Stock Analysis

3 KRX Stocks Estimated To Be Trading At Up To 48.6% Below Intrinsic Value

KOSE:A326030
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The South Korea stock market recently halted a two-day winning streak, shedding 11.68 points to finish at 2,556.73, although it is expected to rebound amid positive global forecasts. In this fluctuating environment, identifying undervalued stocks can be crucial for investors looking to capitalize on potential growth opportunities.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

NameCurrent PriceFair Value (Est)Discount (Est)
VIOL (KOSDAQ:A335890)₩9840.00₩17899.0045%
HANMI Semiconductor (KOSE:A042700)₩108500.00₩197025.6844.9%
Samyang Foods (KOSE:A003230)₩599000.00₩1086674.0244.9%
TOVISLtd (KOSDAQ:A051360)₩20650.00₩39504.1347.7%
Wonik Ips (KOSDAQ:A240810)₩34600.00₩67165.8248.5%
JNTC (KOSDAQ:A204270)₩18830.00₩34350.4845.2%
Jeisys Medical (KOSDAQ:A287410)₩12940.00₩23779.9745.6%
SK Biopharmaceuticals (KOSE:A326030)₩92300.00₩179407.0848.6%
ABCO Electronics (KOSDAQ:A036010)₩6180.00₩11575.4246.6%
ADTechnologyLtd (KOSDAQ:A200710)₩18020.00₩32803.4245.1%

Click here to see the full list of 40 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

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

Cafe24 (KOSDAQ:A042000)

Overview: Cafe24 Corp. operates a global e-commerce platform and has a market cap of ₩824.48 billion.

Operations: Cafe24 Corp. generates revenue from its global e-commerce platform, with a market cap of ₩824.48 billion.

Estimated Discount To Fair Value: 33.6%

Cafe24 is trading at ₩34,100, which is 33.6% below its estimated fair value of ₩51,367.46. The company’s revenue is forecast to grow at 10.7% per year, outpacing the South Korean market average of 10%. Despite high share price volatility over the past three months and recent shareholder dilution, Cafe24's earnings are projected to grow by 44% annually and it is expected to become profitable within three years.

KOSDAQ:A042000 Discounted Cash Flow as at Aug 2024
KOSDAQ:A042000 Discounted Cash Flow as at Aug 2024

PharmaResearch (KOSDAQ:A214450)

Overview: PharmaResearch Co., Ltd., along with its subsidiaries, operates as a biopharmaceutical company primarily in South Korea and has a market cap of ₩1.78 trillion.

Operations: PharmaResearch's revenue from pharmaceuticals amounts to ₩280.29 billion.

Estimated Discount To Fair Value: 44.3%

PharmaResearch is trading at ₩172,000, significantly below its estimated fair value of ₩308,916.70. Earnings grew by 55.4% last year and are forecast to grow 20.74% annually over the next three years, though slower than the South Korean market average of 28%. Revenue is expected to increase by 19.8% per year, outpacing the market's 10%. Despite high share price volatility recently, analysts agree on a potential price rise of 29.1%.

KOSDAQ:A214450 Discounted Cash Flow as at Aug 2024
KOSDAQ:A214450 Discounted Cash Flow as at Aug 2024

SK Biopharmaceuticals (KOSE:A326030)

Overview: SK Biopharmaceuticals Co., Ltd. is a pharmaceutical company focused on researching and developing drugs for central nervous system disorders, with a market cap of ₩7.23 billion.

Operations: SK Biopharmaceuticals generates revenue primarily from the research and development of treatments for central nervous system disorders.

Estimated Discount To Fair Value: 48.6%

SK Biopharmaceuticals is trading at ₩92,300, significantly below its estimated fair value of ₩179,407.08. The company is forecast to become profitable within three years and has shown robust revenue growth of 29.9% annually over the past five years. Future revenue is expected to grow at 21.8% per year, outpacing the market's 10%. Analysts project a high return on equity of 33.8%, reinforcing its undervaluation based on discounted cash flows by more than 20%.

KOSE:A326030 Discounted Cash Flow as at Aug 2024
KOSE:A326030 Discounted Cash Flow as at Aug 2024

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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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