Five Cheap International Stocks, Starting with Volkswagen
Posted: September 29, 2026
September 28, 2026 (Maple Hill Syndicate) – Currently, nine of the 25 stocks I own for most of my clients are based outside the United States.
Is that un-American? Not in my view. I like a little international diversification at most times. Now, with U.S. stocks on the pricey side and the Federal Reserve raising interest rates, I think it makes more sense than usual.
Stocks in the U.S. market sell for about 23 times earnings (as measured by the Standard & Poor’s 500 Index). Here are five stocks based outside the United States that sell for less than 13 times earnings. Each has problems, but I believe the problems can be overcome.
Volkswagen
Five years ago, Germany’s Volkswagen AG (VWAGY) traded at more than $30 a share. Today it is barely above $8.
The company is cutting 100,000 jobs (about 15% of its total). To its east, China is making first-class electric cars at a very competitive price. To its west, the U.S. has erected stiff trade barriers.
As a result, Volkswagen shares sell for only 0.11 times the company’s per-share revenue. The ten-year average has been 0.29. The price/earnings ratio is a modest seven. Not many Wall Street analysts bother to cover VW anymore. But the three who do recommend it.
Chubb
From Switzerland comes Chubb Ltd. (CB), a large property & casualty insurance company that does business in more than 50 countries. Over the past decade, Chubb has increased its revenue more than 9% per year, and profits by more than 12% a year. About 60% of its revenue comes from North America.
According to government filings (which can sometimes be out of date), holders include several investors I respect, such as Scott Black, Jeremy Grantham and Joel Greenblatt. The stock sells for about 12 times earnings.
Novo Nordisk
Novo Nordisk AS of Denmark is the world leader in diabetes medications. In the past couple of years, it’s better known for its weight-loss drugs, Wegovy and Ozempic.
At present, Eli Lilly & Co. (LLY) is ahead of Novo Nordisk in the weight-loss market. That’s why Novo shares have dropped to about $39 from more than $140 two years ago.
Over the past ten years, Novo Nordisk shares have usually sold for about 23 times earnings. At the present valuation of 10 times earnings, I think it’s a bargain.
Gold Fields
Gold Fields Ltd. (GFI) is one of the ten largest gold mining companies in the world, and the largest in South Africa. Its stock has slipped about 7% this year, as gold has fallen following a big rise in 2025.
That leaves the shares at a multiple of eight times earnings – my kind of cheapskate territory.
I like gold-related investments now because gold usually keeps investors ahead of inflation. Gold also tends to hold up well when government deficits are big or international tensions are high. Both are true at the moment.
Central Japan Railway
In Japan, I like Central Japan Railway Co. (CJPRY), which operates the famed bullet trains that connect Tokyo, Kyoto and Osaka (plus a few other cities). The stock has fallen 13% in the past year as investors worry about heavy expenses for its “maglev” project.
Maglev stands for magnetic levitation. If successful, that project will make future trains rise about four inches above the tracks and travel at speeds exceeding 300 miles an hour.
All of this will take more than a decade to achieve, and cost many billions of dollars. But the stock is extremely cheap – less than seven times earnings.
Performance
The last time I wrote about international stocks was in March 2025. Those recommendations advanced 28.0% in a year, while in the U.S., the Standard & Poor’s 500 Total Return Index returned 15.1%.
The best gainer was Taiwan Semiconductor Manufacturing Co. (TSM), up about 89%. Also strong was Total Energies SE (TTE), which returned 50%.
Hikari Tsushin (KHTGF) chipped in 31% and Hannover Rueck SE 3%. A total dud was JD.com, which declined close to 34%.
Bear in mind that my column results are hypothetical and shouldn’t be confused with results I obtain for clients. Also, past performance doesn’t predict the future.
Last year’s was the 20th one I’ve written about international stocks, beginning in 1998. Of the 20 columns, 16 were profitable, and nine beat the S&P 500. My average return on this series has been 15.1%, versus 14.2% for the S&P 500.
Disclosure: I own Taiwan Semiconductor, Total Energies and Central Japan railway personally and for most of my clients. I own Novo Nordisk and Eli Lilly for one or more clients.
John Dorfman is chairman of Dorfman Value Investments LLC in Newton, Massachusetts, nd a syndicated columnist. His firm or clients may own or trade securities discussed in this column. He can be reached at jdorfman@dorfmanvalue.com.