3 Undervalued Stocks Trading Up To 35.6% Below Intrinsic Value Estimates

Simply Wall St

As the U.S. stock market experiences volatility due to recent tariff announcements and a weaker-than-expected jobs report, investors are on the lookout for opportunities amidst uncertainty. In such an environment, identifying undervalued stocks trading below their intrinsic value can offer potential for long-term gains, making them a focal point for those seeking resilience in their investment strategies.

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

NameCurrent PriceFair Value (Est)Discount (Est)
WesBanco (WSBC)$29.51$58.2749.4%
Similarweb (SMWB)$7.91$15.5849.2%
RXO (RXO)$15.00$29.8349.7%
Origin Bancorp (OBK)$35.32$69.8249.4%
NBT Bancorp (NBTB)$40.56$79.8649.2%
Inspire Medical Systems (INSP)$126.10$250.8349.7%
Horizon Bancorp (HBNC)$15.01$29.9249.8%
FB Financial (FBK)$47.47$93.9049.4%
Definitive Healthcare (DH)$3.74$7.3849.3%
Camden National (CAC)$36.60$72.9149.8%

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

Below we spotlight a couple of our favorites from our exclusive screener.

Modine Manufacturing (MOD)

Overview: Modine Manufacturing Company specializes in designing, engineering, testing, manufacturing, and selling mission-critical thermal solutions across several countries including the United States, Canada, Italy, Hungary, the United Kingdom, and China with a market cap of $7.02 billion.

Operations: The company's revenue is derived from its Climate Solutions segment, which generated $1.48 billion, and its Performance Technologies segment, contributing $1.14 billion.

Estimated Discount To Fair Value: 29.0%

Modine Manufacturing is currently trading at a significant discount to its estimated fair value, with earnings expected to grow substantially over the next three years. Recent earnings reports show solid performance, with net income rising to US$51.2 million for Q1 2025. The company has raised its fiscal 2026 guidance and announced a US$100 million investment in expanding U.S. manufacturing capacity for data center cooling products, reflecting strong future growth prospects driven by strategic expansion initiatives.

MOD Discounted Cash Flow as at Aug 2025

Reddit (RDDT)

Overview: Reddit, Inc. operates a digital community platform both in the United States and internationally, with a market cap of $35.31 billion.

Operations: Reddit generates its revenue primarily from the Internet Information Providers segment, which amounts to $1.67 billion.

Estimated Discount To Fair Value: 35.6%

Reddit, Inc. is trading at a notable discount to its estimated fair value of US$292.99, with current share prices at US$188.64. The company reported strong Q2 2025 earnings with net income of US$89.3 million compared to a loss last year, indicating a robust turnaround in profitability. Earnings are forecasted to grow significantly at 36% annually over the next three years, outpacing the broader U.S. market's growth expectations and highlighting Reddit's potential for future cash flow generation.

RDDT Discounted Cash Flow as at Aug 2025

Workiva (WK)

Overview: Workiva Inc., along with its subsidiaries, offers cloud-based reporting solutions across the Americas and internationally, with a market cap of approximately $4.72 billion.

Operations: The company generates revenue from its data processing segment, amounting to $806.98 million.

Estimated Discount To Fair Value: 14.2%

Workiva Inc. is trading at US$84.30, below its estimated fair value of US$98.24, indicating it may be undervalued based on cash flows. Despite recent losses, revenue for Q2 2025 increased to US$215.19 million from the previous year, with forecasts suggesting profitability within three years and revenue growth of 15% annually—faster than the overall U.S. market rate of 9.2%. Recent insider selling and executive changes may warrant cautious optimism for potential investors.

WK Discounted Cash Flow as at Aug 2025

Key Takeaways

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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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