– By James LiAccording to the All-in-one Screener, a serious Premium characteristic of GuruFocus, three stocks that Warren Buffett (Trades, Portfolio) and Invoice Nygren (Trades, Portfolio) agree on and commerce at cheap ranges primarily based on their GF Worth Line are Bank of America Corp. (NYSE:BAC), American Specific Co. (NYSE:AXP) and Normal Motors Co. (NYSE:GM).BackgroundBerkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) CEO Warren Buffett (Trades, Portfolio) mentioned that he seems to be for 4 key standards: an comprehensible enterprise with favorable long-term prospects that’s operated by trustworthy and competent individuals and accessible at a sexy price.Three Moderately Valued Stocks Warren Buffett and Invoice Nygren Agree OnMoreLikewise, Nygren and his companions at Oakmark Funds imagine that over time, the stock will attain the value of the underlying firm. Oakmark emphasizes a number of different key traits, together with clever use of free cash flows and supervisor possession. The managers of the Chicago-based fund view every buy as shopping for a bit of the enterprise and never only a stock certificates.Three Moderately Valued Stocks Warren Buffett and Invoice Nygren Agree OnMoreAs such, the 2 value traders have a number of holdings in widespread: The Screener listed 9 widespread holdings as of the June-quarter submitting. Determine 1 provides a display shot illustrating the Screener inputs.Three Moderately Valued Stocks Warren Buffett and Invoice Nygren Agree OnMoreFigure 1GF Worth Line measures diploma of undervaluation or overvaluationAccording to the brand new characteristic announcement, the GF Worth Line measures the diploma of undervaluation or overvaluation primarily based on the web site’s distinctive methodology, which considers an organization’s historic valuations, an inner adjustment issue primarily based on an organization’s previous returns and progress and future estimates of enterprise efficiency. Determine 2 illustrates a pattern GF Worth Chart for Apple Inc. (NASDAQ:AAPL), an organization that Nygren’s agency offered out of in the course of the second quarter however represents over 44% of Berkshire’s fairness portfolio as of June.Three Moderately Valued Stocks Warren Buffett and Invoice Nygren Agree OnMoreFigure 2As Determine 2 illustrates, Apple’s share price is off the charts, i.e., considerably above the darkish crimson part. The Cupertino, California-based tech large has a price-to-GF-Worth ratio of 1.87 as of Wednesday, suggesting important overvaluation.Alternatively, firms with a price-to-GF-Worth ratio lower than 0.9 are undervalued, whereas firms with a price-to-GF-Worth ratio between 0.9 and 1.1 are pretty valued. Nonetheless, if the price-to-GF-Worth ratio is just too low, for instance, lower than 0.7, traders may want to observe an organization’s monetary energy and profitability measures to keep away from potential value traps.Based on the Screener, three of Buffett and Nygren’s widespread holdings have a price-to-GF-Worth ratio between 0.7 and 1.1, suggesting cheap valuation.Bank of AmericaAccording to Aggregated Portfolio statistics, one other Premium characteristic of GuruFocus, Berkshire and Oakmark have a mixed weight of roughly 18% in Bank of America. The Charlotte-based bank is Oakmark’s fourth-largest holding regardless of occupying simply 3.35% of the fairness portfolio. Alternatively, Berkshire has expanded its holding in Bank of America to 14.57% as of Aug. four in line with GuruFocus Actual-Time Picks, one other Premium characteristic of the web site.Story continues3 Moderately Valued Stocks Warren Buffett and Invoice Nygren Agree OnMoreGuruFocus ranks Bank of America’s valuation 5 out of 10: price-to-free-cash-flow and price-to-operating-cash-flow ratios are outperforming over 62% of worldwide opponents regardless of price-book and price-sales ratios underperforming over 66% of worldwide banks.Three Moderately Valued Stocks Warren Buffett and Invoice Nygren Agree OnMoreBank of America is modestly undervalued primarily based on a price-to-GF-Worth ratio of 0.78.Three Moderately Valued Stocks Warren Buffett and Invoice Nygren Agree OnMoreAmerican ExpressBerkshire and Oakmark have a mixed weight of 8.87% in American Specific.Three Moderately Valued Stocks Warren Buffett and Invoice Nygren Agree OnMoreGuruFocus ranks the New York-based bank card firm’s valuation Three out of 10 on the again of price valuations underperforming over 70% of worldwide opponents, with price-book ratios underperforming over 91% of worldwide credit score service firms. Regardless of this, American Specific remains to be deemed pretty valued in line with the web site’s personal valuation methodology, with a price-to-GF-value ratio of 0.91.Three Moderately Valued Stocks Warren Buffett and Invoice Nygren Agree OnMoreGeneral MotorsBerkshire and Oakmark have a mixed weight of two.88% in Normal Motors.Three Moderately Valued Stocks Warren Buffett and Invoice Nygren Agree OnMoreGuruFocus ranks the Detroit-based automaker’s valuation Three out of 10 on the again of price-earnings ratios underperforming over 62% of worldwide opponents. With a price-to-GF-Worth ratio of 1.07, GM is taken into account pretty valued but barely overvalued.Three Moderately Valued Stocks Warren Buffett and Invoice Nygren Agree OnMoreDisclosure: The writer is lengthy Apple. Apart from Berkshire’s holding in Bank of America, the point out of holdings on this article replicate data as of the June-quarter submitting and don’t embrace any trades Buffett and Nygren made in the course of the third quarter.Per Securities and Alternate Fee rules, quarterly trades are due 45 days after the quarter ends, besides when the trades are made in firms the place the guru has over 5% of shares excellent. Actual-time trades are due after 10 days after the transaction is made.Learn extra right here:Buffett’s Kraft Heinz Declares $2 Billion Value Restructuring PlanNew Characteristic: GuruFocus Worth LineWarren Buffett’s Berkshire Dials Again Liberty International StakeNot a Premium Member of GuruFocus? Join a free 7-day trial right here.This text first appeared on GuruFocus.