Stock Analysis

Marriott International And 2 Other Stocks That Might Be Trading Below Estimated Value

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As global markets have been marked by volatility and mixed economic signals, investors are increasingly looking for opportunities to identify stocks that may be trading below their estimated value. Amidst the recent market swings and varied economic data, Marriott International and two other companies present potential cases of undervalued stocks worth examining.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Sleep Cycle (OM:SLEEP)SEK40.20SEK80.2649.9%
Cadence Bank (NYSE:CADE)US$29.63US$59.2250%
Guangzhou Tinci Materials Technology (SZSE:002709)CN¥14.53CN¥28.9449.8%
Banca Sistema (BIT:BST)€1.424€2.8550%
COWINTECH (KOSDAQ:A282880)₩14210.00₩28301.4249.8%
Lectra (ENXTPA:LSS)€25.95€51.8650%
Rajesh Exports (NSEI:RAJESHEXPO)₹295.45₹590.7050%
Kraken Robotics (TSXV:PNG)CA$1.27CA$2.5449.9%
Honkarakenne Oyj (HLSE:HONBS)€3.10€6.2050%
NFI Group (TSX:NFI)CA$19.00CA$37.8649.8%

Click here to see the full list of 907 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Marriott International (NasdaqGS:MAR)

Overview: Marriott International, Inc. operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties globally with a market cap of $61.36 billion.

Operations: The company's revenue segments include $3.28 billion from U.S. & Canada and a segment adjustment of $2.28 billion.

Estimated Discount To Fair Value: 26.3%

Marriott International is trading at US$217.97, significantly below its estimated fair value of US$295.94, indicating potential undervaluation based on discounted cash flow analysis. Despite high debt levels, Marriott's revenue growth forecast of 23.6% per year surpasses the US market average of 8.6%. Recent fixed-income offerings totaling nearly $1.5 billion and strategic expansions like the W Hangzhou and Moxy Chongqing bolster its financial stability and growth prospects.

NasdaqGS:MAR Discounted Cash Flow as at Aug 2024

Marvell Technology (NasdaqGS:MRVL)

Overview: Marvell Technology, Inc., along with its subsidiaries, offers data infrastructure semiconductor solutions from the data center core to the network edge and has a market cap of $52.42 billion.

Operations: Marvell Technology's revenue segment includes the design, development, and sale of integrated circuits, generating $5.35 billion.

Estimated Discount To Fair Value: 37.7%

Marvell Technology, trading at US$60.56, is significantly undervalued compared to its estimated fair value of US$97.26 based on discounted cash flow analysis. The company's recent FIPS 140-3 certification for LiquidSecurity HSMs and the launch of the Structera CXL product line are expected to drive substantial revenue growth, forecasted at 16.6% per year, outpacing the US market average. Marvell's earnings are projected to grow by 59.26% annually over the next three years, contributing to its potential profitability and investment appeal.

NasdaqGS:MRVL Discounted Cash Flow as at Aug 2024

Quanta Computer (TWSE:2382)

Overview: Quanta Computer Inc. manufactures and sells notebook computers globally and has a market cap of NT$963.63 billion.

Operations: Revenue segments for Quanta Computer Inc. include notebook computers sold across Asia, the Americas, Europe, and other international markets.

Estimated Discount To Fair Value: 21.1%

Quanta Computer, trading at NT$266.5, is undervalued based on its estimated fair value of NT$337.88 from discounted cash flow analysis. Recent earnings showed significant growth with Q2 sales reaching TWD 309.95 billion and net income at TWD 15.13 billion, up from last year’s figures. The company's partnership with Obsidian Sensors to produce high-resolution thermal imaging cameras for automobiles could drive future revenue growth, which is forecasted to outpace the TW market significantly.

TWSE:2382 Discounted Cash Flow as at Aug 2024

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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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