3 Stocks That May Be Trading Below Estimated Value By Up To 40.1%

As global markets navigate mixed signals, with the S&P 500 Index capping off a strong two-year stretch despite recent profit-taking and economic uncertainties like the Chicago PMI's contraction, investors are increasingly on the lookout for opportunities that may be undervalued. In such an environment, identifying stocks trading below their estimated value can be particularly appealing, as these investments might offer potential upside when market conditions stabilize or improve.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Avant Group (TSE:3836)	¥1878.00	¥3755.66	50%
NBTM New Materials Group (SHSE:600114)	CN¥15.55	CN¥31.07	49.9%
Gaming Realms (AIM:GMR)	£0.36	£0.72	49.9%
Sudarshan Chemical Industries (BSE:506655)	₹1120.30	₹2232.36	49.8%
Kinaxis (TSX:KXS)	CA$170.99	CA$340.11	49.7%
ReadyTech Holdings (ASX:RDY)	A$3.15	A$6.30	50%
Vogo (ENXTPA:ALVGO)	€2.94	€5.87	49.9%
Exosens (ENXTPA:EXENS)	€22.505	€44.77	49.7%
iFLYTEKLTD (SZSE:002230)	CN¥45.41	CN¥90.65	49.9%
Salmones Camanchaca (SNSE:SALMOCAM)	CLP2434.90	CLP4848.26	49.8%

Click here to see the full list of 885 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

DAEDUCK ELECTRONICS (KOSE:A353200)

Overview: Daeduck Electronics Co., Ltd. is a company that provides various printed circuit boards (PCB) in South Korea and internationally, with a market cap of ₩847.26 billion.

Operations: The company's revenue is primarily derived from its manufacture and sale of printed circuit boards, amounting to ₩920.01 billion.

Estimated Discount To Fair Value: 40.1%

DAEDUCK ELECTRONICS appears undervalued, trading at ₩16,800, which is 40.1% below its estimated fair value of ₩28,031.16. Despite lower profit margins this year (2.6% vs. 4.3% last year), earnings are forecast to grow significantly at 58% annually over the next three years, surpassing market expectations of 29%. However, revenue growth is moderate at 13.2%, and the dividend track record remains unstable amidst these promising cash flow indicators.

• Our growth report here indicates DAEDUCK ELECTRONICS may be poised for an improving outlook.
• Delve into the full analysis health report here for a deeper understanding of DAEDUCK ELECTRONICS.

Dr. Soliman Abdel Kader Fakeeh Hospital (SASE:4017)

Overview: Dr. Soliman Abdel Kader Fakeeh Hospital Company operates and manages hospitals, clinics, and medical educational centers in Saudi Arabia with a market cap of SAR15.76 billion.

Operations: The company's revenue segments consist of Education (SAR111.78 million), Medical Services (SAR2.53 billion), and Trading, Retail & Others (SAR222.64 million).

Estimated Discount To Fair Value: 23.4%

Dr. Soliman Abdel Kader Fakeeh Hospital is trading at SAR68.5, which is 23.4% below its fair value estimate of SAR89.39, indicating it may be undervalued based on cash flows. Earnings are projected to grow significantly at 20.52% annually over the next three years, outpacing the Saudi Arabian market's growth rate of 6%. However, its return on equity is forecasted to be modest at 14.5%. Recent inclusion in major indices could enhance visibility and investor interest.

• Our expertly prepared growth report on Dr. Soliman Abdel Kader Fakeeh Hospital implies its future financial outlook may be stronger than recent results.
• Navigate through the intricacies of Dr. Soliman Abdel Kader Fakeeh Hospital with our comprehensive financial health report here.

Zhejiang Yinlun MachineryLtd (SZSE:002126)

Overview: Zhejiang Yinlun Machinery Co., Ltd. researches, develops, manufactures, and sells thermal management and exhaust gas after-treatment products with a market cap of CN¥16.37 billion.

Operations: Zhejiang Yinlun Machinery Co., Ltd. generates its revenue from the production and sale of thermal management and exhaust gas after-treatment products.

Estimated Discount To Fair Value: 22.8%

Zhejiang Yinlun Machinery Ltd. is trading at CN¥19.7, significantly below its fair value estimate of CN¥25.53, highlighting its undervaluation based on cash flows. Earnings grew by 29.8% last year and are expected to increase by 26.3% annually over the next three years, surpassing the Chinese market's growth rate of 25.2%. Recent inclusion in Shenzhen Stock Exchange indices may boost visibility and investor interest despite a low forecasted return on equity of 16%.

• Our earnings growth report unveils the potential for significant increases in Zhejiang Yinlun MachineryLtd's future results.
• Click here to discover the nuances of Zhejiang Yinlun MachineryLtd with our detailed financial health report.

Make It Happen

• Dive into all 885 of the Undervalued Stocks Based On Cash Flows we have identified 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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