3 Stocks Estimated To Be Trading Below Fair Value In November 2024

November 15, 2024

As global markets react to the recent U.S. election results, investors are optimistic about potential economic growth fueled by anticipated tax cuts and deregulation, pushing major indices like the S&P 500 to record highs. Amidst this surge, identifying undervalued stocks becomes crucial for investors looking to capitalize on opportunities that may be trading below their intrinsic value in a fluctuating market environment.

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%
Cambi (OB:CAMBI)	NOK15.10	NOK30.14	49.9%
Ramssol Group Berhad (KLSE:RAMSSOL)	MYR0.695	MYR1.39	49.8%
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%
S-Pool (TSE:2471)	¥344.00	¥686.71	49.9%
BuySell TechnologiesLtd (TSE:7685)	¥3890.00	¥7757.36	49.9%

Click here to see the full list of 900 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.

Japan Investment Adviser (TSE:7172)

Overview: Japan Investment Adviser Co., Ltd. offers a range of financial solutions in Japan and has a market cap of ¥69.13 billion.

Operations: The company's revenue is primarily derived from its Finance Solution segment, which generated ¥28.10 billion.

Estimated Discount To Fair Value: 36.9%

Japan Investment Adviser appears undervalued, trading at ¥1,143 against a fair value estimate of ¥1,810.97. Despite recent volatility and shareholder dilution, its revenue is projected to grow 27.9% annually, outpacing the market's 4.2%. Earnings are expected to rise significantly at 56.22% per year over the next three years. However, debt coverage by operating cash flow remains weak and recent guidance revisions indicate exchange losses impacting net income forecasts due to yen appreciation.

TSE:7172 Discounted Cash Flow as at Nov 2024

BuySell TechnologiesLtd (TSE:7685)

Overview: BuySell Technologies Co., Ltd. operates in the kimono and branded goods reuse business in Japan with a market capitalization of approximately ¥55.25 billion.

Operations: The company generates revenue of ¥51.73 billion from its reuse business for kimonos and branded products in Japan.

Estimated Discount To Fair Value: 49.9%

BuySell Technologies Ltd. is trading at ¥3,890, significantly below its estimated fair value of ¥7,757.36. Despite high share price volatility and debt not fully covered by operating cash flow, the company shows promising growth potential with earnings expected to increase 28.9% annually over the next three years—outpacing Japan's market average of 8%. Recent amendments to double authorized shares and a ¥10 billion syndicated loan for acquisitions highlight strategic expansion efforts.

TSE:7685 Discounted Cash Flow as at Nov 2024

Gakken Holdings (TSE:9470)

Overview: Gakken Holdings Co., Ltd. operates in the educational and healthcare and nursing sectors both in Japan and internationally, with a market cap of ¥43.01 billion.

Operations: The company's revenue is derived from the Educational Domain, which accounts for ¥92.15 billion, and the Healthcare and Nursing Domain, contributing ¥87.60 billion.

Estimated Discount To Fair Value: 24.4%

Gakken Holdings is trading at ¥1,019, significantly below its estimated fair value of ¥1,348.42. The company has initiated a share buyback program worth ¥1 billion to enhance shareholder returns and announced stable dividends of JPY 12.50 per share for the past year with plans to increase them slightly next year. Despite a recent decline in profit margins, earnings are forecasted to grow significantly by 33.6% annually over the next three years, surpassing Japan's market average growth rate.

TSE:9470 Discounted Cash Flow as at Nov 2024

Summing It All Up

Unlock more gems! Our Undervalued Stocks Based On Cash Flows screener has unearthed 897 more companies for you to explore.Click here to unveil our expertly curated list of 900 Undervalued Stocks Based On Cash Flows.
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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.

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