Stock Analysis

Three Stocks That Might Be Trading Below Their Estimated Value

WSE:GPP
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In a week marked by record highs in major U.S. indices and geopolitical developments influencing market sentiment, investors are closely monitoring potential opportunities amid fluctuating economic signals. As small-cap stocks join their larger peers in reaching new peaks, the search for undervalued stocks becomes particularly pertinent; such stocks might offer value when broader markets appear buoyant, presenting opportunities for those looking to invest wisely amid ongoing market dynamics.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Corporativo Fragua. de (BMV:FRAGUA B)MX$633.57MX$1257.0749.6%
BP Plastics Holding Bhd (KLSE:BPPLAS)MYR1.20MYR2.3949.7%
Ramssol Group Berhad (KLSE:RAMSSOL)MYR0.70MYR1.3949.5%
Krsnaa Diagnostics (NSEI:KRSNAA)₹996.65₹1971.7449.5%
Equity Bancshares (NYSE:EQBK)US$48.12US$96.1550%
Pluk Phak Praw Rak Mae (SET:OKJ)THB15.50THB30.8649.8%
Acerinox (BME:ACX)€9.92€19.8249.9%
Nidaros Sparebank (OB:NISB)NOK100.10NOK198.6249.6%
Marcus & Millichap (NYSE:MMI)US$40.88US$81.1349.6%
FINEOS Corporation Holdings (ASX:FCL)A$1.90A$3.7749.5%

Click here to see the full list of 889 stocks from our Undervalued Stocks Based On Cash Flows screener.

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

Gambol Pet Group (SZSE:301498)

Overview: Gambol Pet Group Co., Ltd. focuses on the research, development, production, and sale of pet food products in China with a market cap of CN¥26.32 billion.

Operations: The company generates revenue primarily from its Pet Food & Supplies segment, totaling CN¥4.89 billion.

Estimated Discount To Fair Value: 27.7%

Gambol Pet Group is trading 27.7% below its estimated fair value of CNY 91.05, with a current price of CNY 65.8, indicating it may be undervalued based on cash flows. Recent earnings show significant growth, with net income rising to CNY 470.42 million from last year's CNY 314.36 million and revenue increasing to CNY 3.67 billion from CNY 3.11 billion year-on-year, supporting its potential as an attractive investment opportunity in the pet industry sector.

SZSE:301498 Discounted Cash Flow as at Dec 2024
SZSE:301498 Discounted Cash Flow as at Dec 2024

Wiwynn (TWSE:6669)

Overview: Wiwynn Corporation manufactures and sells servers and storage products for cloud infrastructure and hyperscale data centers globally, with a market cap of NT$432.08 billion.

Operations: The company's revenue from the computer hardware segment amounts to NT$303.48 billion.

Estimated Discount To Fair Value: 31.8%

Wiwynn is trading 31.8% below its estimated fair value of NT$3,408.27, with a current price of NT$2,325, suggesting potential undervaluation based on cash flows. Recent earnings highlight robust growth; third-quarter sales rose to TWD 97.82 billion from TWD 52.82 billion year-on-year, with net income increasing to TWD 6.33 billion from TWD 2.62 billion last year. Despite high volatility and past shareholder dilution, revenue and earnings are projected to grow significantly faster than the market average.

TWSE:6669 Discounted Cash Flow as at Dec 2024
TWSE:6669 Discounted Cash Flow as at Dec 2024

Grupa Pracuj (WSE:GPP)

Overview: Grupa Pracuj S.A. operates in the digital recruitment market in Poland and Ukraine, with a market cap of PLN4.16 billion.

Operations: The company generates revenue from its Staffing & Outsourcing Services segment, amounting to PLN756.07 million.

Estimated Discount To Fair Value: 36.7%

Grupa Pracuj is trading at PLN 61, significantly below its estimated fair value of PLN 96.33, highlighting potential undervaluation based on cash flows. Recent earnings show growth, with third-quarter sales rising to PLN 192.95 million from PLN 181.16 million year-on-year and net income increasing to PLN 60.59 million from PLN 49.59 million last year. Despite an unstable dividend track record, revenue and earnings are projected to outpace the Polish market's growth rates.

WSE:GPP Discounted Cash Flow as at Dec 2024
WSE:GPP Discounted Cash Flow as at Dec 2024

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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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