Stock Analysis

3 Value Stocks Estimated To Be Trading At Discounts Of Up To 47.3%

HLSE:PON1V
Source: Shutterstock

As global markets navigate higher-than-expected inflation data and fluctuating interest rate expectations, U.S. stock indexes are climbing toward record highs, with growth stocks outperforming value shares. In this environment, identifying undervalued stocks can offer investors potential opportunities to capitalize on market inefficiencies, particularly when these stocks are trading at significant discounts relative to their intrinsic value.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Provident Financial Services (NYSE:PFS)US$18.48US$36.9249.9%
Smurfit Westrock (NYSE:SW)US$55.32US$110.3249.9%
América Móvil. de (BMV:AMX B)MX$14.90MX$29.7149.9%
Power Wind Health Industry (TWSE:8462)NT$111.00NT$221.0749.8%
Guangdong Fenghua Advanced Technology (Holding) (SZSE:000636)CN¥15.07CN¥30.0249.8%
Com2uS (KOSDAQ:A078340)₩48300.00₩96047.7849.7%
F-Secure Oyj (HLSE:FSECURE)€1.706€3.4149.9%
Likewise Group (AIM:LIKE)£0.185£0.3749.8%
EKINOPS (ENXTPA:EKI)€3.285€6.5750%
Hindustan Foods (BSE:519126)₹572.85₹1143.6449.9%

Click here to see the full list of 927 stocks from our Undervalued Stocks Based On Cash Flows screener.

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

Ponsse Oyj (HLSE:PON1V)

Overview: Ponsse Oyj is a manufacturer of cut-to-length forest machines with operations across Northern Europe, Central and Southern Europe, North and South America, and internationally, holding a market cap of €711.15 million.

Operations: Revenue Segments (in millions of €): null

Estimated Discount To Fair Value: 36%

Ponsse Oyj, trading at 36% below its estimated fair value of €39.66, presents a compelling case for being undervalued based on cash flows. Despite a drop in sales to €223.5 million in Q4 2024, net income rose to €12.18 million from the previous year. Earnings are projected to grow significantly at 43.7% annually over the next three years, outpacing the Finnish market's growth rate of 11.8%.

HLSE:PON1V Discounted Cash Flow as at Feb 2025
HLSE:PON1V Discounted Cash Flow as at Feb 2025

Ratchthani Leasing (SET:THANI)

Overview: Ratchthani Leasing Public Company Limited, along with its subsidiary, offers hire-purchase and leasing services in Thailand and has a market cap of THB9.84 billion.

Operations: Ratchthani Leasing generates revenue primarily through its hire-purchase and leasing services in Thailand.

Estimated Discount To Fair Value: 47.3%

Ratchthani Leasing is trading at 47.3% below its fair value estimate of THB3, highlighting its undervaluation based on cash flows. Despite a volatile share price recently, earnings are expected to grow significantly at 26% annually, outpacing the Thai market's growth rate. However, the company faces challenges with high debt levels and a recent decline in revenue and net income for 2024 compared to the previous year.

SET:THANI Discounted Cash Flow as at Feb 2025
SET:THANI Discounted Cash Flow as at Feb 2025

Guangdong Mingyang ElectricLtd (SZSE:301291)

Overview: Guangdong Mingyang Electric Co., Ltd. focuses on the research, development, production, and sale of high/low voltage switchgear, transformers, and power transmission and distribution equipment in China with a market cap of CN¥16.60 billion.

Operations: Guangdong Mingyang Electric Co., Ltd. generates revenue through its operations in high/low voltage switchgear, transformers, and power transmission and distribution equipment within China.

Estimated Discount To Fair Value: 44.3%

Guangdong Mingyang Electric Ltd. is trading 44.3% below its estimated fair value of CN¥95.45, highlighting its undervaluation based on cash flows. Despite recent share price volatility, earnings are forecast to grow significantly at 24.06% annually, though slower than the CN market's growth rate of 25%. Revenue growth is strong at 22.5%, surpassing market expectations, but the company faces challenges with a low projected return on equity of 17.5%.

SZSE:301291 Discounted Cash Flow as at Feb 2025
SZSE:301291 Discounted Cash Flow as at Feb 2025

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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 HLSE:PON1V

Ponsse Oyj

Operates as manufacturer of cut-to-length forest machines in Northern Europe, Central and Southern Europe, North and South America, and internationally.

Excellent balance sheet with reasonable growth potential.