A stock that you can buy at a price below what it is worth is considered undervalued. This is the case for Detroit Legal News and Instructivision. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.
The Detroit Legal News Company (OTCPK:DTRL)
The Detroit Legal News Company provides sheet fed commercial printing services to customers located in southeastern Michigan. Detroit Legal News was formed in 1898 and with the company’s market cap sitting at USD $15.01M, it falls under the small-cap category.
DTRL’s stock is currently floating at around -46% lower than its actual worth of $736.71, at a price of $395, based on my discounted cash flow model. The difference between value and price signals a potential opportunity to buy DTRL shares at a discount. Additionally, DTRL’s PE ratio is trading at 15x against its its media peer level of 18.4x, indicating that relative to its comparable set of companies, you can purchase DTRL’s stock for a lower price right now. DTRL is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities. DTRL has zero debt on its books as well, meaning it has no long term debt obligations to worry about. More on Detroit Legal News here.
Instructivision Inc. (OTCPK:ISTC)
Instructivision, Inc. operates as a New Jersey test preparation company. Instructivision was started in 1981 and has a market cap of USD $35.63K, putting it in the small-cap category.
ISTC’s shares are currently floating at around -86% lower than its actual value of $0.11, at a price of $0.02, based on my discounted cash flow model. The difference between value and price signals a potential opportunity to buy ISTC shares at a discount. Furthermore, ISTC’s PE ratio stands at 4.5x while its software peer level trades at 33.4x, meaning that relative to its comparable company group, you can buy ISTC’s shares at a cheaper price. ISTC is also strong financially, with short-term assets covering liabilities in the near future as well as in the long run. ISTC also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Dig deeper into Instructivision here.
J.Jill, Inc. (NYSE:JILL)
J.Jill, Inc. operates as a specialty retailer of women’s apparel under the J.Jill brand in the United States. The company size now stands at 2604 people and has a market cap of USD $358.73M, putting it in the small-cap stocks category.
JILL’s stock is currently trading at -43% less than its value of $13.64, at a price of $7.81, based on its expected future cash flows. This mismatch indicates a chance to invest in JILL at a discounted price. Moreover, JILL’s PE ratio stands at 11.8x compared to its specialty retail peer level of 17.4x, suggesting that relative to its peers, you can buy JILL’s shares at a cheaper price. JILL also has a healthy balance sheet, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. Continue research on J.Jill here.For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our interactive list of undervalued stocks.