Stock Analysis

Three Value Stocks Estimated To Be Trading Below Intrinsic Worth In November 2024

Published November 12, 2024

As global markets react to the recent U.S. election results, with major indices like the S&P 500 reaching record highs on hopes of economic growth and tax reforms, investors are closely watching for opportunities amidst these shifts. In this context, identifying stocks that are potentially undervalued becomes crucial, as they offer a chance to capitalize on market optimism while ensuring investments align with intrinsic worth and economic fundamentals.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
goeasy (TSX:GSY)	CA$177.94	CA$354.07	49.7%
Taiwan Union Technology (TPEX:6274)	NT$155.50	NT$310.76	50%
KMC (Kuei Meng) International (TWSE:5306)	NT$125.50	NT$250.05	49.8%
XPEL (NasdaqCM:XPEL)	US$45.67	US$91.12	49.9%
North Electro-OpticLtd (SHSE:600184)	CN¥11.35	CN¥22.56	49.7%
GRCS (TSE:9250)	¥1511.00	¥3000.50	49.6%
Redcentric (AIM:RCN)	£1.1625	£2.32	50%
BuySell TechnologiesLtd (TSE:7685)	¥3920.00	¥7808.63	49.8%
QuinStreet (NasdaqGS:QNST)	US$23.42	US$46.52	49.7%
Delixi New Energy Technology (SHSE:603032)	CN¥17.95	CN¥35.80	49.9%

Click here to see the full list of 896 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

NHPC (NSEI:NHPC)

Overview: NHPC Limited, along with its subsidiaries, is involved in the generation, sale, and trading of electricity through hydro, wind, and solar power stations in India with a market cap of ₹814.45 billion.

Operations: NHPC Limited's revenue segments include the generation, sale, and trading of electricity through hydro, wind, and solar power stations in India.

Estimated Discount To Fair Value: 44.9%

NHPC is trading at a significant discount to its estimated fair value, with the current price of ₹80.79 well below the projected fair value of ₹146.5. Despite challenges like recent executive changes and operational disruptions due to landslides, NHPC's revenue and earnings are expected to grow significantly faster than the Indian market. However, its debt coverage by operating cash flow is weak, and dividends are not well covered by free cash flows, indicating potential financial constraints.

NSEI:NHPC Discounted Cash Flow as at Nov 2024

Guangdong Baolihua New Energy Stock (SZSE:000690)

Overview: Guangdong Baolihua New Energy Stock Co., Ltd. operates in the energy sector with a focus on new energy solutions and has a market cap of CN¥10.31 billion.

Operations: Guangdong Baolihua New Energy Stock Co., Ltd. generates its revenue primarily from its operations in the energy sector, focusing on new energy solutions.

Estimated Discount To Fair Value: 44.2%

Guangdong Baolihua New Energy Stock is trading at a significant discount, with its current price of CN¥4.79 well below the estimated fair value of CN¥8.58. Despite recent revenue declines, earnings grew by 31% last year and are projected to grow annually by 24.45%. However, its dividend yield of 6.26% is not supported by free cash flows, and future return on equity is expected to be low at 10.2%.

SZSE:000690 Discounted Cash Flow as at Nov 2024

Hirata (TSE:6258)

Overview: Hirata Corporation manufactures and sells manufacturing line systems, industrial robots, and logistic equipment in Japan and internationally, with a market cap of ¥56.09 billion.

Operations: The company's revenue segments include Automobile Related at ¥39.29 billion, Semiconductor Related at ¥28.13 billion, and Other Automatic Labor-Saving Devices at ¥16.00 billion.

Estimated Discount To Fair Value: 36.8%

Hirata is trading at ¥5,470, notably below its estimated fair value of ¥8,650.74. Despite a volatile share price recently and a dividend yield of 2.19% not covered by free cash flows, earnings are expected to grow significantly at 20.62% annually over the next three years, outpacing the JP market's growth rate. The company has announced a buyback program to enhance capital efficiency and shareholder returns by repurchasing up to 250,000 shares for ¥1 billion.

TSE:6258 Discounted Cash Flow as at Nov 2024

Seize The Opportunity

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Interested In Other Possibilities?

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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.

Valuation is complex, but we're here to simplify it.

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