3 Stocks That May Be Undervalued By The Market In December 2024

As global markets continue to reach record highs, driven by a mix of domestic policy shifts and geopolitical developments, the search for undervalued stocks becomes increasingly pertinent. In this environment, identifying stocks that may be overlooked by the market can offer opportunities for investors who focus on fundamental strengths and potential growth prospects amidst broader economic trends.

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%
DO & CO (WBAG:DOC)	€160.00	€317.77	49.6%
Stille (OM:STIL)	SEK220.00	SEK437.81	49.7%
Mobvista (SEHK:1860)	HK$8.00	HK$15.99	50%
Nidaros Sparebank (OB:NISB)	NOK100.00	NOK198.62	49.7%
Shanghai INT Medical Instruments (SEHK:1501)	HK$27.25	HK$54.31	49.8%
Charter Hall Group (ASX:CHC)	A$15.72	A$31.22	49.6%
EQL Pharma (OM:EQL)	SEK77.00	SEK153.58	49.9%
Hd Hyundai MipoLtd (KOSE:A010620)	₩125600.00	₩249514.81	49.7%
Hesai Group (NasdaqGS:HSAI)	US$8.18	US$16.30	49.8%

Click here to see the full list of 920 stocks from our Undervalued Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Alibaba Pictures Group (SEHK:1060)

Overview: Alibaba Pictures Group Limited is an investment holding company engaged in content, technology, and IP merchandising and commercialization in Hong Kong and the People's Republic of China, with a market cap of approximately HK$12.63 billion.

Operations: The company generates revenue through its operations in content creation, technology services, and IP merchandising and commercialization within Hong Kong and the People's Republic of China.

Estimated Discount To Fair Value: 29.1%

Alibaba Pictures Group's recent earnings report showed a decline in net income to CNY 336.6 million, despite sales increasing to CNY 3.05 billion. The stock is trading at HK$0.43, significantly below its estimated fair value of HK$0.6, suggesting undervaluation based on discounted cash flow analysis. Earnings are forecasted to grow significantly at nearly 45% annually over the next three years, outpacing the Hong Kong market's growth rate of 11.3%.

• In light of our recent growth report, it seems possible that Alibaba Pictures Group's financial performance will exceed current levels.
• Navigate through the intricacies of Alibaba Pictures Group with our comprehensive financial health report here.

China Resources Mixc Lifestyle Services (SEHK:1209)

Overview: China Resources Mixc Lifestyle Services Limited is an investment holding company offering property management and commercial operational services in the People's Republic of China, with a market cap of HK$66.76 billion.

Operations: The company generates revenue from its property management business, amounting to CN¥10.22 billion, and its commercial management business, totaling CN¥5.71 billion.

Estimated Discount To Fair Value: 43.5%

China Resources Mixc Lifestyle Services is trading at HK$29.25, which is 43.5% below its estimated fair value of HK$51.74, indicating significant undervaluation based on discounted cash flow analysis. While earnings are forecast to grow at 14.3% annually—faster than the Hong Kong market's 11.3%—revenue growth of 16% per year also surpasses the market average of 7.8%. The return on equity is expected to be high in three years, reaching 22.9%.

• Our growth report here indicates China Resources Mixc Lifestyle Services may be poised for an improving outlook.
• Dive into the specifics of China Resources Mixc Lifestyle Services here with our thorough financial health report.

Shandong Weigao Orthopaedic Device (SHSE:688161)

Overview: Shandong Weigao Orthopaedic Device Co., Ltd. operates in the medical device industry, specializing in orthopaedic products, with a market cap of approximately CN¥11.26 billion.

Operations: The company's revenue primarily comes from its medical products segment, totaling CN¥1.28 billion.

Estimated Discount To Fair Value: 41%

Shandong Weigao Orthopaedic Device is trading at CN¥28.33, significantly below its estimated fair value of CN¥48.03, highlighting substantial undervaluation based on cash flow analysis. Earnings are projected to grow 30.4% annually over the next three years, outpacing the Chinese market's 26.2%. Despite strong profit growth expectations, revenue growth is forecast at a slower pace of 19.3% per year, and return on equity remains low at an anticipated 7.7%.

• Our expertly prepared growth report on Shandong Weigao Orthopaedic Device implies its future financial outlook may be stronger than recent results.
• Unlock comprehensive insights into our analysis of Shandong Weigao Orthopaedic Device stock in this financial health report.

Next Steps

• Discover the full array of 920 Undervalued Stocks Based On Cash Flows right here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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Want To Explore Some Alternatives?

• 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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