3 ASX Stocks Estimated To Be Up To 42.8% Below Intrinsic Value

Amidst recent market fluctuations, with Australian shares poised for a potential bounceback following one of the toughest trading days of 2025, investors are eyeing opportunities on the ASX. In such volatile times, identifying stocks that are perceived to be undervalued can be particularly appealing, offering potential value against current market conditions.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

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

Below we spotlight a couple of our favorites from our exclusive screener.

Integral Diagnostics (ASX:IDX)

Overview: Integral Diagnostics Limited is a healthcare services company that provides diagnostic imaging services to medical professionals and patients in Australia and New Zealand, with a market cap of A$843.54 million.

Operations: Revenue for Integral Diagnostics is primarily generated from the operation of diagnostic imaging facilities, amounting to A$491.32 million.

Estimated Discount To Fair Value: 42.8%

Integral Diagnostics (IDX) is trading at A$2.27, significantly below its estimated fair value of A$3.97, suggesting it may be undervalued based on cash flows. Despite a recent net loss of A$0.396 million for H1 2025, IDX's earnings are expected to grow substantially over the next three years at 40.2% per year, outpacing the Australian market's growth rate of 11.8%. However, interest payments are not well covered by earnings and private equity interest remains high following a drop in market value to A$837 million after recent results.

• Insights from our recent growth report point to a promising forecast for Integral Diagnostics' business outlook.
• Click to explore a detailed breakdown of our findings in Integral Diagnostics' balance sheet health report.

James Hardie Industries (ASX:JHX)

Overview: James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for construction applications across the United States, Australia, Europe, New Zealand, and the Philippines with a market cap of A$15.89 billion.

Operations: The company's revenue segments are comprised of North America Fiber Cement at $2.88 billion, Asia Pacific Fiber Cement at $543.30 million, and Europe Building Products at $488 million.

Estimated Discount To Fair Value: 34.4%

James Hardie Industries, trading at A$36.98, is substantially below its estimated fair value of A$56.41, highlighting potential undervaluation based on cash flows. The company's earnings are projected to grow annually by 18.1%, outpacing the Australian market's 11.8% growth rate. Recent acquisition plans with The AZEK Company Inc., alongside a strategic partnership with David Weekley Homes, could enhance long-term growth prospects despite recent stable earnings performance and slight revenue decline year-over-year.

• Our growth report here indicates James Hardie Industries may be poised for an improving outlook.
• Click here to discover the nuances of James Hardie Industries with our detailed financial health report.

Select Harvests (ASX:SHV)

Overview: Select Harvests Limited is an Australian company involved in the cultivation, processing, packaging, and sale of almonds and its by-products, with a market cap of A$724.75 million.

Operations: The company's revenue is primarily derived from its almond segment, which generated A$337.29 million.

Estimated Discount To Fair Value: 18.3%

Select Harvests, trading at A$5.1, is undervalued compared to its fair value estimate of A$6.24 and offers significant earnings growth potential with a forecasted 34.3% annual increase, surpassing the Australian market's 11.8%. Despite recent shareholder dilution and large one-off items affecting earnings quality, revenue is expected to grow faster than the market at 9% annually. Recent executive changes include appointing Liam Nolan as CFO and Mark Rhys Davies as Joint Company Secretaries.

• The analysis detailed in our Select Harvests growth report hints at robust future financial performance.
• Navigate through the intricacies of Select Harvests with our comprehensive financial health report here.

Summing It All Up

• Discover the full array of 40 Undervalued ASX Stocks Based On Cash Flows right here.
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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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