As the U.S. stock market navigates a landscape marked by mixed index performances and anticipation of interest rate decisions, investors are keenly observing sectors that could benefit from potential economic shifts. In this environment, identifying stocks trading below their intrinsic value can offer opportunities for those looking to capitalize on underappreciated assets, particularly as market conditions evolve.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Phibro Animal Health (PAHC) | $39.62 | $77.67 | 49% |
| Peapack-Gladstone Financial (PGC) | $29.29 | $56.54 | 48.2% |
| Northwest Bancshares (NWBI) | $12.52 | $24.41 | 48.7% |
| Niagen Bioscience (NAGE) | $9.61 | $18.68 | 48.6% |
| Metropolitan Bank Holding (MCB) | $77.45 | $150.26 | 48.5% |
| McGraw Hill (MH) | $14.83 | $28.60 | 48.1% |
| Investar Holding (ISTR) | $22.67 | $44.88 | 49.5% |
| Horizon Bancorp (HBNC) | $16.25 | $31.81 | 48.9% |
| Glaukos (GKOS) | $82.76 | $161.26 | 48.7% |
| AGNC Investment (AGNC) | $10.18 | $20.18 | 49.6% |
Let's take a closer look at a couple of our picks from the screened companies.
Grab Holdings (GRAB)
Overview: Grab Holdings Limited operates as a provider of superapps across Southeast Asia, including countries such as Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam with a market cap of approximately $24.46 billion.
Operations: The company's revenue segments include Mobility at $1.13 billion, Deliveries at $1.64 billion, and Financial Services at $297 million.
Estimated Discount To Fair Value: 24.9%
Grab Holdings is trading at US$6, below its estimated fair value of US$7.99, suggesting potential undervaluation based on cash flows. The company recently became profitable, reporting a net income of US$35 million for Q2 2025. Revenue growth is projected at 15.2% annually, outpacing the broader US market's forecasted growth rate. However, its return on equity is expected to remain low at 9.6% in three years despite strong earnings growth projections of 37.5% annually.
- Our comprehensive growth report raises the possibility that Grab Holdings is poised for substantial financial growth.
- Take a closer look at Grab Holdings' balance sheet health here in our report.
Eli Lilly (LLY)
Overview: Eli Lilly and Company discovers, develops, and markets human pharmaceuticals globally, with a market cap of $678.14 billion.
Operations: The company generates $53.26 billion from its pharmaceutical products through discovery, development, manufacturing, marketing, and sales across various regions including the United States, Europe, China, and Japan.
Estimated Discount To Fair Value: 34.7%
Eli Lilly's stock is trading at US$755.39, significantly below its fair value estimate of US$1156.46, indicating potential undervaluation based on cash flows. Despite having a high level of debt, the company's earnings are projected to grow significantly at 21.17% annually over the next three years and surpass the broader US market growth rate of 15.4%. Recent collaborations in machine learning and drug development could enhance its innovative capabilities and future revenue streams.
- Our growth report here indicates Eli Lilly may be poised for an improving outlook.
- Delve into the full analysis health report here for a deeper understanding of Eli Lilly.
Sea (SE)
Overview: Sea Limited operates as a consumer internet company through its subsidiaries, serving markets in Southeast Asia, Latin America, the rest of Asia, and internationally, with a market cap of $116.07 billion.
Operations: The company's revenue segments include digital entertainment at $3.22 billion, e-commerce at $7.54 billion, and digital financial services at $1.20 billion.
Estimated Discount To Fair Value: 32.7%
Sea Limited's stock, trading at US$196.05, is significantly undervalued compared to its estimated fair value of US$291.35. The company reported substantial revenue growth for the first half of 2025, reaching US$10.1 billion from US$7.54 billion a year prior, with net income soaring to US$809 million from US$58.2 million. Forecasts suggest Sea's earnings will grow considerably faster than the broader market over the next three years, highlighting its potential as an undervalued asset based on cash flows.
- Our expertly prepared growth report on Sea implies its future financial outlook may be stronger than recent results.
- Get an in-depth perspective on Sea's balance sheet by reading our health report here.
Summing It All Up
- Explore the 191 names from our Undervalued US Stocks Based On Cash Flows screener here.
- Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
- Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.
Looking For Alternative Opportunities?
- 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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