Stock Analysis

3 Stocks That May Be Trading Below Their Estimated Value In November 2024

ENXTPA:VIV
Source: Shutterstock

As global markets experience broad-based gains with U.S. indexes approaching record highs, investor sentiment is buoyed by a strong labor market and positive home sales reports, despite ongoing geopolitical tensions and economic uncertainties. In this context of mixed signals and cautious optimism, identifying stocks that may be trading below their estimated value can offer opportunities for investors looking to capitalize on potential market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Victory Capital Holdings (NasdaqGS:VCTR)US$72.24US$144.0349.8%
NBT Bancorp (NasdaqGS:NBTB)US$50.12US$99.9349.8%
Synovus Financial (NYSE:SNV)US$57.97US$115.6749.9%
CS Wind (KOSE:A112610)₩42100.00₩83493.5749.6%
Tongqinglou Catering (SHSE:605108)CN¥21.71CN¥43.3749.9%
Intermedical Care and Lab Hospital (SET:IMH)THB4.94THB9.8549.8%
EuroGroup Laminations (BIT:EGLA)€2.728€5.4249.7%
Nidaros Sparebank (OB:NISB)NOK100.00NOK198.6249.7%
Nutanix (NasdaqGS:NTNX)US$72.35US$143.9949.8%
VerticalScope Holdings (TSX:FORA)CA$9.01CA$18.0150%

Click here to see the full list of 916 stocks from our Undervalued Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Vivendi (ENXTPA:VIV)

Overview: Vivendi SE is a global entertainment, media, and communication company with operations across Europe, the Americas, Asia/Oceania, and Africa, and has a market cap of approximately €8.90 billion.

Operations: The company's revenue segments include Canal+ Group (€6.20 billion), Havas Group (€2.92 billion), Gameloft (€304 million), Prisma Media (€303 million), Vivendi Village (€151 million), and New Initiatives (€176 million).

Estimated Discount To Fair Value: 48.2%

Vivendi's recent financial performance and forecasts suggest it is undervalued based on cash flows. The company's revenues surged to €4.75 billion in Q3 2024, largely due to Lagardère's consolidation, while earnings are expected to grow significantly at 31.1% annually, outpacing the French market. Trading at approximately 48% below its estimated fair value of €17.04 per share, Vivendi presents potential for appreciation despite a low forecasted return on equity and an unstable dividend track record.

ENXTPA:VIV Discounted Cash Flow as at Nov 2024
ENXTPA:VIV Discounted Cash Flow as at Nov 2024

Ypsomed Holding (SWX:YPSN)

Overview: Ypsomed Holding AG, with a market cap of CHF4.87 billion, develops, manufactures, and sells injection and infusion systems for pharmaceutical and biotechnology companies through its subsidiaries.

Operations: The company's revenue segments include Ypsomed Diabetes Care, generating CHF176.61 million, and Ypsomed Delivery Systems, contributing CHF428.94 million.

Estimated Discount To Fair Value: 32%

Ypsomed Holding appears undervalued based on cash flows, trading at CHF356.5, well below its estimated fair value of CHF524.2. Despite a volatile share price and high debt levels, earnings are projected to grow significantly at 41.13% annually, surpassing the Swiss market's growth rate. Recent earnings showed a decline in net income compared to last year; however, product approvals like the mylife YpsoPump in Canada could boost future revenue streams.

SWX:YPSN Discounted Cash Flow as at Nov 2024
SWX:YPSN Discounted Cash Flow as at Nov 2024

Lundin Gold (TSX:LUG)

Overview: Lundin Gold Inc. is a Canadian mining company with a market capitalization of CA$7.63 billion.

Operations: The company generates revenue from its Fruta Del Norte segment, amounting to $1.04 billion.

Estimated Discount To Fair Value: 45.4%

Lundin Gold shows potential as an undervalued stock based on cash flows, trading at CA$32.24, significantly below its estimated fair value of CA$59.04. Recent earnings reveal strong performance with a net income increase to US$135.72 million for Q3 2024 from US$53.78 million the previous year. Despite insider selling, ongoing high-grade drilling results at Fruta del Norte could bolster future resource estimates and potentially enhance cash flows further.

TSX:LUG Discounted Cash Flow as at Nov 2024
TSX:LUG Discounted Cash Flow as at Nov 2024

Summing It All Up

  • Embark on your investment journey to our 916 Undervalued Stocks Based On Cash Flows selection 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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