Stock Analysis

3 Elite Value Stocks Priced Below Estimated Intrinsic Value

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As global markets navigate a mixed start to the year, with U.S. stocks closing out another strong year despite recent volatility, investors are increasingly focused on identifying value opportunities amid fluctuating economic indicators. In this context, undervalued stocks—those trading below their estimated intrinsic value—can offer potential for growth as they may be overlooked by the broader market sentiment and economic forecasts.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Livero (TSE:9245)¥1565.00¥3120.6549.9%
Camden National (NasdaqGS:CAC)US$42.01US$83.8449.9%
Brickability Group (AIM:BRCK)£0.626£1.2549.8%
Decisive Dividend (TSXV:DE)CA$6.00CA$11.9449.8%
Zhaojin Mining Industry (SEHK:1818)HK$11.72HK$23.4450%
Brunel International (ENXTAM:BRNL)€9.84€19.6449.9%
Emporiki Eisagogiki Aftokiniton Ditrohon kai Mihanon Thalassis Societe Anonyme (ATSE:MOTO)€2.73€5.4449.8%
Constellium (NYSE:CSTM)US$10.47US$20.8149.7%
Neosperience (BIT:NSP)€0.572€1.1449.8%
Vogo (ENXTPA:ALVGO)€2.92€5.8149.8%

Click here to see the full list of 888 stocks from our Undervalued Stocks Based On Cash Flows screener.

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

Ditto (Thailand) (SET:DITTO)

Overview: Ditto (Thailand) Public Company Limited provides data and document management solutions in Thailand, with a market cap of THB9.58 billion.

Operations: The company's revenue segments include Technology Engineering Services at THB1.07 billion, Data and Document Management Solution at THB692.38 million, and Photocopiers, Printer and Technology Products at THB475.38 million.

Estimated Discount To Fair Value: 31.8%

Ditto (Thailand) is trading at THB13.5, significantly below its estimated fair value of THB19.79, highlighting its potential undervaluation based on cash flows. The company reported strong financial performance with a notable increase in net income to THB138.17 million for Q3 2024 from THB96.58 million the previous year. While earnings and revenue are forecasted to grow rapidly, shareholders experienced dilution last year, and the stock has shown high volatility recently.

SET:DITTO Discounted Cash Flow as at Jan 2025

JAC Recruitment (TSE:2124)

Overview: JAC Recruitment Co., Ltd. operates as a recruitment consultancy business in Japan with a market cap of ¥109.27 billion.

Operations: The company's revenue is primarily derived from its Domestic Recruitment Business, which accounts for ¥33.46 billion, followed by its Overseas Business at ¥3.74 billion and the Domestic Job Offer Advertising Business at ¥390 million.

Estimated Discount To Fair Value: 35.7%

JAC Recruitment is trading at ¥689, well below its estimated fair value of ¥1,072.37, indicating potential undervaluation based on cash flows. The company has demonstrated robust earnings growth of 15.2% annually over the last five years and is expected to outpace the JP market with a forecasted earnings growth of 19.2% per year. Additionally, it offers a high dividend yield of 3.77%, enhancing its appeal to income-focused investors.

TSE:2124 Discounted Cash Flow as at Jan 2025

Nihon M&A Center Holdings (TSE:2127)

Overview: Nihon M&A Center Holdings Inc. offers mergers and acquisitions-related services both in Japan and internationally, with a market capitalization of ¥209.69 billion.

Operations: The company generates revenue primarily from its M&A Consulting Business, which amounts to ¥43.56 billion.

Estimated Discount To Fair Value: 18.3%

Nihon M&A Center Holdings is trading at ¥656.6, approximately 18.3% below its fair value estimate of ¥803.72, reflecting potential undervaluation based on cash flows. Forecasted revenue and earnings growth rates of 8.4% and 8.3%, respectively, are expected to outpace the JP market averages. The company's recent establishment of AtoG Capital aims to boost cross-border M&A in ASEAN, potentially enhancing future cash flow prospects while maintaining a reliable dividend yield of 3.5%.

TSE:2127 Discounted Cash Flow as at Jan 2025

Where To Now?

  • Take a closer look at our Undervalued Stocks Based On Cash Flows list of 888 companies by clicking here.
  • 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.
  • Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Interested In Other Possibilities?

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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