3 Stocks That May Be Priced Below Their Estimated Value In February 2025

As global markets grapple with uncertainty stemming from tariff announcements and mixed economic indicators, investors are closely monitoring the implications for growth and inflation. The recent volatility in major indices, alongside robust earnings reports from many companies, highlights the importance of identifying stocks that may be undervalued amidst broader market fluctuations. In such an environment, finding stocks priced below their estimated value can offer potential opportunities for investors seeking to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
DIP (TSE:2379)	¥2246.00	¥4524.66	50.4%
Atour Lifestyle Holdings (NasdaqGS:ATAT)	US$29.57	US$58.94	49.8%
Biotage (OM:BIOT)	SEK138.70	SEK273.61	49.3%
People & Technology (KOSDAQ:A137400)	₩41600.00	₩81814.39	49.2%
Solum (KOSE:A248070)	₩17680.00	₩34856.64	49.3%
Guangdong Fenghua Advanced Technology (Holding) (SZSE:000636)	CN¥15.25	CN¥30.01	49.2%
Canatu Oyj (HLSE:CANATU)	€12.50	€24.79	49.6%
RENK Group (DB:R3NK)	€24.94	€49.37	49.5%
Marcus & Millichap (NYSE:MMI)	US$37.27	US$73.76	49.5%
Kyndryl Holdings (NYSE:KD)	US$41.54	US$82.14	49.4%

Click here to see the full list of 906 stocks from our Undervalued Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

AGC (TSE:5201)

Overview: AGC Inc. is a global manufacturer and seller of glass, electronics, chemicals, automotive products, and ceramics with a market cap of ¥922.14 billion.

Operations: The company's revenue is primarily derived from its Chemicals segment at ¥593.62 billion, followed by Automotive at ¥498.79 billion, Architectural Glass at ¥437.99 billion, Electronics at ¥364.55 billion, and Life Science at ¥141.22 billion.

Estimated Discount To Fair Value: 38.2%

AGC is trading at 38.2% below its estimated fair value, with a discounted cash flow analysis revealing it to be highly undervalued by over 20%. Despite a dividend yield of 4.8%, concerns arise as it's not well covered by earnings or free cash flows. Revenue growth is forecasted at 4.9% annually, outpacing the JP market's average, while profitability is expected within three years, supported by recent guidance projecting significant sales and profit figures for 2025.

• Upon reviewing our latest growth report, AGC's projected financial performance appears quite optimistic.
• Click here to discover the nuances of AGC with our detailed financial health report.

PSI Software (XTRA:PSAN)

Overview: PSI Software SE develops and integrates software solutions to optimize energy and material flows for utilities and industries globally, with a market cap of €424.37 million.

Operations: The company's revenue is derived from Energy Management (€132.55 million) and Production Management (€134.45 million) segments.

Estimated Discount To Fair Value: 38.4%

PSI Software is trading at €27.4, significantly below its estimated fair value of €44.48, making it undervalued by over 20% based on discounted cash flow analysis. The company anticipates becoming profitable within three years, with expected earnings growth of 65.98% annually and revenue growth surpassing the German market average at 8.3%. Recent strategic partnerships and restructuring efforts enhance its competitive edge in energy management solutions, supporting future profitability prospects.

• In light of our recent growth report, it seems possible that PSI Software's financial performance will exceed current levels.
• Delve into the full analysis health report here for a deeper understanding of PSI Software.

Ströer SE KGaA (XTRA:SAX)

Overview: Ströer SE & Co. KGaA offers out-of-home media and online advertising solutions in Germany and internationally, with a market cap of €3.23 billion.

Operations: The company's revenue segments include Daas & E-Commerce (€352.26 million), Out-Of-Home Media (€941.99 million), and Digital & Dialog Media (€867.49 million).

Estimated Discount To Fair Value: 34%

Ströer SE KGaA is trading at €57.8, below its estimated fair value of €87.55, indicating it is undervalued by more than 20% based on discounted cash flow analysis. Despite carrying a high level of debt and a dividend not well covered by earnings, the company forecasts significant earnings growth of 27.2% annually, outpacing the German market average. Recent talks with private equity investors about selling its advertising business could impact future valuations positively if concluded successfully.

• According our earnings growth report, there's an indication that Ströer SE KGaA might be ready to expand.
• Navigate through the intricacies of Ströer SE KGaA with our comprehensive financial health report here.

Next Steps

• Delve into our full catalog of 906 Undervalued Stocks Based On Cash Flows here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Seeking Other Investments?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com