 |
| Graham Number | $76.50 |
| Upside Potential | 344% |
| Market Cap | $22.1B |
| P/E Ratio | 3.78 |
Why it's cheap: Korea's largest electric utility just swung back to massive profitability after years of losses from government price caps. The market hasn't fully priced in the earnings turnaround. At a P/E of 3.78, this is absurdly cheap for a utility company. The Graham Number says it's worth over $76 — that's more than 4x the current price.
The catch: It's a South Korean government-controlled company. Politics can move the stock. But the raw numbers scream value.
2. Valley National Bancorp (VLY) — Regional Banking
| Metric | Value |
|---|---|
| Price | $12.58 |
| EPS (TTM) | $1.01 |
| Book Value/Share | $13.85 |
| Graham Number | $17.74 |
| Upside Potential | 41% |
| Market Cap | $7.0B |
| P/E Ratio | 12.44 |
Why it's cheap: This New Jersey-based regional bank serves the NYC metro area — one of the wealthiest banking markets in the country. After some commercial real estate headwinds in 2024, earnings are stabilizing. Trading at 91% of book value, you're getting the bank's assets at a discount.
The catch: Regional banks are always one bad loan portfolio away from trouble. But VLY has been around since 1927. They've survived worse.
3. F.N.B. Corp (FNB) — Regional Banking
| Metric | Value |
|---|---|
| Price | $17.06 |
| EPS (TTM) | $1.56 |
| Book Value/Share | $18.72 |
| Graham Number | $25.62 |
| Upside Potential | 50% |
| Market Cap | $6.1B |
| P/E Ratio | 10.91 |
Why it's cheap: Pittsburgh-based bank with operations across the mid-Atlantic. Solid community bank with a 3.4% dividend yield to pay you while you wait. Book value is higher than the stock price — that's like buying a house for less than what the land alone is worth.
The catch: Interest rate sensitivity. If rates drop too fast, net interest margins get squeezed. But so far, FNB is managing the transition well.
4. Rithm Capital (RITM) — Mortgage REIT
| Metric | Value |
|---|---|
| Price | $9.76 |
| EPS (TTM) | $1.04 |
| Book Value/Share | $12.48 |
| Graham Number | $17.09 |
| Upside Potential | 75% |
| Market Cap | $5.4B |
| P/E Ratio | 9.36 |
Why it's cheap: Formerly New Residential Investment, Rithm is one of the largest mortgage servicers in the U.S. They service over $600 billion in mortgages. Trading at 78% of book value with an ~10% dividend yield. The market is pricing in mortgage risk that may never materialize.
The catch: Mortgage REITs are volatile. Interest rate moves hit them hard. But at this discount to book, a lot of bad news is already baked in.
👉 Check the P/E ratio for any stock →
5. Graphic Packaging (GPK) — Packaging & Containers
| Metric | Value |
|---|---|
| Price | $11.19 |
| EPS (TTM) | $1.48 |
| Book Value/Share | $12.25 |
| Graham Number | $20.20 |
| Upside Potential | 81% |
| Market Cap | $3.3B |
| P/E Ratio | 7.55 |
Why it's cheap: They make paperboard packaging — cereal boxes, beverage carriers, food containers. Boring? Yes. Essential? Absolutely. People don't stop buying cereal during recessions. At a P/E of 7.55 with strong free cash flow, this is a classic value play hiding in plain sight.
The catch: They carry some debt from acquisitions. But the business generates consistent cash flow to service it.
6. Harley-Davidson (HOG) — Consumer Cyclical
| Metric | Value |
|---|---|
| Price | $19.46 |
| EPS (TTM) | $2.60 |
| Book Value/Share | $22.15 |
| Graham Number | $36.01 |
| Upside Potential | 85% |
| Market Cap | $2.2B |
| P/E Ratio | 7.47 |
Why it's cheap: Yes, that Harley-Davidson. The iconic motorcycle maker has been beaten down by fears about aging customers and tariff risks. But they're still profitable with strong brand loyalty. At 7.5x earnings and under book value, Mr. Market is basically saying Harley is worth more dead than alive. History suggests that's usually wrong.
The catch: The LiveWire electric motorcycle bet hasn't paid off yet. Tariffs on imports could hurt margins. But the brand isn't going anywhere.
7. Nomad Foods (NOMD) — Packaged Foods
| Metric | Value |
|---|---|
| Price | $10.38 |
| EPS (TTM) | $1.02 |
| Book Value/Share | $12.94 |
| Graham Number | $17.22 |
| Upside Potential | 66% |
| Market Cap | $1.5B |
| P/E Ratio | 10.22 |
Why it's cheap: Europe's largest frozen food company. They own Birds Eye, Findus, and Iglo — brands that have been in freezers for decades. Frozen food is recession-proof. At 10x earnings and 80% of book value, this is a solid consumer staple trading like a distressed company.
The catch: European currency risk (they report in euros). But the business fundamentals are rock solid.
8. Kohl's Corp (KSS) — Department Stores
| Metric | Value |
|---|---|
| Price | $15.29 |
| EPS (TTM) | $1.70 |
| Book Value/Share | $21.35 |
| Graham Number | $28.58 |
| Upside Potential | 87% |
| Market Cap | $1.7B |
| P/E Ratio | 8.97 |
Why it's cheap: Retail is "dead," right? Not exactly. Kohl's still has over 1,100 stores, a partnership with Sephora driving foot traffic, and Amazon return counters in every location. Trading at 72% of book value with a nice dividend. The real estate alone is worth paying attention to.
The catch: Department store retail is tough. Online competition is real. But at this price, you're mostly buying the real estate with the retail thrown in for free.
9. Fidelis Insurance Holdings (FIHL) — Insurance
| Metric | Value |
|---|---|
| Price | $19.50 |
| EPS (TTM) | $2.21 |
| Book Value/Share | $22.88 |
| Graham Number | $33.71 |
| Upside Potential | 73% |
| Market Cap | $2.0B |
| P/E Ratio | 8.83 |
Why it's cheap: Bermuda-based specialty insurer that went public in 2023. They write property, marine, and specialty lines — the types of insurance where premiums have been rising fast. Trading at 85% of book value with strong underwriting results. The market hasn't fully discovered this one yet.
The catch: Newer public company with limited track record. Catastrophe events (hurricanes, earthquakes) can hit results hard in any given quarter.
10. DXC Technology (DXC) — IT Services
| Metric | Value |
|---|---|
| Price | $12.48 |
| EPS (TTM) | $2.32 |
| Book Value/Share | $16.75 |
| Graham Number | $29.55 |
| Upside Potential | 137% |
| Market Cap | $2.1B |
| P/E Ratio | 5.37 |
Why it's cheap: DXC provides IT services to major corporations and governments worldwide. They were formed from the merger of HP Enterprise Services and CSC. At a P/E of 5.37, the market is practically giving this away. The Graham Number says it should be worth nearly $30 — more than double the current price.
The catch: Revenue has been declining as they restructure. Management turnover has been a concern. But at 5x earnings, the bar for a positive surprise is very low.
The Big Picture
Here's every stock at a glance:
| # | Ticker | Price | EPS | Book Value | Graham # | Upside % |
|---|---|---|---|---|---|---|
| 1 | KEP | $17.21 | $4.55 | $57.20 | $76.50 | 344% |
| 2 | VLY | $12.58 | $1.01 | $13.85 | $17.74 | 41% |
| 3 | FNB | $17.06 | $1.56 | $18.72 | $25.62 | 50% |
| 4 | RITM | $9.76 | $1.04 | $12.48 | $17.09 | 75% |
| 5 | GPK | $11.19 | $1.48 | $12.25 | $20.20 | 81% |
| 6 | HOG | $19.46 | $2.60 | $22.15 | $36.01 | 85% |
| 7 | NOMD | $10.38 | $1.02 | $12.94 | $17.22 | 66% |
| 8 | KSS | $15.29 | $1.70 | $21.35 | $28.58 | 87% |
| 9 | FIHL | $19.50 | $2.21 | $22.88 | $33.71 | 73% |
| 10 | DXC | $12.48 | $2.32 | $16.75 | $29.55 | 137% |
How to Start Investing in These Stocks
You don't need a lot of money. Most brokerages now let you buy fractional shares — meaning you can own a piece of any stock for as little as $1.
Ready to start?
👉 Open a Moomoo account and get up to 15 free stocks — no minimums, commission-free trading.
👉 Try Webull and get free fractional shares — great charts and tools for value investors.
These are affiliate links. We may earn a commission at no cost to you — it helps keep this site running.
Related Tools
- Graham Number Calculator — Run the Graham Number on any stock yourself
- P/E Ratio Calculator — Check if a stock is overpriced or a bargain
- Dividend Calculator — See how much dividend income a stock could generate
- Free Stock Screener — Filter the entire market by your own criteria
Important Disclaimers
This is not financial advice. We're sharing publicly available data and running math on it. The Graham Number is a screening tool, not a crystal ball. Stocks can stay "undervalued" for years or drop further.
Always do your own research. Consider your risk tolerance. Don't invest money you can't afford to lose.
Data sources: Finviz stock screener, SEC filings, company financial reports. Prices and financial data as of March 4, 2026. Numbers can change daily.
Found this useful? Share it with a friend who's looking for bargains in the stock market. And bookmark valueofstock.com for more no-BS stock analysis.
Get Picks Like This Every Tuesday
Join 10,000+ value investors getting our best undervalued stock picks, Graham Number breakdowns, and dividend analysis — free.
Get Our Best Stock Picks — Free
Join 10,000+ value investors. Get our top undervalued stock picks, Graham-style analysis, and dividend recommendations delivered to your inbox every week.
No spam, ever. Unsubscribe anytime.