In recent weeks, global markets have seen significant movements, with U.S. stocks rallying on growth and tax hopes following a major election outcome, while European indices faced pressure from concerns about trade policies. Amidst these fluctuations, investors are keenly evaluating opportunities that might arise from undervalued stocks potentially trading at discounts. Identifying such stocks often involves assessing their intrinsic value compared to current market prices, particularly in environments where economic policies and market sentiments shift rapidly.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| UMB Financial (NasdaqGS:UMBF) | US$122.86 | US$245.13 | 49.9% |
| Taiwan Union Technology (TPEX:6274) | NT$156.00 | NT$311.03 | 49.8% |
| KMC (Kuei Meng) International (TWSE:5306) | NT$125.00 | NT$249.85 | 50% |
| PharmaResearch (KOSDAQ:A214450) | ₩219000.00 | ₩437485.60 | 49.9% |
| Cambi (OB:CAMBI) | NOK15.10 | NOK30.14 | 49.9% |
| TBC Bank Group (LSE:TBCG) | £31.35 | £62.68 | 50% |
| Afya (NasdaqGS:AFYA) | US$16.16 | US$32.25 | 49.9% |
| Decisive Dividend (TSXV:DE) | CA$6.05 | CA$12.06 | 49.8% |
| XPEL (NasdaqCM:XPEL) | US$45.46 | US$90.91 | 50% |
| Grupo Traxión. de (BMV:TRAXION A) | MX$19.39 | MX$38.77 | 50% |
We'll examine a selection from our screener results.
Admicom Oyj (HLSE:ADMCM)
Overview: Admicom Oyj provides cloud-based ERP solutions in Finland and has a market capitalization of €238.60 million.
Operations: The company generates revenue of €34.78 million from its Software & Programming segment.
Estimated Discount To Fair Value: 36.7%
Admicom Oyj, trading at €47.85, is undervalued based on discounted cash flow analysis with a fair value estimate of €75.6, representing a 36.7% discount. Earnings are projected to grow at 19.9% annually, outpacing the Finnish market's growth rate of 14.4%. Despite large one-off items affecting results, revenue growth is expected at 8.5% per year, surpassing the Finnish market's average of 2.6%. Return on equity is forecasted to reach a high level of 22.9% in three years.
- Upon reviewing our latest growth report, Admicom Oyj's projected financial performance appears quite optimistic.
- Take a closer look at Admicom Oyj's balance sheet health here in our report.
TF Bank (OM:TFBANK)
Overview: TF Bank AB (publ) is a digital bank offering consumer banking services and e-commerce solutions via a proprietary IT platform, with a market cap of SEK 6.84 billion.
Operations: The company's revenue is derived from three main segments: Credit Cards (SEK 563.14 million), Consumer Lending (SEK 602.16 million), and Ecommerce Solutions excluding Credit Cards (SEK 380.14 million).
Estimated Discount To Fair Value: 48.1%
TF Bank is trading at SEK 318, significantly undervalued with a fair value estimate of SEK 612.26. Its earnings grew by 28.1% last year and are forecasted to increase by over 31% annually, surpassing the Swedish market's growth rate of 15.6%. Despite a high bad loans ratio of 11.4%, revenue is expected to grow at an impressive rate of over 35% per year, supported by recent restructuring efforts like establishing Rediem Capital AB.
- According our earnings growth report, there's an indication that TF Bank might be ready to expand.
- Get an in-depth perspective on TF Bank's balance sheet by reading our health report here.
NOMURA (TSE:9716)
Overview: NOMURA Co., Ltd. operates in research, planning, consulting, design, layout, production and construction, and operation and management for space creation both in Japan and internationally with a market cap of ¥86 billion.
Operations: NOMURA Co., Ltd.'s revenue segments include research, planning, consulting, design, layout, production and construction, as well as operation and management for space creation in Japan and internationally.
Estimated Discount To Fair Value: 27.3%
Nomura is trading at ¥769, approximately 27.3% below its estimated fair value of ¥1058.32, indicating potential undervaluation based on cash flows. Earnings are projected to grow significantly at 27.95% annually, outpacing the Japanese market's growth rate of 8.1%. However, the dividend yield of 3.51% lacks sufficient earnings coverage, and the forecasted return on equity remains modest at 11%. Recent events include their Q2 2025 earnings call in October 2024.
- Insights from our recent growth report point to a promising forecast for NOMURA's business outlook.
- Navigate through the intricacies of NOMURA with our comprehensive financial health report here.
Make It Happen
- Embark on your investment journey to our 900 Undervalued Stocks Based On Cash Flows selection here.
- Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
- Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.
Contemplating Other Strategies?
- 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.
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About HLSE:ADMCM
Excellent balance sheet with reasonable growth potential.
