Stock Analysis

Asian Value Stocks Trading Below Estimated Worth In April 2025

TWSE:2377
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As global markets navigate a landscape marked by trade uncertainties and mixed performances across major indices, Asia's economic scene remains a focal point for investors seeking opportunities in undervalued stocks. In the context of ongoing tariff impacts and monetary policy shifts, identifying stocks trading below their estimated worth can be particularly appealing for those looking to capitalize on potential growth when market conditions stabilize.

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Top 10 Undervalued Stocks Based On Cash Flows In Asia

NameCurrent PriceFair Value (Est)Discount (Est)
Pegasus (TSE:6262)¥462.00¥919.8049.8%
Insource (TSE:6200)¥847.00¥1673.1949.4%
Micro-Star International (TWSE:2377)NT$135.00NT$265.5949.2%
Members (TSE:2130)¥1133.00¥2245.9849.6%
AeroEdge (TSE:7409)¥1884.00¥3722.3049.4%
Rakus (TSE:3923)¥2189.00¥4351.7949.7%
BIKE O (TSE:3377)¥388.00¥769.7149.6%
BalnibarbiLtd (TSE:3418)¥1120.00¥2234.0849.9%
Aozora Bank (TSE:8304)¥1861.00¥3690.6349.6%
CS BEARING (KOSDAQ:A297090)₩5340.00₩10502.6449.2%

Click here to see the full list of 271 stocks from our Undervalued Asian Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Rakus (TSE:3923)

Overview: Rakus Co., Ltd., along with its subsidiaries, offers cloud services in Japan and has a market cap of ¥396.59 billion.

Operations: Rakus Co., Ltd. and its subsidiaries generate revenue through the provision of cloud services in Japan.

Estimated Discount To Fair Value: 49.7%

Rakus Co., Ltd. appears significantly undervalued with its current trading price of ¥2,189, which is 49.7% below the estimated fair value of ¥4,351.79. Recent sales figures show steady growth with March 2025 sales reaching ¥4.57 billion from February's ¥4.43 billion. Despite revenue growth forecasts being slower than 20% annually, earnings are expected to grow at a robust rate of 26.7% per year, outpacing the broader Japanese market's anticipated growth rate.

TSE:3923 Discounted Cash Flow as at Apr 2025
TSE:3923 Discounted Cash Flow as at Apr 2025

Gunma Bank (TSE:8334)

Overview: The Gunma Bank, Ltd. offers a range of banking and financial products and services in Japan with a market cap of ¥441.28 billion.

Operations: The company's revenue segments include ¥30.56 billion from leasing and ¥175.93 billion from banking services.

Estimated Discount To Fair Value: 26.6%

Gunma Bank is trading at ¥1,154, significantly below its estimated fair value of ¥1,572.93. Despite recent share price volatility, the bank's earnings and revenue are forecast to grow faster than the Japanese market at 8.8% and 26% per year respectively. The company recently increased its dividend guidance from ¥20 to ¥25 per share for fiscal year-end March 2025, reflecting a shift in shareholder return policy amidst a low allowance for bad loans (38%).

TSE:8334 Discounted Cash Flow as at Apr 2025
TSE:8334 Discounted Cash Flow as at Apr 2025

Micro-Star International (TWSE:2377)

Overview: Micro-Star International Co., Ltd. is a global manufacturer and seller of motherboards, interface cards, notebook computers, and other electronic products with a market cap of NT$114.06 billion.

Operations: The company's revenue primarily comes from its Computer and Peripherals segment, totaling NT$197.83 billion.

Estimated Discount To Fair Value: 49.2%

Micro-Star International is trading at NT$135, significantly below its estimated fair value of NT$265.59, offering potential for appreciation. Despite a decrease in net income to TWD 6.79 billion for 2024, earnings are expected to grow at 30.3% annually over the next three years, outpacing the Taiwanese market's growth rate of 14.8%. However, dividends remain unsustainable as they are not well covered by free cash flows. Recent AI platform innovations may bolster future performance.

TWSE:2377 Discounted Cash Flow as at Apr 2025
TWSE:2377 Discounted Cash Flow as at Apr 2025

Key Takeaways

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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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About TWSE:2377

Micro-Star International

Manufactures and sells motherboards, interface cards, notebook computers, and other electronic products in Asia, Europe, the United States, and internationally.

Flawless balance sheet and undervalued.

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