TSX Stocks That May Be Trading Below Their Estimated Value

As the Canadian market navigates a period of sideways consolidation and heightened volatility, investors are keenly aware of the importance of diversification and strategic rebalancing to fortify portfolios against potential corrections. In this environment, identifying stocks that may be trading below their estimated value can offer opportunities for those looking to capitalize on cyclical shifts and broadened market leadership.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name	Current Price	Fair Value (Est)	Discount (Est)
Tourmaline Oil (TSX:TOU)	CA$66.75	CA$128.26	48%
Docebo (TSX:DCBO)	CA$46.40	CA$89.15	48%
Decisive Dividend (TSXV:DE)	CA$6.15	CA$11.48	46.4%
Major Drilling Group International (TSX:MDI)	CA$8.22	CA$14.64	43.9%
Groupe Dynamite (TSX:GRGD)	CA$15.45	CA$28.26	45.3%
Electrovaya (TSX:ELVA)	CA$3.10	CA$5.96	48%
Quisitive Technology Solutions (TSXV:QUIS)	CA$0.57	CA$1.07	46.7%
Wishpond Technologies (TSXV:WISH)	CA$0.32	CA$0.57	43.8%
Enterprise Group (TSX:E)	CA$2.13	CA$4.15	48.6%
Condor Energies (TSX:CDR)	CA$1.82	CA$3.41	46.6%

Click here to see the full list of 29 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Aritzia (TSX:ATZ)

Overview: Aritzia Inc., along with its subsidiaries, designs, develops, and sells apparel and accessories for women in the United States and Canada, with a market cap of CA$7.62 billion.

Operations: The company generates revenue primarily from its apparel segment, which amounts to CA$2.52 billion.

Estimated Discount To Fair Value: 19.2%

Aritzia's current trading price of CA$66.64 is below its estimated fair value of CA$82.49, indicating potential undervaluation based on cash flows. Despite recent insider selling, the company's earnings are forecast to grow significantly at 41.1% annually, outpacing the Canadian market's 15.8%. Recent financial results showed strong performance with increased net income and sales compared to last year, enhancing its appeal as a cash flow-based investment opportunity in Canada.

• The growth report we've compiled suggests that Aritzia's future prospects could be on the up.
• Get an in-depth perspective on Aritzia's balance sheet by reading our health report here.

Computer Modelling Group (TSX:CMG)

Overview: Computer Modelling Group Ltd. is a software and consulting technology company that develops and licenses reservoir simulation and seismic interpretation software, with a market cap of CA$668.56 million.

Operations: The company generates revenue from two main segments: Seismic Solutions, contributing CA$37.62 million, and Reservoir & Production Solutions, contributing CA$90.44 million.

Estimated Discount To Fair Value: 30.6%

Computer Modelling Group's current price of CA$8.11 is significantly below its estimated fair value of CA$11.69, highlighting potential undervaluation based on cash flows. The company's earnings are projected to grow at 20.3% annually, surpassing the Canadian market's growth rate of 15.8%. Recent financial results showed increased quarterly sales and net income compared to last year, although insider selling has been significant recently, which may warrant caution for investors considering this stock.

• Our expertly prepared growth report on Computer Modelling Group implies its future financial outlook may be stronger than recent results.
• Click to explore a detailed breakdown of our findings in Computer Modelling Group's balance sheet health report.

OceanaGold (TSX:OGC)

Overview: OceanaGold Corporation is a gold and copper producer involved in the exploration, development, and operation of mineral properties in the United States, the Philippines, and New Zealand with a market cap of CA$2.73 billion.

Operations: The company's revenue segments include Haile at $513.40 million, Waihi at $138 million, Didipio at $342.90 million, and Macraes at $299.70 million.

Estimated Discount To Fair Value: 32.3%

OceanaGold's current price of CA$3.88 is below its estimated fair value of CA$5.73, indicating undervaluation based on cash flows. The company's earnings grew significantly last year and are projected to grow at 27.3% annually, outpacing the Canadian market's growth rate of 15.8%. Recent exploration results from the Haile Gold Mine show promising gold intercepts, and a new board appointment adds strategic depth, enhancing its potential for future growth and stability.

• Our comprehensive growth report raises the possibility that OceanaGold is poised for substantial financial growth.
• Dive into the specifics of OceanaGold here with our thorough financial health report.

Taking Advantage

• Explore the 29 names from our Undervalued TSX Stocks Based On Cash Flows screener here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Curious About Other Options?

• 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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