3 Stocks Investors May Be Undervaluing By Up To 43.5%

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The United States market has shown a positive trend, climbing 1.6% in the last week and rising 12% over the past year, with earnings projected to grow by 14% annually. In this environment, identifying stocks that are potentially undervalued can offer investors opportunities to capitalize on future growth while benefiting from current market conditions.

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

NameCurrent PriceFair Value (Est)Discount (Est)
Quaker Chemical (NYSE:KWR)$105.85$210.3749.7%
KBR (NYSE:KBR)$55.45$108.6849%
Horizon Bancorp (NasdaqGS:HBNC)$15.69$30.6948.9%
Flowco Holdings (NYSE:FLOC)$19.17$37.9149.4%
Curbline Properties (NYSE:CURB)$23.62$47.1749.9%
Constellation Brands (NYSE:STZ)$192.91$385.3749.9%
Array Technologies (NasdaqGM:ARRY)$7.265$14.2148.9%
FinWise Bancorp (NasdaqGM:FINW)$14.85$29.2249.2%
TransMedics Group (NasdaqGM:TMDX)$122.10$238.9448.9%
Mobileye Global (NasdaqGS:MBLY)$15.72$31.0849.4%

Click here to see the full list of 170 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener.

Grab Holdings (NasdaqGS:GRAB)

Overview: Grab Holdings Limited operates as a superapp provider in Southeast Asia, offering a range of services including transportation, food delivery, and digital payments across countries such as Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam; it has a market cap of approximately $20.72 billion.

Operations: The company's revenue segments include Mobility at $1.08 billion, Deliveries at $1.56 billion, and Financial Services at $273 million.

Estimated Discount To Fair Value: 37.5%

Grab Holdings is trading at US$5.08, below its estimated fair value of US$8.13, presenting a potential undervaluation based on cash flows. The company recently reported a net income of US$10 million for Q1 2025, turning profitable from a previous net loss. While expected revenue growth is moderate at 14.1% annually, earnings are forecasted to grow significantly at over 40% per year, suggesting strong future cash flow potential despite low return on equity forecasts.

NasdaqGS:GRAB Discounted Cash Flow as at May 2025

Sarepta Therapeutics (NasdaqGS:SRPT)

Overview: Sarepta Therapeutics, Inc. is a commercial-stage biopharmaceutical company specializing in RNA-targeted therapeutics and gene therapies for rare diseases, with a market cap of approximately $3.58 billion.

Operations: The company's revenue primarily comes from its activities in discovering, developing, manufacturing, and delivering therapies, totaling $2.23 billion.

Estimated Discount To Fair Value: 43.5%

Sarepta Therapeutics is trading at US$37.94, significantly below its estimated fair value of US$67.11, indicating potential undervaluation based on cash flows. Despite a volatile share price and revised revenue guidance for 2025 between US$2.3 billion to US$2.6 billion, the company shows strong growth prospects with earnings expected to increase by 48% annually and profitability anticipated within three years, driven by advancements in their gene therapy portfolio including ELEVIDYS for Duchenne muscular dystrophy.

NasdaqGS:SRPT Discounted Cash Flow as at May 2025

Jabil (NYSE:JBL)

Overview: Jabil Inc. offers manufacturing services and solutions globally, with a market cap of approximately $18.01 billion.

Operations: Jabil's revenue segments include Electronics Manufacturing Services at $21.98 billion and Diversified Manufacturing Services at $14.79 billion, reflecting its global reach in providing comprehensive manufacturing solutions.

Estimated Discount To Fair Value: 26%

Jabil is trading at US$167.44, below its estimated fair value of US$226.34, pointing to potential undervaluation based on cash flows. While earnings are forecast to grow significantly at 30.3% annually, profit margins have decreased from last year due to large one-off items affecting results. The company's high debt level is a concern, but strategic initiatives like the launch of advanced transceivers and board appointments bolster its growth trajectory in technology sectors.

NYSE:JBL Discounted Cash Flow as at May 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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