3 ASX Stocks That Could Be Trading Below Their Intrinsic Value

The Australian market has seen a 1.4% increase over the last week and is up 15% over the past 12 months, with earnings forecasted to grow by 12% annually. In this environment, identifying stocks that may be trading below their intrinsic value could offer investors opportunities for potential growth and solid returns.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name	Current Price	Fair Value (Est)	Discount (Est)
Hansen Technologies (ASX:HSN)	A$4.53	A$8.19	44.7%
Duratec (ASX:DUR)	A$1.42	A$2.59	45.2%
Ingenia Communities Group (ASX:INA)	A$5.17	A$9.37	44.8%
Genesis Minerals (ASX:GMD)	A$2.07	A$3.98	48%
Megaport (ASX:MP1)	A$7.35	A$13.50	45.5%
Charter Hall Group (ASX:CHC)	A$16.12	A$29.22	44.8%
Millennium Services Group (ASX:MIL)	A$1.145	A$2.24	48.9%
Ai-Media Technologies (ASX:AIM)	A$0.745	A$1.42	47.4%
Healius (ASX:HLS)	A$1.695	A$3.16	46.3%
Superloop (ASX:SLC)	A$1.755	A$3.31	47%

Click here to see the full list of 40 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Cettire (ASX:CTT)

Overview: Cettire Limited operates as an online luxury goods retailer in Australia, the United States, and internationally with a market cap of A$900 million.

Operations: Cettire Limited generates revenue primarily through online retail sales, amounting to A$742.26 million.

Estimated Discount To Fair Value: 19.5%

Cettire is trading at A$2.38, below its estimated fair value of A$2.96, indicating it may be undervalued based on cash flows. Despite a volatile share price and declining profit margins (1.4% vs 3.8% last year), earnings are forecast to grow 29% annually, outpacing the Australian market's 12.3%. Recent board appointments of Caroline Elliott and Jon Gidney bring extensive financial expertise, potentially strengthening governance and strategic direction amidst ongoing revenue growth projections for FY2025.

• The growth report we've compiled suggests that Cettire's future prospects could be on the up.
• Navigate through the intricacies of Cettire with our comprehensive financial health report here.

Regal Partners (ASX:RPL)

Overview: Regal Partners Limited (ASX:RPL) is a privately owned hedge fund sponsor with a market cap of A$1.13 billion.

Operations: Regal Partners generates revenue primarily through the provision of investment management services, amounting to A$198.50 million.

Estimated Discount To Fair Value: 41.2%

Regal Partners is trading at A$3.52, significantly below its estimated fair value of A$5.99, suggesting it may be undervalued based on cash flows. Despite recent shareholder dilution and a dividend not well covered by free cash flows, the company has shown impressive earnings growth of 1492.3% over the past year and is forecast to continue growing profits at 20.8% annually, outpacing market expectations. Recent inclusion in the S&P Global BMI Index could also enhance investor confidence.

• Our expertly prepared growth report on Regal Partners implies its future financial outlook may be stronger than recent results.
• Click here to discover the nuances of Regal Partners with our detailed financial health report.

SiteMinder (ASX:SDR)

Overview: SiteMinder Limited (ASX:SDR) develops, markets, and sells online guest acquisition platforms and commerce solutions for accommodation providers in Australia and internationally, with a market cap of A$1.49 billion.

Operations: Revenue from the Software & Programming segment is A$190.84 million.

Estimated Discount To Fair Value: 26.9%

SiteMinder, trading at A$5.4, is significantly undervalued with an estimated fair value of A$7.38 based on discounted cash flows. The company reported a substantial increase in sales to A$190.67 million for the year ended June 30, 2024, while net loss narrowed to A$25.13 million from A$49.3 million a year ago. Earnings are forecast to grow 60.31% annually, and SiteMinder is expected to become profitable within three years, outperforming market growth expectations.

• The analysis detailed in our SiteMinder growth report hints at robust future financial performance.
• Unlock comprehensive insights into our analysis of SiteMinder stock in this financial health report.

Seize The Opportunity

• Unlock our comprehensive list of 40 Undervalued ASX Stocks Based On Cash Flows by clicking here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com