Stock Analysis

3 Stocks Estimated To Be Undervalued In January 2025

OM:NORVA
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As we approach January 2025, global markets are experiencing mixed signals with U.S. consumer confidence declining and European stocks seeing modest gains during the holiday-shortened week. Amid these fluctuations, identifying undervalued stocks becomes crucial as investors seek opportunities that may offer potential value in a market characterized by both growth and uncertainty.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Lundin Gold (TSX:LUG)CA$31.92CA$63.8150%
Wasion Holdings (SEHK:3393)HK$7.05HK$14.0849.9%
Tourmaline Oil (TSX:TOU)CA$67.37CA$134.3449.9%
Globetronics Technology Bhd (KLSE:GTRONIC)MYR0.59MYR1.1849.8%
Bank BTPN Syariah (IDX:BTPS)IDR935.00IDR1869.7350%
Strike CompanyLimited (TSE:6196)¥3655.00¥7284.3549.8%
Camden National (NasdaqGS:CAC)US$42.25US$84.4450%
S Foods (TSE:2292)¥2737.00¥5472.3550%
Emporiki Eisagogiki Aftokiniton Ditrohon kai Mihanon Thalassis Societe Anonyme (ATSE:MOTO)€2.76€5.5049.8%
Lea Bank (OB:LEA)NOK10.40NOK20.7849.9%

Click here to see the full list of 903 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

TSE (KOSDAQ:A131290)

Overview: TSE Co., Ltd offers semiconductor test solutions both in South Korea and internationally, with a market cap of approximately ₩445.44 billion.

Operations: TSE Co., Ltd's revenue is primarily derived from providing semiconductor test solutions in both domestic and international markets.

Estimated Discount To Fair Value: 49.3%

Trading at ₩43,500, TSE is significantly undervalued based on discounted cash flow analysis, with a fair value estimate of ₩85,866.04. While its return on equity is forecast to be low at 12.9% in three years, earnings are expected to grow substantially by 38.2% annually, outpacing the Korean market's growth rate of 28.7%. Despite slower revenue growth at 12.6%, it surpasses the broader market's pace of 9%.

KOSDAQ:A131290 Discounted Cash Flow as at Jan 2025
KOSDAQ:A131290 Discounted Cash Flow as at Jan 2025

C&C International (KOSDAQ:A352480)

Overview: C&C International Co., Ltd is involved in the research, development, manufacture, and sale of cosmetics in Korea with a market cap of ₩446.37 billion.

Operations: The company generates revenue from its Personal Products segment, amounting to ₩289.76 million.

Estimated Discount To Fair Value: 42.7%

C&C International, trading at ₩45,000, is significantly undervalued with a fair value estimate of ₩78,470.47. Despite recent share price volatility, its earnings grew by 62.4% last year and are projected to increase by 25% annually. Revenue is expected to grow at 24.6% per year, outpacing the Korean market's growth rate of 9%. The company's return on equity is forecasted to reach a robust 21.5%, indicating strong future profitability potential.

KOSDAQ:A352480 Discounted Cash Flow as at Jan 2025
KOSDAQ:A352480 Discounted Cash Flow as at Jan 2025

Norva24 Group (OM:NORVA)

Overview: Norva24 Group AB (Publ) operates in Northern Europe, offering underground infrastructure maintenance services, with a market cap of SEK4.94 billion.

Operations: The company generates revenue from its underground infrastructure maintenance services, with a focus on waste management, amounting to NOK3.50 billion.

Estimated Discount To Fair Value: 40.4%

Norva24 Group, trading at SEK27.15, is undervalued with a fair value estimate of SEK45.57. The company's earnings are projected to grow significantly at 21.2% annually, surpassing the Swedish market's growth rate of 14.6%. Despite recent declines in net income and earnings per share for Q3 2024 compared to the previous year, revenue increased from NOK 792.2 million to NOK 934.8 million, highlighting robust sales growth amidst market challenges.

OM:NORVA Discounted Cash Flow as at Jan 2025
OM:NORVA Discounted Cash Flow as at Jan 2025

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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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