3 Stocks That Might Be Trading Below Fair Value By Up To 34.9%

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Global markets have recently experienced significant movements, with U.S. stocks reaching record highs fueled by China's robust stimulus measures and optimism around artificial intelligence. Despite these gains, some sectors remain underappreciated, presenting potential opportunities for discerning investors. In such a dynamic market environment, identifying undervalued stocks can be crucial for long-term investment success. This article explores three stocks that might currently be trading below their fair value by up to 34.9%, offering a potentially attractive entry point for those looking to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

Name

Current Price

Fair Value (Est)

Discount (Est)

Associated Banc-Corp (NYSE:ASB)

US$20.65

US$41.24

49.9%

Pilot (TSE:7846)

¥4452.00

¥8866.91

49.8%

Zhejiang Great Shengda PackagingLtd (SHSE:603687)

CN¥7.11

CN¥14.16

49.8%

T'Way Air (KOSE:A091810)

?2855.00

?5697.59

49.9%

Sejin Heavy Industries (KOSE:A075580)

?7430.00

?14860.00

50%

Ta-Yuan Cogeneration (TPEX:8931)

NT$49.20

NT$98.22

49.9%

ChromaDex (NasdaqCM:CDXC)

US$3.56

US$7.10

49.9%

Videndum (LSE:VID)

£2.50

£4.98

49.8%

Vogo (ENXTPA:ALVGO)

€3.19

€6.36

49.9%

Distribuidora Internacional de Alimentación (BME:DIA)

€0.0128

€0.026

50%

Click here to see the full list of 950 stocks from our Undervalued Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

BYD

Overview: BYD Company Limited, with a market cap of HK$925.89 billion, operates in the automobiles and batteries sectors across China, Hong Kong, Macau, Taiwan, and internationally.

Operations: BYD's revenue segments include CN¥507.52 billion from Automobiles and Related Products and CN¥154.49 billion from Mobile Handset Components, Assembly Service, and Other Products.

Estimated Discount To Fair Value: 34.9%

BYD is trading at 34.9% below its estimated fair value of HK$459.67, suggesting it may be undervalued based on cash flows. Recent earnings grew by 36.2%, with a forecasted annual profit growth of 15.47%, outpacing the Hong Kong market's 12.2%. The company reported significant production and sales increases year-to-date, alongside strategic partnerships and expansions, enhancing its revenue potential and reinforcing its strong financial position.

SEHK:1211 Discounted Cash Flow as at Oct 2024
SEHK:1211 Discounted Cash Flow as at Oct 2024

CSC Financial

Overview: CSC Financial Co., Ltd. and its subsidiaries offer investment banking services both in Mainland China and internationally, with a market cap of HK$204.10 billion.