3 Stocks That Might Be Trading Below Estimated Fair Value

As global markets grapple with inflation concerns and political uncertainties, U.S. equities have seen a decline, with small-cap stocks underperforming and value stocks showing relative resilience. Amid this choppy market environment, identifying undervalued stocks can offer potential opportunities for investors looking to capitalize on discrepancies between current market prices and estimated fair values.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Turkcell Iletisim Hizmetleri (IBSE:TCELL)	TRY95.20	TRY190.03	49.9%
Türkiye Sise Ve Cam Fabrikalari (IBSE:SISE)	TRY39.18	TRY78.34	50%
Bank BTPN Syariah (IDX:BTPS)	IDR860.00	IDR1715.86	49.9%
German American Bancorp (NasdaqGS:GABC)	US$39.26	US$78.06	49.7%
GemPharmatech (SHSE:688046)	CN¥13.06	CN¥25.98	49.7%
Shinko Electric Industries (TSE:6967)	¥5865.00	¥11696.09	49.9%
AK Medical Holdings (SEHK:1789)	HK$4.28	HK$8.52	49.8%
TSE (KOSDAQ:A131290)	₩43400.00	₩86241.99	49.7%
Jiangsu Chuanzhiboke Education Technology (SZSE:003032)	CN¥9.20	CN¥18.40	50%
Coeur Mining (NYSE:CDE)	US$6.35	US$12.63	49.7%

Click here to see the full list of 874 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Zhuzhou Times New Material Technology (SHSE:600458)

Overview: Zhuzhou Times New Material Technology Co., Ltd. operates in the field of advanced materials and components, with a market capitalization of approximately CN¥10.42 billion.

Operations: Zhuzhou Times New Material Technology Co., Ltd. generates its revenue from various segments, though specific segment details are not provided in the available information.

Estimated Discount To Fair Value: 13.2%

Zhuzhou Times New Material Technology is trading at CN¥12.64, below its estimated fair value of CN¥14.56, suggesting it may be undervalued based on cash flows. Despite a low return on equity forecast of 12.5% in three years, earnings are expected to grow significantly at 33.8% annually, outpacing the Chinese market's growth rate of 24.8%. Recent earnings show modest revenue and net income increases year-over-year, indicating potential for future growth.

• The analysis detailed in our Zhuzhou Times New Material Technology growth report hints at robust future financial performance.
• Take a closer look at Zhuzhou Times New Material Technology's balance sheet health here in our report.

GemPharmatech (SHSE:688046)

Overview: GemPharmatech Co., Ltd. is a contract research organization that offers genetically engineered mouse models and preclinical research services globally, with a market cap of CN¥5.33 billion.

Operations: GemPharmatech Co., Ltd.'s revenue primarily comes from providing genetically engineered mouse models and preclinical research services to the global scientific community.

Estimated Discount To Fair Value: 49.7%

GemPharmatech, trading at CN¥13.06, is significantly undervalued compared to its estimated fair value of CN¥25.98. The company forecasts robust revenue growth of 22.1% annually and earnings growth of 27.4%, both surpassing market averages. Despite a low future return on equity forecasted at 9.8%, recent strategic initiatives like share buybacks and innovative product developments through NeoMab enhance its potential for long-term value creation amidst current financial challenges.

• According our earnings growth report, there's an indication that GemPharmatech might be ready to expand.
• Click here to discover the nuances of GemPharmatech with our detailed financial health report.

Peric Special Gases (SHSE:688146)

Overview: Peric Special Gases Co., Ltd. focuses on the R&D, production, and sale of electronic special gases and trifluoromethanesulfonic acid series products in China, with a market cap of CN¥14.85 billion.

Operations: The company's revenue segments include electronic special gases and trifluoromethanesulfonic acid series products.

Estimated Discount To Fair Value: 21.6%

Peric Special Gases, trading at CN¥28.05, is undervalued with an estimated fair value of CN¥35.79. The company anticipates revenue growth of 22.1% annually, outpacing the market average of 13.3%. Although earnings are expected to grow at 24.13% per year, slightly below the market rate, the stock's valuation remains attractive despite recent declines in net income and limited dividend coverage by free cash flows.

• The growth report we've compiled suggests that Peric Special Gases' future prospects could be on the up.
• Dive into the specifics of Peric Special Gases here with our thorough financial health report.

Summing It All Up

• Click here to access our complete index of 874 Undervalued Stocks Based On Cash Flows.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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Ready For A Different Approach?

• 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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