Three Companies Estimated Below Intrinsic Value In October 2024

As global markets navigate the complexities of rising oil prices due to Middle East tensions and unexpected job gains in the U.S., investors are keenly observing how these factors influence stock valuations. Amidst this volatility, identifying stocks that are estimated to be below their intrinsic value can offer potential opportunities for those looking to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Vestel Beyaz Esya Sanayi ve Ticaret (IBSE:VESBE)	TRY17.49	TRY34.95	50%
Titagarh Rail Systems (NSEI:TITAGARH)	₹1081.90	₹2151.81	49.7%
Litium (OM:LITI)	SEK8.14	SEK16.26	49.9%
Somec (BIT:SOM)	€14.05	€27.96	49.7%
EVERTEC (NYSE:EVTC)	US$33.05	US$66.00	49.9%
Little Green Pharma (ASX:LGP)	A$0.085	A$0.17	49.8%
Zalando (XTRA:ZAL)	€29.65	€58.98	49.7%
SysGroup (AIM:SYS)	£0.325	£0.65	49.9%
Vertex Pharmaceuticals (NasdaqGS:VRTX)	US$467.97	US$934.59	49.9%
Money Forward (TSE:3994)	¥5914.00	¥11785.83	49.8%

Click here to see the full list of 930 stocks from our Undervalued Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Okta (NasdaqGS:OKTA)

Overview: Okta, Inc. operates as an identity partner both in the United States and internationally, with a market cap of approximately $12.44 billion.

Operations: The company's revenue is primarily derived from its Internet Software & Services segment, which generated $2.45 billion.

Estimated Discount To Fair Value: 41.2%

Okta's recent financial performance shows a revenue increase to US$646 million for Q2 2024, with a net income of US$29 million, marking a turnaround from the previous year's loss. Despite shareholder dilution over the past year, Okta is trading at 41.2% below its estimated fair value of US$130.09 based on discounted cash flow analysis. The company's expected annual profit growth is above market average, and analysts forecast further stock price appreciation by 38.5%.

• The growth report we've compiled suggests that Okta's future prospects could be on the up.
• Click here to discover the nuances of Okta with our detailed financial health report.

Truist Financial (NYSE:TFC)

Overview: Truist Financial Corporation is a financial services company offering banking and trust services in the Southeastern and Mid-Atlantic United States, with a market cap of approximately $56.42 billion.

Operations: The company's revenue segments include banking and trust services in the Southeastern and Mid-Atlantic United States, with a segment adjustment of $24.12 billion and Treasury & Corporate (Ot&C) at -$9.88 billion.

Estimated Discount To Fair Value: 42.3%

Truist Financial is trading at US$42.63, significantly below its estimated fair value of US$73.87, suggesting undervaluation based on discounted cash flow analysis. Despite current challenges with dividend coverage and a low return on equity forecast of 9.3%, revenue growth is expected to outpace the US market at 12% annually. The company anticipates becoming profitable within three years, with earnings projected to grow by 58.19% per year, indicating potential for recovery and long-term value creation.

• The analysis detailed in our Truist Financial growth report hints at robust future financial performance.
• Take a closer look at Truist Financial's balance sheet health here in our report.

Viking Holdings (NYSE:VIK)

Overview: Viking Holdings Ltd operates in passenger shipping and other forms of passenger transport across North America, the United Kingdom, and internationally, with a market cap of approximately $15.93 billion.

Operations: The company's revenue segments include Viking Ocean, generating $2.04 billion, and Viking River, contributing $2.44 billion.

Estimated Discount To Fair Value: 49.3%

Viking Holdings is trading at $37.87, well below its estimated fair value of $74.7, highlighting significant undervaluation based on discounted cash flow analysis. Despite a recent net loss and diluted earnings per share decline, revenue grew by 22.2% last year and is forecast to grow at 14.6% annually—faster than the US market rate of 8.8%. The company plans to become profitable within three years, with earnings expected to grow substantially each year.

• Our growth report here indicates Viking Holdings may be poised for an improving outlook.
• Get an in-depth perspective on Viking Holdings' balance sheet by reading our health report here.

Seize The Opportunity

• Discover the full array of 930 Undervalued Stocks Based On Cash Flows right here.
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Curious About Other Options?

• 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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