Stock Analysis

3 Stocks Estimated To Be Up To 7.3% Below Intrinsic Value

SZSE:002600
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In a week marked by volatile economic signals and cautious market movements, global indices have shown mixed results. With major U.S. indexes like the Nasdaq Composite and S&P 500 experiencing fluctuations amid busy earnings reports and economic data releases, investors are keenly observing value opportunities in an uncertain environment. Identifying undervalued stocks can be crucial for investors looking to capitalize on potential discrepancies between market price and intrinsic value, especially when broader market conditions are unpredictable.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Tibet Rhodiola Pharmaceutical Holding (SHSE:600211)CN¥39.04CN¥76.8949.2%
PharmaResearch (KOSDAQ:A214450)₩224500.00₩450874.0450.2%
JYP Entertainment (KOSDAQ:A035900)₩56700.00₩107368.8647.2%
Ingenia Communities Group (ASX:INA)A$4.70A$9.4350.2%
BayCurrent Consulting (TSE:6532)¥5023.00¥9762.8848.5%
EVERTEC (NYSE:EVTC)US$33.02US$65.7949.8%
Laboratorio Reig Jofre (BME:RJF)€2.90€5.7749.7%
Open Lending (NasdaqGM:LPRO)US$6.14US$12.2149.7%
Hunan TV & Broadcast Intermediary (SZSE:000917)CN¥9.34CN¥20.0453.4%
Energy One (ASX:EOL)A$5.56A$11.0649.7%

Click here to see the full list of 960 stocks from our Undervalued Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Lingyi iTech (Guangdong) (SZSE:002600)

Overview: Lingyi iTech (Guangdong) Company offers smart manufacturing services and solutions, with a market cap of CN¥59.31 billion.

Operations: Lingyi iTech's revenue is generated from providing smart manufacturing services and solutions.

Estimated Discount To Fair Value: 7.3%

Lingyi iTech (Guangdong) trades at CN¥9.11, slightly below its fair value estimate of CN¥9.83, suggesting it could be undervalued based on cash flows despite recent volatility. The company reported a revenue increase to CNY 31.48 billion for the nine months ended September 2024, although net income declined to CNY 1.41 billion from the previous year’s CNY 1.87 billion, reflecting margin pressures amidst strong sales growth projections and ongoing share buyback activities.

SZSE:002600 Discounted Cash Flow as at Nov 2024
SZSE:002600 Discounted Cash Flow as at Nov 2024

Zhongji Innolight (SZSE:300308)

Overview: Zhongji Innolight Co., Ltd. is involved in the research, development, production, and sale of optical communication transceiver modules and optical devices in China, with a market cap of CN¥158.14 billion.

Operations: The company generates revenue primarily from the sale of optical communication transceiver modules and optical devices within China.

Estimated Discount To Fair Value: 28.0%

Zhongji Innolight is trading at CN¥148.29, below its estimated fair value of CN¥205.83, reflecting potential undervaluation based on cash flows. The company reported significant revenue growth to CNY 17.31 billion for the first nine months of 2024, with net income rising to CNY 3.75 billion from CNY 1.30 billion a year ago, despite recent share price volatility and high levels of non-cash earnings impacting perceived quality.

SZSE:300308 Discounted Cash Flow as at Nov 2024
SZSE:300308 Discounted Cash Flow as at Nov 2024

Asia Vital Components (TWSE:3017)

Overview: Asia Vital Components Co., Ltd. offers thermal solutions globally and has a market cap of NT$250.68 billion.

Operations: The company generates revenue from its Overseas Operating Department, which contributes NT$66.65 billion, and its Integrated Management Division, which adds NT$48.87 billion.

Estimated Discount To Fair Value: 16.3%

Asia Vital Components is trading at NT$656, below its estimated fair value of NT$783.35, suggesting undervaluation based on cash flows. The company reported strong earnings growth with Q2 2024 net income rising to TWD 1,947.26 million from TWD 1,201.43 million a year ago and a significant revenue increase. Despite recent share price volatility, the company's earnings and revenue are forecast to grow significantly above market rates over the next few years.

TWSE:3017 Discounted Cash Flow as at Nov 2024
TWSE:3017 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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