3 Companies Estimated To Be Trading Below Intrinsic Value

The United States market has shown robust performance, with a 3.9% increase over the last week and a 12% rise in the past year, while earnings are projected to grow by 14% annually. In such an environment, identifying stocks that are estimated to be trading below their intrinsic value can offer potential opportunities for investors seeking to capitalize on undervalued assets.

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

Click here to see the full list of 173 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

First Solar (NasdaqGS:FSLR)

Overview: First Solar, Inc. is a solar technology company that offers photovoltaic solar energy solutions across the United States, France, India, Chile, and other international markets with a market cap of approximately $15.09 billion.

Operations: The company's revenue is primarily derived from the design, manufacture, and sale of CdTe solar modules, totaling approximately $4.25 billion.

Estimated Discount To Fair Value: 46.2%

First Solar is trading at US$156.21, significantly below its estimated fair value of US$290.41, suggesting it could be undervalued based on cash flows. Despite a recent downward revision in earnings guidance for 2025, the company still forecasts robust revenue growth of 11.7% annually and significant earnings growth of 22.5%, outpacing the broader U.S. market averages. Its strategic investment in domestic manufacturing further strengthens its competitive position in the solar industry.

• Our growth report here indicates First Solar may be poised for an improving outlook.
• Click here and access our complete balance sheet health report to understand the dynamics of First Solar.

Okta (NasdaqGS:OKTA)

Overview: Okta, Inc. is an identity management company operating both in the United States and internationally, with a market capitalization of approximately $20.74 billion.

Operations: The company's revenue primarily comes from its Internet Software & Services segment, generating $2.61 billion.

Estimated Discount To Fair Value: 11.1%

Okta's stock, priced at US$124.17, trades below its estimated fair value of US$139.60, indicating potential undervaluation based on cash flows. The company has recently become profitable with a net income of US$28 million for the year ended January 31, 2025. Despite revenue growth forecasts being modest at 8.8% annually, Okta's earnings are projected to grow significantly faster than the market average over the next three years.

• In light of our recent growth report, it seems possible that Okta's financial performance will exceed current levels.
• Click to explore a detailed breakdown of our findings in Okta's balance sheet health report.

International Paper (NYSE:IP)

Overview: International Paper Company produces and sells renewable fiber-based packaging and pulp products across North America, Latin America, Europe, and North Africa with a market cap of $23.37 billion.

Operations: The company's revenue segments include Global Cellulose Fibers, which generated $2.73 billion.

Estimated Discount To Fair Value: 42.1%

International Paper's stock, at US$47.91, is trading significantly below its estimated fair value of US$82.69, suggesting it may be undervalued based on cash flows. Although earnings have been impacted by large one-off items leading to a net loss of US$105 million in Q1 2025, the company anticipates substantial earnings growth over the next three years. Recent strategic reorganizations and expansions aim to enhance operational efficiency and service delivery amidst ongoing financial challenges.

• Our expertly prepared growth report on International Paper implies its future financial outlook may be stronger than recent results.
• Click here to discover the nuances of International Paper with our detailed financial health report.

Next Steps

• Click here to access our complete index of 173 Undervalued US Stocks Based On Cash Flows.
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Contemplating Other Strategies?

• 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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