Stock Analysis

3 US Stocks Estimated To Be Trading At Discounts Of Over 16.7%

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As the U.S. stock market experiences fluctuations amid ongoing discussions about inflation and interest rate adjustments, investors are keeping a close watch on economic indicators that could influence future Federal Reserve decisions. With major indices like the S&P 500 and Nasdaq Composite recently reaching record highs, identifying stocks that may be trading at a discount becomes particularly appealing for those looking to capitalize on potential value opportunities in this volatile environment. Understanding what constitutes an undervalued stock is crucial; it often involves assessing a company's fundamentals against its current market price, especially during periods of heightened market activity or regulatory developments.

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

NameCurrent PriceFair Value (Est)Discount (Est)
NBT Bancorp (NasdaqGS:NBTB)$50.26$99.9349.7%
UMB Financial (NasdaqGS:UMBF)$123.67$243.2549.2%
Hims & Hers Health (NYSE:HIMS)$32.63$64.7049.6%
West Bancorporation (NasdaqGS:WTBA)$23.32$46.3849.7%
Business First Bancshares (NasdaqGS:BFST)$28.19$54.9348.7%
Equity Bancshares (NYSE:EQBK)$47.26$92.0748.7%
U.S. Physical Therapy (NYSE:USPH)$96.50$187.0348.4%
Vasta Platform (NasdaqGS:VSTA)$2.18$4.3149.4%
First Advantage (NasdaqGS:FA)$20.00$39.0048.7%
Marcus & Millichap (NYSE:MMI)$41.51$81.0448.8%

Click here to see the full list of 190 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Intapp (NasdaqGS:INTA)

Overview: Intapp, Inc., through its subsidiary Integration Appliance, Inc., offers AI-powered solutions across the United States, the United Kingdom, and internationally with a market cap of $5.14 billion.

Operations: The company generates revenue from its Software & Programming segment, amounting to $447.75 million.

Estimated Discount To Fair Value: 16.7%

Intapp is trading at US$67.06, below its estimated fair value of US$80.51, suggesting it may be undervalued based on cash flows. The company reported Q1 2025 revenue of US$118.81 million and a reduced net loss compared to the previous year. Recent client wins with firms like Milsted Langdon enhance Intapp's collaboration solutions' appeal, potentially supporting future cash flow improvements despite past shareholder dilution and slower anticipated revenue growth than industry leaders.

NasdaqGS:INTA Discounted Cash Flow as at Dec 2024

Patria Investments (NasdaqGS:PAX)

Overview: Patria Investments Limited is a private market investment firm specializing in Latin American investments, with a market cap of approximately $1.84 billion.

Operations: The company generates revenue primarily through its Asset Management segment, which amounted to $328.72 million.

Estimated Discount To Fair Value: 23%

Patria Investments is trading at US$12.55, below its estimated fair value of US$16.30, indicating potential undervaluation based on cash flows. Despite a significant drop in net income from US$18.5 million to US$1.5 million year-over-year for Q3 2024, earnings are projected to grow substantially over the next three years. However, the dividend yield of 7.84% is not well covered by earnings or free cash flows, and recent shareholder dilution remains a concern.

NasdaqGS:PAX Discounted Cash Flow as at Dec 2024

Eli Lilly (NYSE:LLY)

Overview: Eli Lilly and Company is a global pharmaceutical company focused on discovering, developing, and marketing human pharmaceuticals, with a market cap of approximately $744.40 billion.

Operations: The company generates revenue of $40.86 billion from the discovery, development, manufacturing, marketing, and sales of pharmaceutical products worldwide.

Estimated Discount To Fair Value: 39.7%

Eli Lilly is trading at US$803.58, significantly below its estimated fair value of US$1,332.14, suggesting potential undervaluation based on cash flows. The company's earnings grew 67.8% over the past year and are expected to increase by 29.28% annually over the next three years, outpacing the broader U.S market growth rate of 15.5%. Recent strategic initiatives include a US$3 billion expansion in Wisconsin and a new US$15 billion share repurchase program without expiration date limits.

NYSE:LLY Discounted Cash Flow as at Dec 2024

Summing It All Up

Interested In Other Possibilities?

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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