Stock Analysis

Three Stocks Estimated To Be Priced Below Their Intrinsic Value In November 2024

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As global markets react to the recent U.S. election results, with major indices reaching record highs and investors anticipating favorable economic policies, the focus on identifying undervalued stocks becomes increasingly pertinent. In this environment of optimism and potential policy shifts, discerning investors may find opportunities in stocks that appear to be priced below their intrinsic value, offering a chance to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Shenzhen King Explorer Science and Technology (SZSE:002917)CN¥9.29CN¥18.8250.6%
UMB Financial (NasdaqGS:UMBF)US$123.80US$245.8749.6%
NBT Bancorp (NasdaqGS:NBTB)US$50.32US$99.9349.6%
Decisive Dividend (TSXV:DE)CA$6.18CA$12.2349.5%
XPEL (NasdaqCM:XPEL)US$45.62US$91.0349.9%
GRCS (TSE:9250)¥1461.00¥3091.1752.7%
Pinterest (NYSE:PINS)US$29.98US$59.5349.6%
JYP Entertainment (KOSDAQ:A035900)₩57800.00₩50280.41-15%
Medios (XTRA:ILM1)€14.88€29.6749.8%
Hotel ShillaLtd (KOSE:A008770)₩38050.00₩73345.5748.1%

Click here to see the full list of 906 stocks from our Undervalued Stocks Based On Cash Flows screener.

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

BHG Group (OM:BHG)

Overview: BHG Group AB (publ) is a consumer e-commerce company operating in Sweden, Finland, Denmark, Norway, the rest of Europe, and internationally with a market cap of SEK3.30 billion.

Operations: The company's revenue segments include Value Home at SEK2.52 billion, Premium Living at SEK2.28 billion, and Home Improvement at SEK5.16 billion.

Estimated Discount To Fair Value: 34.8%

BHG Group's recent earnings report showed a reduced net loss of SEK 67.2 million for Q3 2024, a significant improvement from the previous year's SEK 1,308.8 million loss. Despite volatile share prices, BHG is trading at SEK 18.4, below its estimated fair value of SEK 28.24 and is considered undervalued by over 20% based on discounted cash flows. Revenue growth is expected to outpace the Swedish market average significantly over the next few years.

OM:BHG Discounted Cash Flow as at Nov 2024

PAL GROUP Holdings (TSE:2726)

Overview: PAL GROUP Holdings CO., LTD. is involved in the planning, manufacture, wholesale, and retail of men's and women's clothing and accessories in Japan, with a market cap of ¥261.77 billion.

Operations: The company's revenue segments include the planning, manufacture, wholesale, and retail of men's and women's clothing and accessories in Japan.

Estimated Discount To Fair Value: 29.4%

PAL GROUP Holdings is currently trading at ¥2975, considerably below its estimated fair value of ¥4212.51, indicating it is undervalued by over 20% based on discounted cash flows. The company's earnings are projected to grow 11.88% annually, surpassing the Japanese market average of 8%. Despite recent share price volatility, PAL GROUP expects net sales of ¥209.22 billion and operating profit of ¥22.96 billion for fiscal year ending February 2025.

TSE:2726 Discounted Cash Flow as at Nov 2024

Exchange Income (TSX:EIF)

Overview: Exchange Income Corporation operates in aerospace, aviation services, equipment, and manufacturing sectors globally, with a market cap of CA$2.65 billion.

Operations: The company's revenue is derived from two main segments: Aerospace & Aviation, which accounts for CA$1.61 billion, and Manufacturing, contributing CA$1.01 billion.

Estimated Discount To Fair Value: 46.7%

Exchange Income is trading at CA$56.08, significantly below its estimated fair value of CA$105.21, suggesting it is undervalued by over 20% based on discounted cash flows. Revenue and earnings are projected to grow faster than the Canadian market at 9.1% and 26.4% annually, respectively. However, dividends remain poorly covered by earnings or free cash flow, with interest payments also not well supported by earnings despite recent revenue growth in Q3 2024 results.

TSX:EIF Discounted Cash Flow as at Nov 2024

Where To Now?

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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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