Estimated Discount To Fair Value: 41.5%

Lynas Rare Earths, trading at A$7.75, is valued significantly below its estimated fair value of A$13.24, reflecting potential undervaluation based on cash flows. Despite a decline in production and sales volumes, the company's revenue growth is expected to outpace the Australian market at 27.3% annually. Earnings are forecast to grow considerably by 40.7% per year over the next three years, though recent financial results show reduced profit margins and net income compared to last year.

• In light of our recent growth report, it seems possible that Lynas Rare Earths' financial performance will exceed current levels.

• Take a closer look at Lynas Rare Earths' balance sheet health here in our report.

Treasury Wine Estates

Overview: Treasury Wine Estates Limited is a wine company with operations in Australia, the United States, the United Kingdom, and internationally, and has a market cap of A$9.83 billion.

Operations: The company's revenue is derived from three main segments: Penfolds at A$1.03 billion, Treasury Americas at A$1.03 billion, and Treasury Premium Brands at A$739.80 million.

Estimated Discount To Fair Value: 49.9%

Treasury Wine Estates, trading at A$12.11, is significantly undervalued with an estimated fair value of A$24.19. Despite a drop in net income to A$98.9 million from A$254.5 million last year, earnings are projected to grow substantially at 27.4% annually over the next three years, outpacing the Australian market's expected growth rate of 12.2%. However, profit margins have decreased and dividends remain inadequately covered by earnings or free cash flows.

• Insights from our recent growth report point to a promising forecast for Treasury Wine Estates' business outlook.

• Delve into the full analysis health report here for a deeper understanding of Treasury Wine Estates.

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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.

Companies discussed in this article include ASX:DUR ASX:LYC and ASX:TWE.

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