3 Prominent Stocks Estimated To Be Trading At Up To 38.4% Below Intrinsic Value

As U.S. investors keenly await the Federal Reserve's decision on interest rates, major indices like the S&P 500 have recently pulled back after nearing record highs, reflecting a cautious market sentiment. In such an environment, identifying stocks trading below their intrinsic value can present opportunities for those looking to capitalize on potential undervaluation amidst broader economic uncertainties.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Click here to see the full list of 205 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Chewy (CHWY)

Overview: Chewy, Inc., along with its subsidiaries, operates as an e-commerce company in the United States and has a market cap of approximately $14.36 billion.

Operations: The company's revenue is primarily generated from the sale of pet products and services, totaling $12.35 billion.

Estimated Discount To Fair Value: 38.4%

Chewy is trading at US$34.84, significantly below its estimated fair value of US$56.53, suggesting undervaluation based on cash flows. Despite a slower revenue growth forecast of 7.3% annually, earnings are expected to grow significantly at 29% per year, outpacing the broader U.S. market's growth rate. Recent initiatives like the Get RealTM fresh dog food line and strategic partnerships enhance product offerings but profit margins have declined from last year’s figures.

• According our earnings growth report, there's an indication that Chewy might be ready to expand.
• Navigate through the intricacies of Chewy with our comprehensive financial health report here.

NIO (NIO)

Overview: NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China, Europe, and internationally with a market cap of approximately $12.44 billion.

Operations: The company's revenue is primarily derived from its smart electric vehicles related business, amounting to CN¥72.54 billion.

Estimated Discount To Fair Value: 27.3%

NIO, trading at US$5.03, is priced below its estimated fair value of US$6.92, indicating undervaluation based on cash flows. Despite past shareholder dilution and current unprofitability, NIO's revenue is expected to grow at 22.3% annually—faster than the broader U.S. market rate of 10.7%. November deliveries surged by 76.3% year-over-year to 36,275 vehicles, reflecting robust demand across its vehicle brands and supporting future growth prospects in profitability and cash flow generation.

• Our comprehensive growth report raises the possibility that NIO is poised for substantial financial growth.
• Take a closer look at NIO's balance sheet health here in our report.

XPeng (XPEV)

Overview: XPeng Inc. is a company that designs, develops, manufactures, and markets smart electric vehicles in China with a market cap of approximately $18.89 billion.

Operations: XPeng generates revenue primarily from its Auto Manufacturers segment, amounting to CN¥70.57 billion.

Estimated Discount To Fair Value: 18%

XPeng, trading at US$19.81, is undervalued relative to its fair value estimate of US$24.15, driven by strong cash flow potential and rapid revenue growth forecasted at 22.6% annually—outpacing the U.S. market average of 10.7%. Recent delivery figures show a significant increase with 36,728 Smart EVs delivered in November 2025, up 19% year-over-year, underscoring robust demand and supporting profitability prospects over the next three years despite current low return on equity forecasts.

• The analysis detailed in our XPeng growth report hints at robust future financial performance.
• Get an in-depth perspective on XPeng's balance sheet by reading our health report here.

Key Takeaways

• Discover the full array of 205 Undervalued US Stocks Based On Cash Flows right here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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