3 Stocks That Might Be Trading Up To 5.7% Below Their Estimated Intrinsic Value

In a week where major U.S. stock indexes hit record highs, the divergence between growth and value stocks was notable, with growth shares significantly outperforming their value counterparts. Amidst this mixed market performance and economic updates such as job growth rebounding in November, investors might find opportunities in stocks trading below their estimated intrinsic values. Identifying undervalued stocks requires careful analysis of market conditions and intrinsic value estimations to potentially capitalize on discrepancies between current prices and underlying worth.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Round One (TSE:4680)	¥1263.00	¥2535.49	50.2%
NBT Bancorp (NasdaqGS:NBTB)	US$50.06	US$99.93	49.9%
Proya CosmeticsLtd (SHSE:603605)	CN¥90.53	CN¥184.30	50.9%
BMC Medical (SZSE:301367)	CN¥67.72	CN¥136.81	50.5%
North Electro-OpticLtd (SHSE:600184)	CN¥10.88	CN¥22.00	50.6%
Acerinox (BME:ACX)	€9.98	€19.93	49.9%
Grupo Traxión. de (BMV:TRAXION A)	MX$19.71	MX$39.28	49.8%
Sands China (SEHK:1928)	HK$20.20	HK$40.33	49.9%
Equifax (NYSE:EFX)	US$266.82	US$530.98	49.7%
iFLYTEKLTD (SZSE:002230)	CN¥52.68	CN¥102.95	48.8%

Click here to see the full list of 884 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Simplex Holdings (TSE:4373)

Overview: Simplex Holdings, Inc. offers strategic consulting, design and development, and operation and maintenance services to financial institutions, corporations, and public sectors globally with a market cap of ¥144.05 billion.

Operations: Revenue segments for TSE:4373 include strategic consulting, design and development, and operation and maintenance services provided to financial institutions, corporations, and the public sector on a global scale.

Estimated Discount To Fair Value: 25.9%

Simplex Holdings is trading at ¥2,603, significantly below its estimated fair value of ¥3,513.3. Analysts forecast earnings growth of 21% annually over the next three years, outpacing the JP market's 7.9%. Revenue is expected to grow by 13.6% per year, surpassing market averages but below a high-growth threshold. Recent guidance projects fiscal year revenue at ¥46.8 billion and profit at ¥7.28 billion, reinforcing its undervaluation based on cash flows.

• Our expertly prepared growth report on Simplex Holdings implies its future financial outlook may be stronger than recent results.
• Delve into the full analysis health report here for a deeper understanding of Simplex Holdings.

ANYCOLOR (TSE:5032)

Overview: ANYCOLOR Inc. is an entertainment company operating in Japan and internationally, with a market cap of ¥128.08 billion.

Operations: ANYCOLOR Inc.'s revenue is derived from its operations in the entertainment sector both within Japan and internationally.

Estimated Discount To Fair Value: 5.7%

ANYCOLOR is trading at ¥2,212, slightly below its estimated fair value of ¥2,345.48. The stock offers good relative value compared to peers and the industry. Analysts expect revenue growth of 15% annually, exceeding the JP market's 4.1% average but not reaching high-growth levels. Earnings are projected to grow at 15.6% per year, surpassing the market average of 7.9%. However, recent share price volatility could be a concern for investors.

• Our earnings growth report unveils the potential for significant increases in ANYCOLOR's future results.
• Click here and access our complete balance sheet health report to understand the dynamics of ANYCOLOR.

COVER (TSE:5253)

Overview: COVER Corporation operates in the virtual platform, VTuber production, and media mix sectors with a market cap of ¥157.86 billion.

Operations: The company's revenue is derived from its virtual platform, VTuber production, and media mix businesses.

Estimated Discount To Fair Value: 32.6%

COVER is trading at ¥2,679, significantly below its estimated fair value of ¥3,976.45. The stock's valuation appears attractive given the forecasted revenue growth of 20.4% annually, outpacing the JP market's 4.1%. Earnings are expected to grow significantly at 30.34% per year, well above the market average of 7.9%. Despite recent share price volatility and high non-cash earnings, COVER presents a compelling case for undervaluation based on cash flows.

• The analysis detailed in our COVER growth report hints at robust future financial performance.
• Dive into the specifics of COVER here with our thorough financial health report.

Key Takeaways

• Click here to access our complete index of 884 Undervalued Stocks Based On Cash Flows.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
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Ready To Venture Into Other Investment Styles?

• 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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