Bill Nygren, whose Oakmark I fund is up more than 60% in the past year and in the top 1% of its class over the last decade, thinks stocks are still cheap even after the big rally.

“Although it feels like we are in a different world from a year ago, investor pessimism is as strong as it was then,” Nygren tells Barron’s. “Yet if you take away financials, the yields in the stock market are unusually high compared to the bond market.”

While the market is up more than 70% off its March 2009 lows, Nygren says valuations at that point were incredibly low. “Most of the time, we are buying stocks at 60% of what we think they are worth and selling them at 90%,” he said. “Last March we were selling at 60% of what they were worth and buying at 40%.”

Nygren also discusses some of his top picks right now, and the article also offers some interesting background on how Nygren became the top value investor he is today.