3 Stocks That Might Be Priced Up To 47% Below Intrinsic Value Estimates

As global markets react to rising U.S. Treasury yields, with the S&P 500 Index finishing lower after a six-week streak of gains, investors are increasingly focused on finding value amidst shifting economic conditions. In such an environment, identifying stocks that may be undervalued relative to their intrinsic value estimates can offer potential opportunities for those seeking to navigate the current market landscape effectively.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Beyout Investment Group Holding Company - K.S.C. (Holding) (KWSE:BEYOUT)	KWD0.395	KWD0.79	49.9%
Acerinox (BME:ACX)	€8.52	€16.98	49.8%
Alibaba Pictures Group (SEHK:1060)	HK$0.48	HK$0.95	49.7%
Enento Group Oyj (HLSE:ENENTO)	€18.40	€36.57	49.7%
WEX (NYSE:WEX)	US$172.60	US$343.98	49.8%
Beijing LeiKe Defense Technology (SZSE:002413)	CN¥4.72	CN¥9.42	49.9%
BuySell TechnologiesLtd (TSE:7685)	¥3970.00	¥7922.08	49.9%
Fine Foods & Pharmaceuticals N.T.M (BIT:FF)	€8.36	€16.70	49.9%
Shinsung E&GLtd (KOSE:A011930)	₩1438.00	₩2858.97	49.7%
Sinch (OM:SINCH)	SEK31.45	SEK62.48	49.7%

Click here to see the full list of 958 stocks from our Undervalued Stocks Based On Cash Flows screener.

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

Gujarat Fluorochemicals (NSEI:FLUOROCHEM)

Overview: Gujarat Fluorochemicals Limited is involved in the manufacture and trading of bulk chemicals, refrigerant gases, fluorochemicals, and fluoropolymers across India, Europe, the United States, and internationally with a market cap of ₹473.24 billion.

Operations: The company's revenue segments include chemicals, which generated ₹44.89 billion.

Estimated Discount To Fair Value: 34%

Gujarat Fluorochemicals is trading at ₹4,308.10, significantly below its estimated fair value of ₹6,530.96, suggesting undervaluation based on discounted cash flow analysis. Despite a dip in profit margins from 18.1% to 9.1%, the company reported robust revenue growth of INR 11,970 million for Q2 2024 compared to INR 9,600 million a year ago. Earnings are forecasted to grow substantially at an annual rate of over 46%.

• The growth report we've compiled suggests that Gujarat Fluorochemicals' future prospects could be on the up.
• Take a closer look at Gujarat Fluorochemicals' balance sheet health here in our report.

dormakaba Holding (SWX:DOKA)

Overview: dormakaba Holding AG is a global provider of access and security solutions with a market capitalization of CHF2.77 billion.

Operations: The company's revenue segments include Access Solutions, generating CHF2.41 billion, and Key & Wall Solutions and OEM, contributing CHF484.40 million.

Estimated Discount To Fair Value: 47%

dormakaba Holding is trading at CHF 662, considerably below its estimated fair value of CHF 1,249.93, highlighting significant undervaluation based on discounted cash flow analysis. Despite a slight decline in net income to CHF 42.2 million for the year ended June 30, 2024, earnings are projected to grow substantially at an annual rate of over 36%, outpacing the Swiss market's growth rate. However, the company carries a high level of debt.

• Insights from our recent growth report point to a promising forecast for dormakaba Holding's business outlook.
• Delve into the full analysis health report here for a deeper understanding of dormakaba Holding.

PARK24 (TSE:4666)

Overview: PARK24 Co., Ltd. operates and manages parking facilities both in Japan and internationally, with a market cap of ¥326 billion.

Operations: The company's revenue segments include the Mobility Business at ¥107.36 million, Parking Lot Business in Japan at ¥178.06 million, and Parking Lot Business Overseas at ¥79.23 million.

Estimated Discount To Fair Value: 25.4%

PARK24 is trading at ¥1,889, significantly below its estimated fair value of ¥2,533.33, suggesting undervaluation based on discounted cash flow analysis. The company anticipates earnings growth of 16.35% annually, outpacing the Japanese market's average rate. However, PARK24 carries a high level of debt which could impact financial flexibility. Recent strategic initiatives include a pilot rideshare service with Uber Japan that may enhance future revenue streams if commercialized successfully.

• The analysis detailed in our PARK24 growth report hints at robust future financial performance.
• Click to explore a detailed breakdown of our findings in PARK24's balance sheet health report.

Turning Ideas Into Actions

• Investigate our full lineup of 958 Undervalued Stocks Based On Cash Flows right here.
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Searching for a Fresh Perspective?

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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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