3 Stocks Estimated To Be Trading At Up To 46.2% Below Intrinsic Value

As global markets continue to reach record highs, driven by a mix of domestic policies and geopolitical developments, investors are increasingly attentive to opportunities that may be undervalued amidst the broader market rally. In this context, identifying stocks trading below their intrinsic value can offer potential for significant gains, especially when these stocks demonstrate strong fundamentals despite current market fluctuations.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
NBT Bancorp (NasdaqGS:NBTB)	US$50.12	US$99.93	49.8%
Giant Biogene Holding (SEHK:2367)	HK$48.30	HK$96.33	49.9%
PharmaResearch (KOSDAQ:A214450)	₩213500.00	₩425786.18	49.9%
Stille (OM:STIL)	SEK220.00	SEK437.81	49.7%
Power Root Berhad (KLSE:PWROOT)	MYR1.46	MYR2.92	50%
EnomotoLtd (TSE:6928)	¥1460.00	¥2918.40	50%
Mobvista (SEHK:1860)	HK$8.55	HK$15.99	46.5%
EQL Pharma (OM:EQL)	SEK77.00	SEK153.58	49.9%
Sands China (SEHK:1928)	HK$20.30	HK$40.57	50%
Hesai Group (NasdaqGS:HSAI)	US$8.18	US$16.30	49.8%

Click here to see the full list of 907 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

BYD (SEHK:1211)

Overview: BYD Company Limited, along with its subsidiaries, operates in the automobiles and batteries sectors across China, Hong Kong, Macau, Taiwan, and internationally with a market cap of HK$812.13 billion.

Operations: The company's revenue is primarily generated from its automobiles and batteries sectors across various regions, including China, Hong Kong, Macau, Taiwan, and international markets.

Estimated Discount To Fair Value: 18.4%

BYD is trading at HK$259.8, below its estimated fair value of HK$318.37, suggesting potential undervaluation based on cash flows. The company's earnings are projected to grow faster than the Hong Kong market at 17.7% annually, with a high future return on equity forecasted at 23.1%. Recent strategic partnerships and increased production volumes reinforce BYD's growth trajectory, although revenue growth remains moderate compared to higher benchmarks.

• Insights from our recent growth report point to a promising forecast for BYD's business outlook.
• Unlock comprehensive insights into our analysis of BYD stock in this financial health report.

NBTM New Materials Group (SHSE:600114)

Overview: NBTM New Materials Group Co., Ltd. is engaged in the production and sale of powder metallurgy mechanical parts globally, with a market cap of CN¥9.76 billion.

Operations: NBTM New Materials Group Co., Ltd. generates its revenue from the production and sale of powder metallurgy mechanical parts on a global scale.

Estimated Discount To Fair Value: 40.3%

NBTM New Materials Group is trading at CN¥16.97, significantly below its estimated fair value of CN¥28.42, highlighting potential undervaluation based on cash flows. The company reported robust earnings growth of 117.8% over the past year and forecasts revenue growth exceeding 20% annually, surpassing market expectations. However, the dividend yield of 1.18% is not well supported by free cash flows, and debt coverage by operating cash flow remains a concern despite positive earnings momentum.

• Our growth report here indicates NBTM New Materials Group may be poised for an improving outlook.
• Take a closer look at NBTM New Materials Group's balance sheet health here in our report.

Greenworks (Jiangsu) (SZSE:301260)

Overview: Greenworks (Jiangsu) Co., Ltd. focuses on the research and development, design, production, and sale of garden machinery with a market cap of CN¥6.89 billion.

Operations: The company's revenue primarily comes from its Farm Machinery & Equipment segment, generating CN¥5.13 billion.

Estimated Discount To Fair Value: 46.2%

Greenworks (Jiangsu) is trading at CN¥14.28, substantially below its estimated fair value of CN¥27.58, suggesting it may be undervalued based on cash flows. The company reported a net income of CN¥9.3 million for the nine months ending September 2024, reversing a previous loss, and earnings are expected to grow by 71.88% annually as profitability is anticipated within three years. However, return on equity remains low with forecasts at 8.4%.

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

Where To Now?

• Click this link to deep-dive into the 907 companies within our Undervalued Stocks Based On Cash Flows screener.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Seeking Other Investments?

• 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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