3 Global Stocks Estimated To Be Trading Below Fair Value In May 2025

As global markets react positively to the recent U.S.-China tariff suspension, with major indices such as the Nasdaq Composite and S&P 500 showing significant gains, investors are keenly observing how these developments might influence broader economic trends. Amidst easing inflationary pressures and shifting consumer sentiment, identifying stocks that are potentially undervalued becomes particularly relevant for those looking to capitalize on market inefficiencies. In this context, a good stock is often characterized by strong fundamentals and a valuation that suggests it is trading below its intrinsic worth, offering potential for growth as market conditions stabilize.

Top 10 Undervalued Stocks Based On Cash Flows

Click here to see the full list of 507 stocks from our Undervalued Global Stocks Based On Cash Flows screener.

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

Almirall (BME:ALM)

Overview: Almirall, S.A. is a biopharmaceutical company specializing in skin health, operating across various regions including Spain, Europe, the Middle East, the United States, Asia, and Africa with a market cap of €2.23 billion.

Operations: Almirall generates its revenue from its focus on dermatological products and treatments across multiple regions including Europe, the United States, and other international markets.

Estimated Discount To Fair Value: 26.5%

Almirall is trading at €10.46, significantly below its estimated fair value of €14.23, indicating potential undervaluation based on discounted cash flow analysis. Despite a low forecasted return on equity of 9.5% in three years, earnings are expected to grow at 32.87% annually, outpacing the Spanish market's growth rate. Recent earnings reports show strong performance with Q1 net income rising to €21.6 million from €7.4 million last year, supporting positive future prospects despite share price volatility and one-off financial impacts.

• The growth report we've compiled suggests that Almirall's future prospects could be on the up.
• Delve into the full analysis health report here for a deeper understanding of Almirall.

Norbit (OB:NORBT)

Overview: Norbit ASA offers technology solutions across various industries and has a market capitalization of NOK12.42 billion.

Operations: Revenue Segments (in millions of NOK):

Estimated Discount To Fair Value: 41.9%

Norbit ASA is trading at NOK 195.2, significantly below its estimated fair value of NOK 335.92, highlighting potential undervaluation based on discounted cash flow analysis. Despite insider selling, the company's earnings grew by 85.1% last year and are forecasted to grow at 23.4% annually, surpassing the Norwegian market's growth rate. Recent Q1 results show strong performance with net income rising to NOK 89.7 million from NOK 30.2 million a year ago, supporting positive future prospects amidst new contracts and strategic growth initiatives.

• The analysis detailed in our Norbit growth report hints at robust future financial performance.
• Navigate through the intricacies of Norbit with our comprehensive financial health report here.

Asmodee Group (OM:ASMDEE B)

Overview: Asmodee Group AB (publ) is involved in the publishing and distribution of tabletop games, with a market capitalization of SEK29.55 billion.

Operations: The company generates revenue primarily from its Games & Toys segment, amounting to €1.30 billion.

Estimated Discount To Fair Value: 15.1%

Asmodee Group AB is trading at SEK 126.44, below its estimated fair value of SEK 148.86, suggesting undervaluation based on cash flows. Although revenue grew by 2.8% last year and is forecast to grow at a modest 5.5% annually, earnings are expected to increase significantly by 68.03% per year over the next three years, outpacing market growth expectations despite a low future return on equity forecast of 8%.

• Our comprehensive growth report raises the possibility that Asmodee Group is poised for substantial financial growth.
• Unlock comprehensive insights into our analysis of Asmodee Group stock in this financial health report.

Seize The Opportunity

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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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