Top 3 KRX Stocks Estimated Below Intrinsic Value In September 2024

In the last week, the South Korean market has stayed flat, with notable gains of 5.6% in the Healthcare sector. Despite a flat performance over the past 12 months, earnings are forecast to grow by 29% annually, highlighting potential opportunities for investors seeking undervalued stocks. Identifying such stocks involves finding companies trading below their intrinsic value that can benefit from anticipated earnings growth and sector-specific momentum.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

Name	Current Price	Fair Value (Est)	Discount (Est)
APR (KOSE:A278470)	₩291500.00	₩520794.92	44%
VIOL (KOSDAQ:A335890)	₩8870.00	₩17713.89	49.9%
T'Way Air (KOSE:A091810)	₩3035.00	₩5729.83	47%
Oscotec (KOSDAQ:A039200)	₩37100.00	₩65583.14	43.4%
Intellian Technologies (KOSDAQ:A189300)	₩51700.00	₩91022.15	43.2%
ABCO Electronics (KOSDAQ:A036010)	₩5950.00	₩11516.69	48.3%
Global Tax Free (KOSDAQ:A204620)	₩3500.00	₩6395.00	45.3%
Shinsung E&GLtd (KOSE:A011930)	₩1637.00	₩2979.40	45.1%
Hotel ShillaLtd (KOSE:A008770)	₩45050.00	₩81195.67	44.5%
Kakao Games (KOSDAQ:A293490)	₩16730.00	₩29360.89	43%

Click here to see the full list of 35 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Oscotec (KOSDAQ:A039200)

Overview: Oscotec Inc. is a biotechnology company involved in drug development, functional materials, related products, and dental bone graft materials with a market cap of ₩1.42 billion.

Operations: The company generates revenue from various segments including the Food Business Division (₩1.69 billion), Medical Business Sector (₩1.63 billion), New Drug Business Division (₩990.90 million), and Functional Materials Division (₩310.71 million).

Estimated Discount To Fair Value: 43.4%

Oscotec is trading at ₩37,100, significantly below its estimated fair value of ₩65,583.14. The company’s revenue is forecast to grow 68.9% per year, outpacing the South Korean market's growth rate of 10.4%. Earnings are expected to increase by 122% annually, and Oscotec is projected to achieve profitability within three years with a high return on equity forecasted at 27.5%. However, its share price has been highly volatile recently.

• In light of our recent growth report, it seems possible that Oscotec's financial performance will exceed current levels.
• Delve into the full analysis health report here for a deeper understanding of Oscotec.

Kakao Games (KOSDAQ:A293490)

Overview: Kakao Games Corporation operates a mobile and PC online game service platform for gamers worldwide, with a market cap of ₩1.37 trillion.

Operations: Kakao Games generates revenue primarily from its computer graphics segment, amounting to ₩986.72 million.

Estimated Discount To Fair Value: 43%

Kakao Games is trading at ₩16,730, significantly below its estimated fair value of ₩29,360.89. The company is expected to become profitable within three years with earnings forecasted to grow 110.56% annually. Despite a low projected return on equity of 6.5%, revenue growth is anticipated at 10.6% per year, slightly outpacing the South Korean market's growth rate of 10.4%. Recent private placements raised KRW 270 billion through convertible bonds due in 2029.

• The growth report we've compiled suggests that Kakao Games' future prospects could be on the up.
• Click here to discover the nuances of Kakao Games with our detailed financial health report.

APR (KOSE:A278470)

Overview: APR Co., Ltd manufactures and sells cosmetic products for men and women, with a market cap of ₩2.21 trillion.

Operations: APR Co., Ltd generates revenue primarily from cosmetics (₩614.77 billion) and apparel fashion (₩64.46 billion).

Estimated Discount To Fair Value: 44%

APR Co., Ltd. is trading at ₩291,500, significantly below its estimated fair value of ₩520,794.92. The company has initiated a buyback program worth KRW 60 billion to stabilize stock prices and enhance shareholder value. Despite high volatility in recent months, APR's earnings grew by 35.6% last year and are expected to grow 25.6% annually over the next three years, with revenue projected to increase by 21.7% per year—outpacing market growth rates.

• Our comprehensive growth report raises the possibility that APR is poised for substantial financial growth.
• Take a closer look at APR's balance sheet health here in our report.

Seize The Opportunity

• Dive into all 35 of the Undervalued KRX Stocks Based On Cash Flows we have identified here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• 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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