Companies, such as Arbor Realty Trust, trading at a market price below their true values are considered to be undervalued. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.
Arbor Realty Trust, Inc. (NYSE:ABR)
Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets. Started in 2003, and currently run by Ivan Kaufman, the company now has 445 employees and with the stock’s market cap sitting at USD $896.21M, it comes under the small-cap category.
ABR’s shares are currently floating at around -44% lower than its intrinsic value of $17.54, at a price tag of US$9.89, based on my discounted cash flow model. This discrepancy signals a potential opportunity to buy ABR shares at a low price. In addition to this, ABR’s PE ratio is currently around 7.83x against its its Mortgage REITs peer level of, 9.9x indicating that relative to other stocks in the industry, you can buy ABR for a cheaper price. ABR is also a financially robust company, with current assets covering liabilities in the near term and over the long run. Finally, its debt relative to equity is 309.81%, which has been dropping over the past couple of years signifying ABR’s ability to pay down its debt. More detail on Arbor Realty Trust here.
Nevada Gold & Casinos, Inc. (AMEX:UWN)
Nevada Gold & Casinos, Inc., a gaming company, finances, develops, owns, and operates gaming properties and projects. Started in 1977, and currently lead by Michael Shaunnessy, the company now has 1,280 employees and has a market cap of USD $36.22M, putting it in the small-cap stocks category.
UWN’s shares are currently hovering at around -38% lower than its actual worth of $3.49, at a price of US$2.15, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. In addition to this, UWN’s PE ratio is trading at around 17.15x while its Hospitality peer level trades at, 23.21x implying that relative to its comparable company group, we can invest in UWN at a lower price. UWN is also in good financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. Finally, its debt relative to equity is 26.97%, which has been declining for the last couple of years signifying its ability to pay down its debt. Continue research on Nevada Gold & Casinos here.
VSE Corporation (NASDAQ:VSEC)
VSE Corporation operates as a diversified services and supply company in the United States. Started in 1959, and headed by CEO Maurice Gauthier, the company currently employs 2,306 people and with the stock’s market cap sitting at USD $537.20M, it comes under the small-cap category.
VSEC’s stock is currently trading at -63% below its actual level of $133.04, at a price of US$49.37, according to my discounted cash flow model. This discrepancy gives us a chance to invest in VSEC at a discount. What’s even more appeal is that VSEC’s PE ratio stands at around 13.78x against its its Commercial Services peer level of, 18.34x meaning that relative to other stocks in the industry, you can buy VSEC for a cheaper price. VSEC is also a financially robust company, with current assets covering liabilities in the near term and over the long run. The stock’s debt-to-equity ratio of 60.19% has been reducing over time, indicating VSEC’s capability to pay down its debt. Dig deeper into VSE here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.