3 ASX Stocks Estimated To Be Trading Up To 39.8% Below Intrinsic Value
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The Australian market has remained flat over the last week but is up 16% over the past year, with earnings expected to grow by 12% annually in the coming years. In this context, identifying stocks that are trading below their intrinsic value can present attractive opportunities for investors seeking to capitalize on potential future growth.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Mader Group (ASX:MAD) | A$5.37 | A$10.43 | 48.5% |
| MLG Oz (ASX:MLG) | A$0.64 | A$1.16 | 44.8% |
| Charter Hall Group (ASX:CHC) | A$15.74 | A$31.43 | 49.9% |
| Ingenia Communities Group (ASX:INA) | A$4.99 | A$9.43 | 47.1% |
| MedAdvisor (ASX:MDR) | A$0.43 | A$0.85 | 49.4% |
| IperionX (ASX:IPX) | A$3.45 | A$6.80 | 49.3% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| IDP Education (ASX:IEL) | A$15.03 | A$27.70 | 45.7% |
| Superloop (ASX:SLC) | A$1.78 | A$3.31 | 46.3% |
| Mineral Resources (ASX:MIN) | A$47.94 | A$94.51 | 49.3% |
Below we spotlight a couple of our favorites from our exclusive screener.
Cettire
Overview: Cettire Limited operates as an online luxury goods retailer in Australia, the United States, and internationally, with a market cap of A$762.48 million.
Operations: The company's revenue is primarily generated from online retail sales, amounting to A$742.26 million.
Estimated Discount To Fair Value: 32%
Cettire is trading at A$2, significantly below its estimated fair value of A$2.94, suggesting potential undervaluation based on cash flows. Although earnings are expected to grow 29% annually, profit margins have declined from 3.8% to 1.4%. Recent board appointments bring experienced leadership amid revenue growth forecasts surpassing the Australian market average. However, Cettire's share price remains highly volatile, and net income has decreased year-on-year despite strong sales growth.
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Our growth report here indicates Cettire may be poised for an improving outlook.
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Click to explore a detailed breakdown of our findings in Cettire's balance sheet health report.
Flight Centre Travel Group
Overview: Flight Centre Travel Group Limited offers travel retailing services to both leisure and corporate clients across various regions including Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and globally; it has a market cap of A$4.84 billion.
Operations: The company's revenue is derived from two main segments: Leisure, contributing A$1.35 billion, and Corporate, generating A$1.11 billion.
Estimated Discount To Fair Value: 14.9%
Flight Centre Travel Group is trading at A$21.92, below its fair value estimate of A$25.74, indicating potential undervaluation based on cash flows. The company reported a significant increase in net income to A$139 million, supported by a strong cash position and ongoing growth strategies including acquisitions. While earnings are projected to grow 19.6% annually, outpacing the Australian market average, revenue growth is slower at 8%. Dividend sustainability remains uncertain due to an unstable track record.