Stock Analysis

3 Undervalued Stocks Estimated To Be Up To 49.1% Below Intrinsic Value

OM:LIAB
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As global markets react to the recent U.S. election results, with major indices reaching record highs amid expectations of economic growth and regulatory changes, investors are keenly observing opportunities that may arise from these shifts. In this environment, identifying undervalued stocks can be particularly rewarding, as they offer potential for appreciation when market conditions align favorably with a company's intrinsic value.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Shenzhen King Explorer Science and Technology (SZSE:002917)CN¥9.53CN¥18.8449.4%
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%
JYP Entertainment (KOSDAQ:A035900)₩53700.00₩106760.0149.7%
XPEL (NasdaqCM:XPEL)US$45.62US$91.0349.9%
Pinterest (NYSE:PINS)US$29.98US$59.5349.6%
GRCS (TSE:9250)¥1500.00¥2976.2449.6%
Medios (XTRA:ILM1)€14.88€29.6749.8%
Hotel ShillaLtd (KOSE:A008770)₩36900.00₩73388.9749.7%

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

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

Lindab International (OM:LIAB)

Overview: Lindab International AB (publ) is a European manufacturer and seller of ventilation system products and solutions, with a market cap of SEK17.67 billion.

Operations: The company generates revenue primarily from its Ventilation Systems segment, which accounts for SEK10.10 billion, and its Profile Systems segment, contributing SEK3.23 billion.

Estimated Discount To Fair Value: 49.1%

Lindab International is trading at SEK 229.4, significantly below its estimated fair value of SEK 450.56, indicating potential undervaluation based on cash flows. Despite a recent decline in net income and earnings per share, Lindab's earnings are expected to grow significantly at 29.6% annually over the next three years, outpacing the Swedish market's growth rate of 15.6%. The company's strategic downsizing in the Czech Republic aims to enhance profitability moving forward.

OM:LIAB Discounted Cash Flow as at Nov 2024
OM:LIAB Discounted Cash Flow as at Nov 2024

Alltop Technology (TPEX:3526)

Overview: Alltop Technology Co., Ltd. is involved in the design, manufacture, and sale of electrical connectors globally, with a market capitalization of NT$17.04 billion.

Operations: The company's revenue is primarily derived from its electronic coupling segment, generating NT$2.95 billion.

Estimated Discount To Fair Value: 48.8%

Alltop Technology is trading at NT$283, well below its estimated fair value of NT$552.98, highlighting potential undervaluation based on cash flows. Despite past shareholder dilution and a dividend not fully covered by free cash flows, the company reported strong third-quarter results with significant revenue and net income growth compared to the previous year. Earnings are forecast to grow significantly at 25.1% annually, surpassing market expectations in Taiwan.

TPEX:3526 Discounted Cash Flow as at Nov 2024
TPEX:3526 Discounted Cash Flow as at Nov 2024

Gift Holdings (TSE:9279)

Overview: Gift Holdings Inc. operates restaurants in Japan, the Republic of South Korea, and internationally with a market cap of ¥71.87 billion.

Operations: The company's revenue is primarily derived from its Food and Beverage Business, which generated ¥26.94 billion.

Estimated Discount To Fair Value: 21.7%

Gift Holdings, trading at ¥3,600, is undervalued by over 20% compared to its fair value of ¥4,597.71. Despite a slight decline in sales percentages year-on-year, the company has shown robust earnings growth of 29.3% last year and is expected to continue growing at 26.22% annually—outpacing the Japanese market's average. The recent expansion into Shanghai with new store openings aligns with their aggressive growth strategy domestically and internationally.

TSE:9279 Discounted Cash Flow as at Nov 2024
TSE:9279 Discounted Cash Flow as at Nov 2024

Taking Advantage

  • Unlock our comprehensive list of 906 Undervalued Stocks Based On Cash Flows by clicking 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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