3 Stocks Estimated To Be Undervalued By As Much As 45.8%

As global markets experience broad-based gains with U.S. indexes approaching record highs, investors are increasingly focused on identifying undervalued opportunities amid geopolitical uncertainties and economic fluctuations. In this environment, a good stock may be one that is not only fundamentally strong but also overlooked by the broader market, presenting potential value as it aligns with emerging trends and resilient sectors.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Shenzhen Lifotronic Technology (SHSE:688389)	CN¥15.77	CN¥30.89	49%
SeSa (BIT:SES)	€75.10	€149.67	49.8%
HD Korea Shipbuilding & Offshore Engineering (KOSE:A009540)	₩214500.00	₩402771.51	46.7%
PLAIDInc (TSE:4165)	¥1591.00	¥3193.29	50.2%
Winking Studios (Catalist:WKS)	SGD0.27	SGD0.54	49.7%
EnomotoLtd (TSE:6928)	¥1484.00	¥2932.52	49.4%
Intermedical Care and Lab Hospital (SET:IMH)	THB4.96	THB9.87	49.7%
SK Biopharmaceuticals (KOSE:A326030)	₩100900.00	₩190022.03	46.9%
Cavotec (OM:CCC)	SEK17.55	SEK35.07	50%
Snap (NYSE:SNAP)	US$11.42	US$22.72	49.7%

Click here to see the full list of 914 stocks from our Undervalued Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

EO Technics (KOSDAQ:A039030)

Overview: EO Technics Co., Ltd. manufactures and supplies laser processing equipment globally, with a market cap of approximately ₩1.52 trillion.

Operations: Revenue Segments (in millions of ₩): EO Technics generates revenue from its global operations in laser processing equipment.

Estimated Discount To Fair Value: 28.8%

EO Technics is trading over 28% below its estimated fair value of ₩189,415.62, with analysts projecting a 34.2% price increase. Its revenue and earnings are expected to grow at rates exceeding both 20% annually and the Korean market average, underscoring significant growth potential. However, the stock has shown high volatility recently and forecasts indicate a modest return on equity of 13.1% in three years, which may temper some investor enthusiasm.

• According our earnings growth report, there's an indication that EO Technics might be ready to expand.
• Delve into the full analysis health report here for a deeper understanding of EO Technics.

HD Hyundai Electric (KOSE:A267260)

Overview: HD Hyundai Electric Co., Ltd. manufactures and sells electrical equipment in South Korea, with a market cap of ₩13.07 trillion.

Operations: Revenue Segments (in millions of ₩):

Estimated Discount To Fair Value: 12.9%

HD Hyundai Electric is trading at ₩386,500, approximately 12.9% below its estimated fair value of ₩443,877.52. The company reported strong earnings growth for Q3 2024, with net income reaching ₩116.85 billion compared to ₩53.41 billion the previous year. Although revenues are expected to grow faster than the Korean market average at 14.7% annually, earnings growth is projected to be slower than the market's pace over the next three years.

• Our growth report here indicates HD Hyundai Electric may be poised for an improving outlook.
• Dive into the specifics of HD Hyundai Electric here with our thorough financial health report.

Shandong Sunway Chemical Group (SZSE:002469)

Overview: Shandong Sunway Chemical Group Co., Ltd. offers engineering services in the petrochemical and coal chemical industries in China, with a market cap of CN¥7.72 billion.

Operations: Revenue Segments (in millions of CN¥):

Estimated Discount To Fair Value: 45.8%

Shandong Sunway Chemical Group is trading at CNY 13.09, significantly below its estimated fair value of CNY 24.17, suggesting undervaluation based on cash flows. Despite a decline in recent earnings to CNY 145.95 million for the first nine months of 2024, the company’s earnings are projected to grow substantially at 27.2% annually over three years, outpacing the Chinese market average. However, its dividend yield is not well covered by earnings.

• Our expertly prepared growth report on Shandong Sunway Chemical Group implies its future financial outlook may be stronger than recent results.
• Take a closer look at Shandong Sunway Chemical Group's balance sheet health here in our report.

Where To Now?

• Access the full spectrum of 914 Undervalued Stocks Based On Cash Flows by clicking on this link.
• 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.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

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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