Stocks recently deemed undervalued include Grand Peak Capital and NamSys, as they trade at a market price below their true valuations. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.
Grand Peak Capital Corp. (CNSX:GPK)
Grand Peak Capital Corp. is a private equity and venture capital firm specializing in growth capital, management or leveraged buyouts, turnaround situations, and reviewing investment opportunities in undervalued companies. The company was established in 1952 and has a market cap of CAD CA$9.00M, putting it in the small-cap group.
GPK’s stock is now hovering at around -62% under its true level of $0.95, at a price tag of CA$0.36, according to my discounted cash flow model. The mismatch signals a potential chance to invest in GPK at a discounted price. Furthermore, GPK’s PE ratio stands at around 7.55x relative to its Capital Markets peer level of, 12.99x indicating that relative to its comparable set of companies, you can buy GPK for a cheaper price. GPK is also robust in terms of financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. GPK also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Continue research on Grand Peak Capital here.
NamSys Inc. (TSXV:CTZ)
NamSys Inc. provides software solutions for currency management and processing for the banking and merchant industries principally in North America. The company was established in 1997 and with the stock’s market cap sitting at CAD CA$13.92M, it comes under the small-cap stocks category.
CTZ’s shares are currently trading at -43% lower than its true value of $0.89, at a price of CA$0.51, according to my discounted cash flow model. The divergence signals an opportunity to buy CTZ shares at a low price. In addition to this, CTZ’s PE ratio is currently around 15.06x while its Software peer level trades at, 36.75x indicating that relative to its comparable set of companies, we can buy CTZ’s stock at a cheaper price today. CTZ is also in good financial health, as current assets can cover liabilities in the near term and over the long run. CTZ has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Interested in NamSys? Find out more here.
Torrent Capital Ltd. (TSXV:TORR)
Torrent Capital Ltd., an investment company, focuses on investments in private and public company securities. Torrent Capital is run by CEO Wade Dawe. It currently has a market cap of CAD CA$5.68M placing it in the small-cap category
TORR’s stock is now floating at around -61% below its actual worth of $0.61, at a price of CA$0.24, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Moreover, TORR’s PE ratio stands at around 5.71x compared to its Capital Markets peer level of, 12.99x implying that relative to its competitors, we can buy TORR’s stock at a cheaper price today. TORR is also in great financial shape, as current assets can cover liabilities in the near term and over the long run. TORR has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Continue research on Torrent Capital here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.