Stock Analysis

Three Stocks That May Be Priced Below Their Estimated Value In January 2025

SEHK:1523
Source: Shutterstock

As global markets navigate the evolving landscape of U.S. policy changes under President Trump, major indices like the S&P 500 and Dow Jones Industrial Average have been reaching new heights, buoyed by optimism surrounding potential trade deals and AI investments. Amidst this environment of fluctuating consumer sentiment and manufacturing rebounds, identifying stocks that may be priced below their estimated value becomes crucial for investors seeking opportunities in a market characterized by both growth potential and economic uncertainties.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Alltop Technology (TPEX:3526)NT$264.50NT$526.7249.8%
Berkshire Hills Bancorp (NYSE:BHLB)US$28.32US$56.6050%
Shenzhen Yinghe Technology (SZSE:300457)CN¥18.80CN¥37.5449.9%
World Fitness Services (TWSE:2762)NT$92.70NT$184.6349.8%
Vertiseit (OM:VERT B)SEK50.20SEK99.9349.8%
Fudo Tetra (TSE:1813)¥2153.00¥4301.3049.9%
Greenworks (Jiangsu) (SZSE:301260)CN¥13.95CN¥27.8149.8%
Shinko Electric Industries (TSE:6967)¥5854.00¥11678.6849.9%
Jiangsu Chuanzhiboke Education Technology (SZSE:003032)CN¥9.10CN¥18.1950%
Tenable Holdings (NasdaqGS:TENB)US$43.39US$86.6549.9%

Click here to see the full list of 887 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Hanall Biopharma (KOSE:A009420)

Overview: Hanall Biopharma Co., Ltd. is a pharmaceutical company that manufactures and sells pharmaceutical products both in South Korea and internationally, with a market cap of ₩2.09 trillion.

Operations: The company's revenue from the manufacture and sale of pharmaceuticals is ₩134.24 billion.

Estimated Discount To Fair Value: 21.8%

Hanall Biopharma is trading at ₩41,150, significantly below its estimated fair value of ₩52,646.98. The company is expected to become profitable within three years and has a forecasted revenue growth rate of 18.9% annually, outpacing the Korean market average. Despite recent earnings declines and net losses for nine months ending September 2024, successful Phase 1 trials for Parkinson's therapy HL192 highlight potential future growth avenues alongside ongoing clinical developments in other treatments.

KOSE:A009420 Discounted Cash Flow as at Jan 2025
KOSE:A009420 Discounted Cash Flow as at Jan 2025

Electrolux Professional (OM:EPRO B)

Overview: Electrolux Professional AB (publ) offers food service, beverage, and laundry products and solutions to various service facilities such as restaurants and hotels, with a market cap of approximately SEK21.64 billion.

Operations: The company generates revenue from its Laundry segment, amounting to SEK4.70 billion, and Food & Beverage segment, totaling SEK7.53 billion.

Estimated Discount To Fair Value: 38.6%

Electrolux Professional is trading at SEK75.3, significantly below its estimated fair value of SEK122.73, reflecting a potential undervaluation based on cash flows. Despite a high debt level, the company's earnings are projected to grow significantly over the next three years at 20.44% annually, outpacing the Swedish market's average growth rate of 14%. Recent leadership changes with Bo Erickson joining as President Food Americas may enhance strategic direction and operational efficiency in key markets.

OM:EPRO B Discounted Cash Flow as at Jan 2025
OM:EPRO B Discounted Cash Flow as at Jan 2025

Plover Bay Technologies (SEHK:1523)

Overview: Plover Bay Technologies Limited is an investment holding company that designs, develops, and markets software-defined wide area network routers, with a market cap of HK$5.58 billion.

Operations: The company's revenue segments include $15.19 million from sales of SD-WAN routers with fixed first connectivity, $59.87 million from sales of SD-WAN routers with mobile first connectivity, and $31.86 million from software licenses and warranty and support services.

Estimated Discount To Fair Value: 14.8%

Plover Bay Technologies is trading at HK$5.06, approximately 14.8% below its fair value estimate of HK$5.94, suggesting potential undervaluation based on cash flows. The company forecasts earnings growth of 17.3% annually, surpassing the Hong Kong market average of 11.3%. Recent guidance indicates a profit increase exceeding 10% compared to last year's US$28.1 million due to higher sales volumes and improved net profit margins from SD-WAN router products and new connectivity offerings.

SEHK:1523 Discounted Cash Flow as at Jan 2025
SEHK:1523 Discounted Cash Flow as at Jan 2025

Summing It All Up

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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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About SEHK:1523

Plover Bay Technologies

An investment holding company, designs, develops, and markets software defined wide area network routers.

Outstanding track record with excellent balance sheet.

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