ASX Stocks Estimated To Be Trading Below Intrinsic Value In August 2025

As the Australian market experiences a pause in its recent bull run, with sectors like healthcare facing challenges and IT showing resilience, investors are keenly observing which stocks might be trading below their intrinsic value. In this environment of mixed results and sector-specific fluctuations, identifying undervalued stocks becomes crucial for those looking to make informed investment decisions.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name	Current Price	Fair Value (Est)	Discount (Est)
Vysarn (ASX:VYS)	A$0.575	A$0.98	41.4%
Reckon (ASX:RKN)	A$0.625	A$1.19	47.4%
ReadyTech Holdings (ASX:RDY)	A$2.58	A$5.02	48.6%
PointsBet Holdings (ASX:PBH)	A$1.26	A$2.13	40.9%
LGI (ASX:LGI)	A$3.99	A$7.95	49.8%
James Hardie Industries (ASX:JHX)	A$44.34	A$80.69	45%
Elders (ASX:ELD)	A$7.50	A$14.04	46.6%
Collins Foods (ASX:CKF)	A$9.19	A$16.04	42.7%
Austal (ASX:ASB)	A$6.64	A$13.18	49.6%
Advanced Braking Technology (ASX:ABV)	A$0.097	A$0.16	40.6%

Click here to see the full list of 37 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener.

Emerald Resources (ASX:EMR)

Overview: Emerald Resources NL focuses on the exploration and development of mineral reserves in Cambodia and Australia, with a market cap of A$2.32 billion.

Operations: The company generates revenue primarily from its mine operations, amounting to A$427.32 million.

Estimated Discount To Fair Value: 11.5%

Emerald Resources is trading at A$3.52, slightly below its estimated fair value of A$3.98, suggesting it may be undervalued based on cash flows. With anticipated annual earnings growth of 36% and revenue growth of 22.3%, both exceeding market averages, the company shows strong future potential. Recent updates indicate steady gold production from the Okvau Gold Mine, with projections up to 125Koz for 2026, supporting its robust cash flow outlook.

• In light of our recent growth report, it seems possible that Emerald Resources' financial performance will exceed current levels.
• Take a closer look at Emerald Resources' balance sheet health here in our report.

James Hardie Industries (ASX:JHX)

Overview: James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded boards across the United States, Australia, Europe, and New Zealand with a market cap of A$25.67 billion.

Operations: James Hardie Industries generates revenue from its segments as follows: $494.30 million from Europe Building Products, $519.90 million from Asia Pacific Fiber Cement, and $2.86 billion from North America Fiber Cement.

Estimated Discount To Fair Value: 45%

James Hardie Industries is trading at A$44.34, significantly below its estimated fair value of A$80.69, highlighting its potential undervaluation based on cash flows. Forecasts suggest earnings growth of 19.8% annually, outpacing the broader Australian market's growth rate. However, recent shareholder dilution and a substantial acquisition of The AZEK Company could impact financial stability despite high return on equity projections and robust revenue growth expectations above market averages.

• Our earnings growth report unveils the potential for significant increases in James Hardie Industries' future results.
• Unlock comprehensive insights into our analysis of James Hardie Industries stock in this financial health report.

Lynas Rare Earths (ASX:LYC)

Overview: Lynas Rare Earths Limited is involved in the exploration, development, mining, extraction, and processing of rare earth minerals in Australia and Malaysia with a market cap of A$14.12 billion.

Operations: The company's revenue is primarily derived from its rare earth operations, totaling A$482.82 million.

Estimated Discount To Fair Value: 20.4%

Lynas Rare Earths is trading at A$15.09, below its estimated fair value of A$18.95, indicating potential undervaluation based on cash flows. Earnings are projected to grow 49.3% annually, surpassing the Australian market's growth rate and highlighting significant revenue expansion prospects at 27.9% per year. Despite improved profit margins from last year, they remain modest at 10.5%. Return on equity is forecasted to be low in three years, potentially impacting long-term valuation perspectives.

• Our growth report here indicates Lynas Rare Earths may be poised for an improving outlook.
• Delve into the full analysis health report here for a deeper understanding of Lynas Rare Earths.

Seize The Opportunity

• Delve into our full catalog of 37 Undervalued ASX Stocks Based On Cash Flows here.
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Interested In Other Possibilities?

• 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.

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