3 Stocks That May Be Priced Below Their Estimated Value In October 2024

As global markets navigate the effects of rising Treasury yields and a cautious economic outlook, investors are keenly observing shifts in major indices like the S&P 500 and Nasdaq Composite. With growth stocks showing resilience amid these conditions, identifying undervalued stocks becomes crucial for those looking to capitalize on potential market inefficiencies. In this environment, a good stock is often characterized by strong fundamentals that may not yet be fully recognized by the market, offering opportunities for value-focused investors.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Trimegah Bangun Persada (IDX:NCKL)	IDR890.00	IDR1777.58	49.9%
Provident Financial Services (NYSE:PFS)	US$19.03	US$37.92	49.8%
Western Alliance Bancorporation (NYSE:WAL)	US$84.27	US$168.24	49.9%
California Resources (NYSE:CRC)	US$52.32	US$104.35	49.9%
Geovis TechnologyLtd (SHSE:688568)	CN¥40.77	CN¥81.16	49.8%
Beyout Investment Group Holding Company - K.S.C. (Holding) (KWSE:BEYOUT)	KWD0.395	KWD0.79	49.9%
Acerinox (BME:ACX)	€8.52	€16.98	49.8%
Enento Group Oyj (HLSE:ENENTO)	€18.40	€36.57	49.7%
ChromaDex (NasdaqCM:CDXC)	US$3.58	US$7.15	49.9%
Fine Foods & Pharmaceuticals N.T.M (BIT:FF)	€8.36	€16.70	49.9%

Click here to see the full list of 959 stocks from our Undervalued Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Türk Telekomünikasyon Anonim Sirketi (IBSE:TTKOM)

Overview: Türk Telekomünikasyon Anonim Sirketi, along with its subsidiaries, offers integrated telecommunication services in Turkey and has a market capitalization of TRY166.67 billion.

Operations: The company's revenue is derived from segments including Mobile at TRY42.38 billion and Fixed-Line at TRY64.72 billion.

Estimated Discount To Fair Value: 35.6%

Türk Telekomünikasyon Anonim Sirketi is trading at TRY47.62, significantly below its estimated fair value of TRY73.91, highlighting potential undervaluation based on cash flows. Despite a slower forecasted earnings growth rate compared to the Turkish market, the company's revenue is expected to grow faster than 20% annually over the next three years. Recent earnings reports show a turnaround from a net loss to a net income of TRY1.42 billion for Q2 2024, indicating improved financial health.

• The analysis detailed in our Türk Telekomünikasyon Anonim Sirketi growth report hints at robust future financial performance.
• Unlock comprehensive insights into our analysis of Türk Telekomünikasyon Anonim Sirketi stock in this financial health report.

Geovis TechnologyLtd (SHSE:688568)

Overview: Geovis Technology Co., Ltd focuses on the research, development, and industrialization of digital earth products for various sectors in China, with a market cap of CN¥22.15 billion.

Operations: Revenue Segments (in millions of CN¥): The company generates revenue through its digital earth products and services, catering to government, enterprises, and specialized public sectors within China.

Estimated Discount To Fair Value: 49.8%

Geovis Technology Ltd. is trading at CN¥40.77, significantly below its estimated fair value of CN¥81.16, suggesting it may be undervalued based on cash flows. The company has demonstrated strong revenue growth, reporting CN¥2 billion for the nine months ended September 2024 compared to CN¥1.4 billion a year ago. Earnings are forecast to grow significantly faster than the Chinese market average, though recent volatility in share price could pose risks for investors seeking stability.

• Insights from our recent growth report point to a promising forecast for Geovis TechnologyLtd's business outlook.
• Get an in-depth perspective on Geovis TechnologyLtd's balance sheet by reading our health report here.

Kadokawa (TSE:9468)

Overview: Kadokawa Corporation operates as an entertainment company in Japan with a market cap of ¥453.01 billion.

Operations: The company generates revenue primarily from its Publication segment at ¥143.28 billion, followed by Animation/Film at ¥46.36 billion, Game at ¥28.63 billion, Web Service at ¥20.44 billion, and Education/Edtech at ¥13.83 billion.

Estimated Discount To Fair Value: 38.6%

Kadokawa, trading at ¥3369, is priced 38.6% below its estimated fair value of ¥5490.38, highlighting a potential undervaluation based on cash flows. The company has shown earnings growth of 23.8% over the past year and is expected to maintain an annual growth rate of 21.57%, surpassing the Japanese market average of 8.7%. However, its forecasted return on equity remains modest at 10.7% in three years' time.

• The growth report we've compiled suggests that Kadokawa's future prospects could be on the up.
• Click to explore a detailed breakdown of our findings in Kadokawa's balance sheet health report.

Turning Ideas Into Actions

• Navigate through the entire inventory of 959 Undervalued Stocks Based On Cash Flows here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Curious About Other Options?

• 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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