3 Stocks Estimated To Be Trading Up To 49.4% Below Intrinsic Value

As global markets navigate a turbulent start to the year, characterized by resilient labor data and persistent inflation concerns, investors are left grappling with uncertainty. Amidst these fluctuations, value stocks have shown relative resilience compared to their growth counterparts, sparking interest in identifying stocks that may be trading below their intrinsic value. In such an environment, a good stock is often one that demonstrates strong fundamentals and potential for growth despite broader market volatility.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Alltop Technology (TPEX:3526)	NT$265.50	NT$529.34	49.8%
Türkiye Sise Ve Cam Fabrikalari (IBSE:SISE)	TRY39.24	TRY78.32	49.9%
Beijing Yuanliu Hongyuan Electronic Technology (SHSE:603267)	CN¥35.51	CN¥70.91	49.9%
Sudarshan Chemical Industries (BSE:506655)	₹1114.10	₹2222.79	49.9%
GemPharmatech (SHSE:688046)	CN¥13.06	CN¥26.06	49.9%
Ningbo ZhongDa Leader Intelligent Transmission (SZSE:002896)	CN¥43.64	CN¥87.16	49.9%
Greenworks (Jiangsu) (SZSE:301260)	CN¥13.96	CN¥27.76	49.7%
Shinko Electric Industries (TSE:6967)	¥5871.00	¥11706.19	49.8%
Mobileye Global (NasdaqGS:MBLY)	US$16.51	US$32.92	49.9%
Vista Group International (NZSE:VGL)	NZ$3.11	NZ$6.20	49.8%

Click here to see the full list of 876 stocks from our Undervalued Stocks Based On Cash Flows screener.

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

Hyosung Heavy Industries (KOSE:A298040)

Overview: Hyosung Heavy Industries Corporation manufactures and sells heavy electrical equipment both in South Korea and internationally, with a market cap of ₩4.37 trillion.

Operations: The company's revenue is primarily derived from its Heavy Industry segment at ₩3.47 trillion and its Construction segment at ₩1.76 trillion.

Estimated Discount To Fair Value: 49.4%

Hyosung Heavy Industries is trading at ₩480,500, significantly below its estimated fair value of ₩950,442.92, indicating potential undervaluation based on cash flows. Despite debt concerns not being fully covered by operating cash flow, the company's earnings are forecast to grow at 39.7% annually over the next three years—outpacing the Korean market's 28.8%. Recent inclusion in the KOSPI 200 Index may enhance visibility among investors.

• The growth report we've compiled suggests that Hyosung Heavy Industries' future prospects could be on the up.
• Unlock comprehensive insights into our analysis of Hyosung Heavy Industries stock in this financial health report.

Kingsoft (SEHK:3888)

Overview: Kingsoft Corporation Limited operates in the entertainment and office software and services sectors across Mainland China, Hong Kong, and internationally, with a market cap of HK$44.51 billion.

Operations: The company's revenue is primarily derived from its online games and others segment, which generated CN¥4.93 billion, and its office software and services segment, contributing CN¥4.91 billion.

Estimated Discount To Fair Value: 14.7%

Kingsoft is trading at HK$34.3, below its estimated fair value of HK$40.23, suggesting potential undervaluation based on cash flows. Earnings grew substantially over the past year and are forecast to grow 23.68% annually, outpacing the Hong Kong market's growth rate. Despite low future return on equity projections, recent earnings showed a significant increase in net income to CNY 413.45 million for Q3 2024 from CNY 28.49 million a year prior.

• In light of our recent growth report, it seems possible that Kingsoft's financial performance will exceed current levels.
• Navigate through the intricacies of Kingsoft with our comprehensive financial health report here.

Wistron (TWSE:3231)

Overview: Wistron Corporation, along with its subsidiaries, designs, manufactures, and sells information technology products in Taiwan, Asia, and internationally with a market cap of NT$301.83 billion.

Operations: The company generates revenue primarily from its Research and Development and Manufacturing Services Operations, amounting to NT$944.49 billion.

Estimated Discount To Fair Value: 23.4%

Wistron is trading at NT$104.5, below its estimated fair value of NT$136.4, indicating potential undervaluation based on cash flows. Despite a decline in Q3 net income to TWD 4,198.6 million from TWD 4,702.41 million last year, earnings grew by 26.7% over the past year and are forecast to grow annually by 26.8%, outpacing Taiwan's market growth rate of 18.9%. However, future return on equity is projected to be low at 18.3%.

• Our earnings growth report unveils the potential for significant increases in Wistron's future results.
• Dive into the specifics of Wistron here with our thorough financial health report.

Where To Now?

• Explore the 876 names from our Undervalued Stocks Based On Cash Flows screener here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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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