All intelligent investing is value investing -- acquiring more than you are paying for.
-- credited to Warren Buffett's business partner Charlie Munger  

There are many ways to go about investing in the stock market. You might, for example, chase high-flying stocks or be a "technical analysis" devotee, studying charts of stock-price movements in order to guess where a stock is headed next. Another approach is "value investing," practiced by Warren Buffett, Charlie Munger, and many other great investors.

As Munger quipped, value investors aim to buy stocks when they're undervalued, thereby securing a "margin of safety." Here's a quick look at three impressive businesses with stocks that appear to be undervalued.

1. PayPal

PayPal (PYPL -3.27%) is a major player in the financial technology -- or "fintech" -- arena. It recently sported more than 325 million accounts worldwide and has a market value topping $70 billion. You're probably familiar with PayPal but may not realize that it's also home to other operations, such as Venmo, Braintree, Honey, Hyperwallet, Paidy, and Xoom.

In PayPal's first quarter of 2023, revenue grew 9% year over year (on a GAAP basis), while earnings per share (EPS) popped 61% (33% on a non-GAAP basis). Total payment volume jumped 10%, and free cash flow came in at $1 billion.

One of the biggest payment processors around, PayPal recently had market share of 42% in online payment processing software. The company has been working on reducing costs and now has diversified revenue streams and more cash than debt. Its future isn't guaranteed to be golden, but it has a lot of promise.

How much of a bargain are PayPal shares right now? Well, consider that the stock's price-to-sales ratio was recently 2.8, well below its five-year average of 8.2, while its forward-looking price-to-earnings (P/E) ratio of 12.8 was well below the five-year average of 34.9.

2. CVS Health

CVS Health (CVS 1.33%) is another big business with an attractively priced stock. With a recent market value topping $90 billion, it bills itself as America's "leading health solutions company."

In the company's review of its 2022 year, it boasted a No. 4 ranking in the Fortune 500 list and 105 consecutive quarters of dividend payments (that's more than 26 years). In addition, 85% of the U.S. population lives within 10 miles of a CVS pharmacy.

On top of that, its employees numbered around 300,000, serving more than 110 million pharmacy benefit manager (PBM) members, 6.5 million CarePass members, and 24.3 million medical benefit members. CVS Health acquired Aetna back in 2018, and in 2022, it paid off more than $25 billion in long-term debt since the acquisition.

CVS Health's first-quarter revenue grew 11% year over year, with cash flow from operations topping $7 billion. It has been growing, in part, via acquisition, and recently added Signify Health and Oak Street Health. These add capabilities for at-home care and value-based care.

With its shares recently down 33% from their 52-week high and its price-to-sales and P/E ratios below their five-year averages, CVS Health's stock looks attractively valued -- and, to some, a "screaming buy." It pays a dividend, too, that recently yielded 3.4%. 

3. Comcast

With a recent market value near $170 billion, Comcast (CMCSA -0.72%) is another huge business with more operations than you might realize, boasting 57 million customer relationships globally. Check out its own description from a recent SEC filing:

We deliver broadband, wireless, and video through our Xfinity, Comcast Business, and Sky brands; create, distribute, and stream leading entertainment, sports, and news through Universal Filmed Entertainment Group, Universal Studio Group, Sky Studios, the NBC and Telemundo broadcast networks, multiple cable networks, Peacock, NBCUniversal News Group, NBC Sports, Sky News, and Sky Sports; and provide memorable experiences at Universal Parks and Resorts in the United States and Asia.

Comcast's price-to-sales and P/E ratios were recently below their five-year averages, and its stock is down about 33% from its five-year high, suggesting a bargain. The shares do appear solidly undervalued, but that's partly because the company is facing challenges from wireless carriers and consumers switching from cable to streaming entertainment. In the company's first quarter, revenue contracted by 4% year over year, while adjusted EPS jumped 7%.

CEO Brian Roberts noted that

[W]e had solid revenue growth in our high-margin connectivity businesses while increasing our Peacock subscribers more than 60% year over year. Our theme parks set a new record of Adjusted EBITDA for a first quarter. In addition, we returned a healthy amount of capital to our shareholders and maintained an enviable balance sheet.

Comcast's growth rate may shrink in the years ahead, but between theme parks, movies, the Peacock streaming service, and other businesses, it's likely to keep growing -- and it may be a great choice for income-seeking investors. Its dividend recently yielded 2.9%, and that payout has been rising by an annual average rate of 9% over the past five years.

These are just three of the many companies out there with compelling valuations. If any of these interest you, dig into them a little deeper.