Stock Analysis

February 2025's Top Stocks Estimated To Be Trading Below Intrinsic Value

PSE:PLUS
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As global markets navigate a period of volatility marked by fluctuating interest rates and competitive pressures in the technology sector, investors are closely watching for opportunities that might be trading below their intrinsic value. In this context, identifying stocks that are undervalued can be particularly appealing, offering potential for growth even amidst broader market challenges.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Zhongji Innolight (SZSE:300308)CN¥98.25CN¥195.8349.8%
North American Construction Group (TSX:NOA)CA$27.04CA$53.7349.7%
Decisive Dividend (TSXV:DE)CA$5.90CA$11.7950%
Northwest Bancshares (NasdaqGS:NWBI)US$13.17US$26.3149.9%
Emporiki Eisagogiki Aftokiniton Ditrohon kai Mihanon Thalassis Societe Anonyme (ATSE:MOTO)€2.72€5.4349.9%
Telefonaktiebolaget LM Ericsson (OM:ERIC B)SEK83.22SEK165.9049.8%
Spin Master (TSX:TOY)CA$30.23CA$60.1749.8%
Coastal Financial (NasdaqGS:CCB)US$86.74US$172.6849.8%
Equifax (NYSE:EFX)US$266.77US$531.7849.8%
Facephi Biometria (BME:FACE)€2.23€4.4549.8%

Click here to see the full list of 935 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.

DigiPlus Interactive (PSE:PLUS)

Overview: DigiPlus Interactive Corp. operates general amusement, recreation enterprises, hotels, and gaming facilities in the Philippines, with a market cap of ₱131.79 billion.

Operations: The company's revenue segments include the Casino Group with ₱501.05 million, Retail Group with ₱61.84 billion, Property Group with ₱82.19 million, and Network and License Group with ₱402.91 million.

Estimated Discount To Fair Value: 48.1%

DigiPlus Interactive is highly undervalued, trading at ₱31.3, significantly below its estimated fair value of ₱60.35. Its earnings grew by 327.6% last year and are forecast to grow annually by 19.69%, outpacing the Philippine market's growth rates in both revenue and profit forecasts. Recent board changes demonstrate a commitment to strong corporate governance, potentially enhancing investor confidence as the company continues its impressive financial trajectory.

PSE:PLUS Discounted Cash Flow as at Feb 2025
PSE:PLUS Discounted Cash Flow as at Feb 2025

BYD Electronic (International) (SEHK:285)

Overview: BYD Electronic (International) Company Limited is an investment holding company involved in the design, manufacture, assembly, and sale of mobile handset components and modules both within China and internationally, with a market cap of HK$98.69 billion.

Operations: The company's revenue primarily stems from the manufacture, assembly, and sale of mobile handset components and modules, generating CN¥152.36 billion.

Estimated Discount To Fair Value: 48.9%

BYD Electronic (International) is trading at HK$44.95, significantly below its estimated fair value of HK$88, highlighting its undervaluation based on cash flows. Earnings grew by 47.6% last year and are expected to grow 24.4% annually, outpacing the Hong Kong market's growth rate of 11.3%. However, forecasted revenue growth of 12.2% per year remains below the ideal benchmark but exceeds market expectations, reflecting a mixed outlook for potential investors.

SEHK:285 Discounted Cash Flow as at Feb 2025
SEHK:285 Discounted Cash Flow as at Feb 2025

Chifeng Jilong Gold MiningLtd (SHSE:600988)

Overview: Chifeng Jilong Gold Mining Co., Ltd. is a company engaged in the mining of gold and non-ferrous metals, with a market capitalization of CN¥29.48 billion.

Operations: Chifeng Jilong Gold Mining Co., Ltd. generates its revenue primarily through the extraction and sale of gold and non-ferrous metals.

Estimated Discount To Fair Value: 48.6%

Chifeng Jilong Gold Mining Ltd. is trading at CN¥19.39, significantly below its estimated fair value of CN¥37.75, suggesting undervaluation based on cash flows. Despite being removed from key indices, the company shows strong fundamentals with past earnings growth of 141.7% and a forecasted annual earnings increase of 21.86%. While revenue growth is expected to be slower than ideal at 14.9%, it still surpasses the broader Chinese market's rate of 13.3%.

SHSE:600988 Discounted Cash Flow as at Feb 2025
SHSE:600988 Discounted Cash Flow as at Feb 2025

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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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About PSE:PLUS

DigiPlus Interactive

Through its subsidiaries, manages and operates general amusement, recreation enterprises, hotels, and gaming facilities in the Philippines.

Outstanding track record with flawless balance sheet.