3 Stocks Estimated To Be Trading Up To 15.1% Below Intrinsic Value

January 01, 2025

As global markets navigate a mixed economic landscape with fluctuating consumer confidence and varied performance across regions, investors are increasingly on the lookout for opportunities that might be undervalued. In this context, identifying stocks trading below their intrinsic value can offer potential advantages, especially when market conditions present both challenges and openings for strategic investment decisions.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Globetronics Technology Bhd (KLSE:GTRONIC)	MYR0.585	MYR1.17	49.8%
Wasion Holdings (SEHK:3393)	HK$7.13	HK$14.19	49.7%
First Solar (NasdaqGS:FSLR)	US$176.24	US$350.71	49.7%
Strike CompanyLimited (TSE:6196)	¥3655.00	¥7309.53	50%
S Foods (TSE:2292)	¥2737.00	¥5472.35	50%
Charter Hall Group (ASX:CHC)	A$14.35	A$28.70	50%
Cettire (ASX:CTT)	A$1.51	A$3.02	49.9%
Medley (TSE:4480)	¥3835.00	¥7652.96	49.9%
Ally Financial (NYSE:ALLY)	US$36.01	US$71.71	49.8%
ASMPT (SEHK:522)	HK$74.90	HK$149.66	50%

Click here to see the full list of 872 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Yapi ve Kredi Bankasi (IBSE:YKBNK)

Overview: Yapi ve Kredi Bankasi A.S., along with its subsidiaries, offers a range of banking products and services in Turkey and internationally, with a market cap of TRY258.65 billion.

Operations: The company's revenue is derived from several segments, including Retail Banking (Incl. Private Banking and Wealth Management) at TRY80.12 billion, Commercial and SME Banking at TRY51.26 billion, Corporate Banking at TRY13.81 billion, Other Domestic Operations at TRY12.60 billion, and Other Foreign Operations contributing TRY4.95 billion.

Estimated Discount To Fair Value: 14.0%

Yapi ve Kredi Bankasi is trading at TRY30.62, below its estimated fair value of TRY35.61, with analysts expecting a 20.4% price rise. Despite a drop in net income from TRY48.70 billion to TRY22.41 billion over the past year, earnings are forecast to grow significantly at 44% annually, outpacing the Turkish market's growth rate of 34.9%. However, profit margins have decreased and non-performing loans remain high at 3%.

IBSE:YKBNK Discounted Cash Flow as at Jan 2025

EQT (OM:EQT)

Overview: EQT AB (publ) is a global private equity firm focusing on private capital and real asset segments, with a market cap of approximately SEK361.61 billion.

Operations: The company's revenue is primarily derived from its Private Capital segment (€1.28 billion) and Real Assets segment (€878.70 million), with an additional contribution from the Central segment (€37.20 million).

Estimated Discount To Fair Value: 15.1%

EQT is trading at SEK306.1, slightly below its fair value estimate of SEK360.35, with earnings expected to grow significantly at 33.3% annually, outpacing the Swedish market's growth rate of 14.8%. Despite recent insider selling and large one-off items affecting results, EQT's revenue is projected to grow faster than the market at 15.1% per year. Ongoing M&A activities could influence future cash flow dynamics and valuation assessments.

OM:EQT Discounted Cash Flow as at Jan 2025

Fortune Electric (TWSE:1519)

Overview: Fortune Electric Co., Ltd. manufactures, processes, and sells transformers, inverters, power distribution boards, and high-low voltage switches both in Taiwan and internationally with a market cap of NT$161.67 billion.

Operations: The company's revenue segments include NT$1.69 billion from General Contracting and NT$16.96 billion from Mechanical and Electrical operations.

Estimated Discount To Fair Value: 11.2%

Fortune Electric, trading at NT$563, is undervalued relative to its fair value estimate of NT$633.83. Recent earnings growth of 97.8% and a forecasted annual profit increase of 32.1% highlight strong cash flow potential, exceeding Taiwan's market average growth rate of 19%. Despite high share price volatility, the company’s expansion plans with a new factory construction worth TWD 773.95 million suggest strategic capacity enhancements to support future revenue growth surpassing 24% annually.

TWSE:1519 Discounted Cash Flow as at Jan 2025

Summing It All Up

Reveal the 872 hidden gems among our Undervalued Stocks Based On Cash Flows screener with a single click here.
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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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