3 Stocks That Investors May Be Undervaluing By Up To 37.7%

As global markets navigate the uncertainties surrounding the incoming Trump administration's policies, investors are witnessing a mixed performance across various sectors. With shifts in regulatory expectations and interest rate forecasts, discerning undervalued stocks becomes crucial for those looking to capitalize on market inefficiencies. In today's environment, identifying stocks that may be undervalued by up to 37.7% requires careful analysis of their fundamentals and potential growth prospects amidst evolving economic conditions.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Giant Biogene Holding (SEHK:2367)	HK$48.90	HK$97.69	49.9%
Wistron (TWSE:3231)	NT$114.00	NT$227.50	49.9%
SISB (SET:SISB)	THB31.75	THB63.41	49.9%
Shoei (TSE:7839)	¥2368.00	¥4720.11	49.8%
A.L.A. società per azioni (BIT:ALA)	€24.80	€49.51	49.9%
EnomotoLtd (TSE:6928)	¥1474.00	¥2940.30	49.9%
Enento Group Oyj (HLSE:ENENTO)	€18.06	€36.11	50%
Intermedical Care and Lab Hospital (SET:IMH)	THB4.94	THB9.87	50%
Saipem (BIT:SPM)	€2.327	€4.65	50%
Credit Clear (ASX:CCR)	A$0.355	A$0.71	50%

Click here to see the full list of 921 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Bandhan Bank (NSEI:BANDHANBNK)

Overview: Bandhan Bank Limited provides banking and financial services for personal and business customers in India, with a market cap of ₹270.01 billion.

Operations: The company's revenue segments consist of Treasury at ₹9.27 billion, Retail Banking at ₹88.22 billion, Wholesale Banking at ₹5.57 billion, and Other Banking Business at ₹3.20 billion.

Estimated Discount To Fair Value: 22.2%

Bandhan Bank is trading at ₹167.61, significantly below its estimated fair value of ₹215.46, suggesting it is undervalued based on cash flows. Revenue growth is expected to outpace the market at 22.7% annually, while earnings are forecasted to grow significantly over the next three years. Despite a high level of bad loans and a low allowance for them, analysts agree on a potential price rise by 25%. Recent leadership changes may stabilize operations further.

• Insights from our recent growth report point to a promising forecast for Bandhan Bank's business outlook.
• Delve into the full analysis health report here for a deeper understanding of Bandhan Bank.

Quess (NSEI:QUESS)

Overview: Quess Corp Limited is a business services provider operating in India, South East Asia, the Middle East, and North America with a market cap of ₹97.49 billion.

Operations: The company's revenue segments include Workforce Management at ₹142.76 billion, Operating Asset Management at ₹29.06 billion, Global Technology Solutions (excluding Product Led Business) at ₹24.27 billion, and Product Led Business at ₹3.25 billion.

Estimated Discount To Fair Value: 37.7%

Quess Corp, trading at ₹655.95, is significantly undervalued based on cash flows with an estimated fair value of ₹1,052.89. The company's earnings are forecasted to grow significantly at 23.2% annually, surpassing the Indian market average growth rate. Recent earnings reports show strong performance with net income increasing to ₹923.89 million for Q2 2024 from ₹719.26 million a year ago, reflecting robust financial health and potential for future growth despite slower revenue growth forecasts compared to peers.

• Our expertly prepared growth report on Quess implies its future financial outlook may be stronger than recent results.
• Dive into the specifics of Quess here with our thorough financial health report.

Mouwasat Medical Services (SASE:4002)

Overview: Mouwasat Medical Services Company operates in the healthcare sector by managing and maintaining hospitals, medical centers, drug stores, medicine warehouses, and pharmacies across Saudi Arabia with a market cap of SAR18.30 billion.

Operations: The company's revenue segments include Pharmaceuticals, generating SAR451.12 million, and Medical Services, contributing SAR2.45 billion.

Estimated Discount To Fair Value: 23.2%

Mouwasat Medical Services, trading at SAR 91.50, is undervalued based on cash flows with a fair value estimate of SAR 119.14. Despite a slight dip in Q3 net income to SAR 149.65 million from SAR 156.38 million last year, earnings are forecasted to grow at 16.6% annually, outpacing the Saudi Arabian market average growth rate of 6.6%. The company also pays a reliable dividend yield of 1.91%.

• In light of our recent growth report, it seems possible that Mouwasat Medical Services' financial performance will exceed current levels.
• Navigate through the intricacies of Mouwasat Medical Services with our comprehensive financial health report here.

Taking Advantage

• Take a closer look at our Undervalued Stocks Based On Cash Flows list of 921 companies by clicking 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.
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Ready To Venture Into Other Investment Styles?

• 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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