Chagee Holdings And 2 Other Stocks That May Be Priced Below Estimated Value

Simply Wall St

As the U.S. stock market experiences slight gains following a pause in its recent upward streak, investors are closely watching the tech and crypto sectors for signs of recovery amid fluctuating sentiment. In this environment, identifying undervalued stocks can be particularly appealing for those looking to capitalize on potential market inefficiencies, with Chagee Holdings and two other companies potentially offering such opportunities.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

NameCurrent PriceFair Value (Est)Discount (Est)
Webull (BULL)$9.20$17.9548.8%
Warrior Met Coal (HCC)$77.48$154.1749.7%
Super Group (SGHC) (SGHC)$10.94$21.6449.4%
Sotera Health (SHC)$17.35$33.6548.4%
Nicolet Bankshares (NIC)$126.48$242.1747.8%
MoneyHero (MNY)$1.25$2.4248.4%
Flutter Entertainment (FLUT)$204.12$391.7747.9%
First Busey (BUSE)$23.52$45.3448.1%
DexCom (DXCM)$63.52$126.5449.8%
BioLife Solutions (BLFS)$25.41$49.6948.9%

Click here to see the full list of 212 stocks from our Undervalued US Stocks Based On Cash Flows screener.

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

Chagee Holdings (CHA)

Overview: Chagee Holdings Limited, with a market cap of $2.95 billion, operates and franchises teahouses under the CHAGEE brand in China and internationally through its subsidiaries.

Operations: Chagee Holdings Limited generates revenue primarily from its restaurants segment, which accounted for CN¥13.27 billion.

Estimated Discount To Fair Value: 46.7%

Chagee Holdings is trading at $15.9, significantly below its estimated fair value of $29.82, suggesting undervaluation based on cash flows. Despite a decline in net income from CNY 640.98 million to CNY 394.21 million year-over-year for Q3 2025, earnings are forecast to grow substantially at 45.1% annually, outpacing the US market's growth rate of 16.1%. Additionally, a special dividend of USD 0.92 per share was announced recently.

CHA Discounted Cash Flow as at Dec 2025

American Healthcare REIT (AHR)

Overview: American Healthcare REIT, Inc., a self-managed REIT based in Maryland, owns and operates a diversified portfolio of clinical healthcare real estate across the U.S., U.K., and the Isle of Man, with a market cap of $9.15 billion.

Operations: The company's revenue segments include Integrated Senior Health Campuses ($1.72 billion), Shop ($307.15 million), OM ($128.91 million), and Triple-net Leased Properties ($42.53 million).

Estimated Discount To Fair Value: 33.7%

American Healthcare REIT is trading at $50.43, well below its estimated fair value of $76.02, indicating significant undervaluation based on cash flows. The company recently raised its financial guidance for 2025, projecting net income between $78 million and $83 million, a substantial increase from previous estimates. Despite shareholder dilution over the past year and interest payments not being fully covered by earnings, revenue is expected to grow faster than the US market average.

AHR Discounted Cash Flow as at Dec 2025

e.l.f. Beauty (ELF)

Overview: e.l.f. Beauty, Inc. is a global beauty company that offers cosmetics and skin care products with a market cap of approximately $4.57 billion.

Operations: The company generates its revenue from personal products, totaling $1.39 billion.

Estimated Discount To Fair Value: 36.8%

e.l.f. Beauty is trading at US$76.66, significantly below its estimated fair value of US$121.34, suggesting undervaluation based on cash flows. Despite a volatile share price and lower profit margins compared to last year, the company's earnings are projected to grow significantly faster than the US market average over the next three years. Recent expansion into Mexico with ULTA Beauty could bolster future revenue streams, aligning with its forecasted revenue growth above market expectations.

ELF Discounted Cash Flow as at Dec 2025

Key Takeaways

Curious About Other Options?

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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