Value investors scour the market for stocks that they believe are trading below intrinsic value.
And straight from his latest Value Investing Congress, value investor Whitney Tilson tells us that AIG looks like a stock that’s significantly undervalued.
Tilson, who is the founder of T2 Partners and a CNBC Contributor, concedes the company has had its woes – but he thinks the company has turned a corner and the Street doesn’t know it yet.
“AIG has really transformed itself from one of the most complex businesses in the world to one that’s actually quite simple and easy to understand,” he says on CNBC's Fast Money.
And after sifting through the balance sheet and crunching the numbers, Tilson believes AIG is trading at a 41% discount to tangible book value today.”
That’s a metric that value investor Karen Finerman calls “intriguing.”
And although the government plans to sell out of its stake, Tilson doesn’t think the overhang will depress the stock signifcantly.