Stock Analysis

3 Stocks Estimated To Be Up To 40.4% Below Intrinsic Value

SZSE:003032
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In the wake of recent political shifts and economic policy adjustments, global markets have shown a mix of optimism and caution, with U.S. stocks rallying to record highs amid expectations for growth-friendly policies. As investors navigate this evolving landscape, identifying undervalued stocks can present opportunities to capitalize on market inefficiencies, particularly when these equities are trading significantly below their intrinsic value amidst broader economic changes.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Arteche Lantegi Elkartea (BME:ART)€6.05€12.0149.6%
Appier Group (TSE:4180)¥1700.00¥3393.1149.9%
XPEL (NasdaqCM:XPEL)US$45.67US$91.1249.9%
Cettire (ASX:CTT)A$1.585A$2.9446.1%
AirBoss of America (TSX:BOS)CA$4.05CA$8.2751%
Mona YongpyongLtd (KOSE:A070960)₩3380.00₩6757.7750%
KeePer Technical Laboratory (TSE:6036)¥3900.00¥7791.6049.9%
Redcentric (AIM:RCN)£1.1625£2.3250%
Nayuki Holdings (SEHK:2150)HK$1.59HK$3.1649.7%
QuinStreet (NasdaqGS:QNST)US$23.42US$46.5249.7%

Click here to see the full list of 901 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Qt Group Oyj (HLSE:QTCOM)

Overview: Qt Group Oyj provides cross-platform software development solutions across multiple countries, with a market cap of €1.77 billion.

Operations: The company's revenue is primarily generated from its Software Development Tools segment, totaling €195.71 million.

Estimated Discount To Fair Value: 40.4%

Qt Group Oyj is currently trading at €69.6, significantly below its estimated fair value of €116.79, suggesting it is undervalued based on discounted cash flow analysis. Despite recent insider selling and high share price volatility, the company's earnings are expected to grow significantly at 21.15% annually over the next three years, outpacing the Finnish market growth rate of 14.4%. However, recent corporate guidance has slightly lowered revenue growth expectations for 2024.

HLSE:QTCOM Discounted Cash Flow as at Nov 2024
HLSE:QTCOM Discounted Cash Flow as at Nov 2024

Jiangsu Chuanzhiboke Education Technology (SZSE:003032)

Overview: Jiangsu Chuanzhiboke Education Technology Co., LTD operates in the education technology sector and has a market cap of CN¥4.50 billion.

Operations: Unfortunately, the provided text does not contain specific revenue segment information for Jiangsu Chuanzhiboke Education Technology Co., LTD.

Estimated Discount To Fair Value: 39.9%

Jiangsu Chuanzhiboke Education Technology is trading at CNY 11.17, considerably below its estimated fair value of CNY 18.59, indicating undervaluation based on discounted cash flow analysis. The company has faced recent financial challenges, with declining sales and a net loss reported for the first nine months of 2024. However, it is projected to achieve profitability within three years with revenue growth forecasted at 27.6% annually, surpassing the broader Chinese market's growth rate.

SZSE:003032 Discounted Cash Flow as at Nov 2024
SZSE:003032 Discounted Cash Flow as at Nov 2024

Zhejiang Songyuan Automotive Safety SystemsLtd (SZSE:300893)

Overview: Zhejiang Songyuan Automotive Safety Systems Co., Ltd. operates in the automotive safety sector and has a market cap of CN¥7.53 billion.

Operations: The company's revenue from the Auto Parts & Accessories segment is CN¥1.78 billion.

Estimated Discount To Fair Value: 35.2%

Zhejiang Songyuan Automotive Safety Systems is trading at CN¥33.27, significantly below its estimated fair value of CN¥51.38, highlighting its undervaluation based on cash flow analysis. The company's earnings grew 73.6% over the past year and are projected to rise 28.1% annually, outpacing China's market growth rate of 26.2%. Despite high debt levels and a dividend not well covered by free cash flows, revenue growth remains robust at 24.8% per year.

SZSE:300893 Discounted Cash Flow as at Nov 2024
SZSE:300893 Discounted Cash Flow as at Nov 2024

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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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