3 ASX Value Stocks Trading Up To 39.4% Below Intrinsic Estimates
In This Article:
Over the last 7 days, the Australian market has risen 1.4%, with the Materials sector gaining 3.3% and the Energy sector shrinking by 3.1%. Over the past year, the market is up 12%, and earnings are expected to grow by 14% per annum over the next few years. In this context, identifying undervalued stocks that are trading below their intrinsic estimates can offer significant opportunities for investors looking to capitalize on potential growth in a rising market.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Mader Group (ASX:MAD) | A$5.35 | A$10.53 | 49.2% |
| GTN (ASX:GTN) | A$0.46 | A$0.9 | 48.7% |
| Hansen Technologies (ASX:HSN) | A$4.25 | A$8.22 | 48.3% |
| Ansell (ASX:ANN) | A$29.60 | A$56.97 | 48% |
| IPH (ASX:IPH) | A$6.34 | A$11.77 | 46.1% |
| HMC Capital (ASX:HMC) | A$8.14 | A$15.47 | 47.4% |
| MLG Oz (ASX:MLG) | A$0.64 | A$1.19 | 46.2% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Superloop (ASX:SLC) | A$1.74 | A$3.31 | 47.5% |
| Matrix Composites & Engineering (ASX:MCE) | A$0.29 | A$0.54 | 46.7% |
Let's uncover some gems from our specialized screener.
Cobram Estate Olives
Overview: Cobram Estate Olives Limited is involved in olive farming and the production and marketing of olive oil across Australia, the United States, and internationally, with a market cap of A$698.09 million.
Operations: Cobram Estate Olives generates revenue of A$64.90 million from its USA olive oil operations and A$156 million from its Australian olive oil operations.
Estimated Discount To Fair Value: 39.4%
Cobram Estate Olives appears undervalued based on cash flows, trading at A$1.72, below the estimated fair value of A$2.83. Despite a high level of debt, earnings grew by 139.7% last year and are forecast to grow at 20.15% per year, outpacing the Australian market's expected growth of 13.7%. Recent earnings results showed significant revenue and net income increases, reinforcing its potential as an undervalued stock in Australia.
National Storage REIT
Overview: National Storage REIT (ASX:NSR) is the largest self-storage provider in Australia and New Zealand, operating over 225 centres and serving more than 90,000 residential and commercial customers, with a market cap of A$3.28 billion.
Operations: The company's revenue segment primarily consists of A$354.69 million from the operation and management of storage centres.