Stocks recently deemed undervalued include Ambition Group and Globe International, as they trade at a market price below their true valuations. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Ambition Group Limited (ASX:AMB)
Ambition Group Limited provides permanent and contracting recruitment services in Australia, Asia, and the United Kingdom. Started in 1999, and now run by Nicholas Waterworth, the company employs 275 people and has a market cap of AUD A$10.17M, putting it in the small-cap stocks category.
AMB’s stock is now floating at around -74% under its true level of $0.63, at a price of $0.16, based on its expected future cash flows. The discrepancy signals an opportunity to buy low. In terms of relative valuation, AMB’s PE ratio is currently around 8.2x compared to its professional services peer level of 21.2x, implying that relative to its peers, we can purchase AMB’s shares for cheaper. AMB is also robust in terms of financial health, as current assets can cover liabilities in the near term and over the long run. AMB has zero debt on its books as well, meaning it has no long term debt obligations to worry about.
Globe International Limited (ASX:GLB)
Globe International Limited produces and distributes purpose-built apparel, footwear, and skateboard hardgoods for the board sports, street fashion, and workwear markets. The company was established in 1984 and has a market cap of AUD A$48.51M, putting it in the small-cap stocks category.
GLB’s stock is now trading at -78% below its actual worth of $5.24, at a price of $1.17, according to my discounted cash flow model. signalling an opportunity to buy the stock at a low price. In terms of relative valuation, GLB’s PE ratio is currently around 9.5x relative to its luxury peer level of 20.9x, implying that relative to other stocks in the industry, GLB’s shares can be purchased for a lower price. GLB is also a financially healthy company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. GLB has zero debt on its books as well, meaning it has no long term debt obligations to worry about.
Gowing Bros. Limited (ASX:GOW)
Gowing Bros. Limited operates as an investment and wealth management company in Australia. Gowing Bros was formed in 1868 and with the market cap of AUD A$171.24M, it falls under the small-cap category.
GOW’s stock is now floating at around -45% beneath its actual value of $5.85, at a price of $3.21, according to my discounted cash flow model. This difference in price and value gives us a chance to buy low. Furthermore, GOW’s PE ratio stands at around 7.4x compared to its diversified financial peer level of 19.4x, suggesting that relative to its comparable company group, we can buy GOW’s stock at a cheaper price today. GOW also has a healthy balance sheet, with current assets covering liabilities in the near term and over the long run. It’s debt-to-equity ratio of 28% has been reducing over the past couple of years signalling its capacity to reduce its debt obligations year on year.For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our interactive list of undervalued stocks.