Lyft And 2 Other Stocks That May Be Trading Below Fair Value Estimates

Simply Wall St

As of early December 2025, U.S. markets have shown resilience with major indexes closing higher amid a rebound in tech and crypto-related stocks. This environment presents opportunities for investors to explore stocks that may be trading below their fair value estimates, such as Lyft and others, by focusing on fundamental strengths and market positioning amidst the current economic landscape.

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

NameCurrent PriceFair Value (Est)Discount (Est)
Webull (BULL)$9.00$17.9249.8%
Warrior Met Coal (HCC)$78.00$154.1549.4%
Super Group (SGHC) (SGHC)$10.93$21.5949.4%
Sotera Health (SHC)$16.93$33.4949.5%
Lyft (LYFT)$22.24$43.6949.1%
Freshworks (FRSH)$12.22$23.7848.6%
First Busey (BUSE)$23.50$45.3448.2%
DexCom (DXCM)$64.45$126.4649%
BioLife Solutions (BLFS)$25.37$49.7249%
Ategrity Specialty Insurance Company Holdings (ASIC)$18.75$37.2949.7%

Click here to see the full list of 214 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Lyft (LYFT)

Overview: Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada, with a market cap of approximately $8.88 billion.

Operations: Lyft's revenue primarily comes from its Internet Information Providers segment, which generated approximately $6.27 billion.

Estimated Discount To Fair Value: 49.1%

Lyft is trading at US$22.24, which is 49.1% below its estimated fair value of US$43.69, suggesting it may be undervalued based on cash flows. While revenue growth is forecast to lag behind the market at 10.5% annually, earnings are expected to grow significantly by 29.5% per year, outpacing the broader market's growth rate of 16%. Recent strategic partnerships in healthcare and entertainment sectors could enhance operational efficiency and expand service reach.

LYFT Discounted Cash Flow as at Dec 2025

Roku (ROKU)

Overview: Roku, Inc. operates a TV streaming platform both in the United States and internationally, with a market cap of approximately $14.52 billion.

Operations: The company's revenue is derived from two main segments: Devices, generating $587.13 million, and Platform, contributing $3.96 billion.

Estimated Discount To Fair Value: 36.5%

Roku is trading at US$98.26, significantly below its estimated fair value of US$154.84, highlighting a potential undervaluation based on cash flows. Despite slower revenue growth forecasts of 10.8% annually compared to the broader market, earnings are projected to grow robustly at 61.09% per year over the next three years. Recent initiatives like collaborations with DoubleVerify and FreeWheel enhance ad fraud protection and monetization capabilities, potentially strengthening Roku's financial position in the competitive streaming landscape.

ROKU Discounted Cash Flow as at Dec 2025

Elastic (ESTC)

Overview: Elastic N.V. is a search AI company that offers software platforms for hybrid, public or private clouds, and multi-cloud environments globally, with a market cap of $7.49 billion.

Operations: The company's revenue is primarily derived from its Software & Programming segment, amounting to $1.61 billion.

Estimated Discount To Fair Value: 46.7%

Elastic, trading at US$72.26, is significantly undervalued compared to its fair value estimate of US$135.60, suggesting strong potential based on cash flows. Despite a forecasted revenue growth of 12.1% annually, below the desired 20%, earnings are expected to grow by 52.46% per year and become profitable within three years. Recent product innovations like the Amazon Bedrock integration and DiskBBQ algorithm enhance Elastic's capabilities in AI observability and vector search efficiency, potentially supporting future cash flow improvements.

ESTC Discounted Cash Flow as at Dec 2025

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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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