Stock Analysis

3 Stocks Estimated To Be Undervalued By Up To 44.8%

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As global markets continue to navigate the evolving landscape of trade policies and AI-driven optimism, major indices like the S&P 500 have reached new heights, reflecting investor confidence amid political and economic shifts. In this environment, identifying undervalued stocks becomes crucial for investors seeking opportunities that may not yet be fully recognized by the market.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Sichuan Injet Electric (SZSE:300820)CN¥50.58CN¥100.7749.8%
GlobalData (AIM:DATA)£1.78£3.5649.9%
Fudo Tetra (TSE:1813)¥2192.00¥4357.8349.7%
J Trust (TSE:8508)¥520.00¥1039.9250%
Bufab (OM:BUFAB)SEK464.20SEK926.2849.9%
Greenworks (Jiangsu) (SZSE:301260)CN¥13.83CN¥27.6450%
IDP Education (ASX:IEL)A$13.17A$26.3149.9%
Allied Blenders and Distillers (NSEI:ABDL)₹394.40₹787.1249.9%
Condor Energies (TSX:CDR)CA$1.83CA$3.6449.7%
Vista Group International (NZSE:VGL)NZ$3.10NZ$6.1649.7%

Click here to see the full list of 904 stocks from our Undervalued Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

UPM-Kymmene Oyj (HLSE:UPM)

Overview: UPM-Kymmene Oyj, with a market cap of €15.07 billion, operates in the forest-based bioindustry across Europe, North America, Asia, and internationally through its subsidiaries.

Operations: The company's revenue segments include UPM Energy (€658 million), UPM Fibres (€3.51 billion), UPM Plywood (€412 million), UPM Raflatac (€1.55 billion), UPM Specialty Papers (€1.47 billion), and UPM Communication Papers (€3.06 billion).

Estimated Discount To Fair Value: 22.3%

UPM-Kymmene Oyj is trading at €28.32, significantly below its estimated fair value of €36.43, suggesting potential undervaluation based on cash flows. Despite a forecasted low return on equity of 13.7% in three years, UPM's earnings are expected to grow significantly at 22.8% annually, outpacing the Finnish market's growth rate. Recent strategic alliances in agroforestry could enhance long-term productivity and environmental impact, potentially adding economic opportunities for rural communities.

HLSE:UPM Discounted Cash Flow as at Jan 2025

China Resources Mixc Lifestyle Services (SEHK:1209)

Overview: China Resources Mixc Lifestyle Services Limited is an investment holding company offering property management and commercial operational services in the People’s Republic of China, with a market cap of HK$67.11 billion.

Operations: The company's revenue is derived from its property management business, which generated CN¥10.22 billion, and its commercial management business, contributing CN¥5.71 billion.

Estimated Discount To Fair Value: 44.8%

China Resources Mixc Lifestyle Services is currently trading at HK$29.4, significantly below its estimated fair value of HK$53.24, highlighting its undervaluation based on cash flows. Earnings are projected to grow annually by 13.6%, outpacing the Hong Kong market's growth rate of 11.3%. A new agreement with China Resources Beer for property management and commercial operation services could bolster revenue streams from 2025 to 2027, supporting future profitability growth prospects.

SEHK:1209 Discounted Cash Flow as at Jan 2025

Sansan (TSE:4443)

Overview: Sansan, Inc. is a company that plans, develops, and sells cloud-based solutions in Japan with a market capitalization of ¥313.93 billion.

Operations: The company's revenue segments include the Sansan/Bill One Business, generating ¥33.67 billion, and the Eight Business, contributing ¥4.17 billion.

Estimated Discount To Fair Value: 27.2%

Sansan is trading at ¥2489, significantly below its estimated fair value of ¥3419.87, reflecting undervaluation based on cash flows. Earnings are forecast to grow substantially at 38.6% annually, surpassing the JP market's growth rate of 8.2%. The company recently became profitable and anticipates high return on equity over the next three years. Despite recent share price volatility, these factors suggest potential for improved financial performance amidst ongoing strategic evaluations by management.

TSE:4443 Discounted Cash Flow as at Jan 2025

Summing It All Up

  • Navigate through the entire inventory of 904 Undervalued Stocks Based On Cash Flows here.
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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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