October 2024 ASX Stocks Priced Below Estimated Value
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The Australian market has shown a robust performance, increasing by 1.1% over the last week and 18% over the past year, with earnings projected to grow by 12% annually in the coming years. In this thriving environment, identifying stocks priced below their estimated value can offer potential opportunities for investors seeking to capitalize on market efficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| EZZ Life Science Holdings (ASX:EZZ) | A$4.43 | A$8.78 | 49.5% |
| DroneShield (ASX:DRO) | A$1.395 | A$2.68 | 48% |
| Duratec (ASX:DUR) | A$1.395 | A$2.59 | 46.2% |
| Genesis Minerals (ASX:GMD) | A$2.02 | A$3.93 | 48.6% |
| Charter Hall Group (ASX:CHC) | A$15.96 | A$31.40 | 49.2% |
| Ingenia Communities Group (ASX:INA) | A$5.04 | A$9.40 | 46.4% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| IperionX (ASX:IPX) | A$3.49 | A$6.67 | 47.6% |
| Superloop (ASX:SLC) | A$1.725 | A$3.31 | 47.9% |
| Mineral Resources (ASX:MIN) | A$51.73 | A$96.17 | 46.2% |
Below we spotlight a couple of our favorites from our exclusive screener.
Data#3
Overview: Data#3 Limited provides information technology solutions and services across Australia, Fiji, and the Pacific Islands, with a market cap of A$1.15 billion.
Operations: The company's revenue primarily stems from its role as a Value-Added IT Reseller and IT Solutions Provider, generating A$805.75 million.
Estimated Discount To Fair Value: 44.7%
Data#3 Limited appears undervalued based on cash flows, trading at A$7.44, which is significantly below its estimated fair value of A$13.46. Despite a modest forecasted annual earnings growth of 11.08%, its revenue growth is expected to outpace the Australian market significantly at 33.3% per year. Recent earnings showed an increase in net income to A$43.31 million from the previous year, indicating solid financial performance despite limited dividend coverage by earnings or free cash flow.
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According our earnings growth report, there's an indication that Data#3 might be ready to expand.
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Click here and access our complete balance sheet health report to understand the dynamics of Data#3.
Kina Securities
Overview: Kina Securities Limited operates in Papua New Guinea, offering commercial banking, financial services, fund administration, investment management, and share brokerage services with a market cap of A$389.84 million.
Operations: Kina Securities Limited generates revenue from its key segments, with PGK 391.80 million from Banking & Finance (Including Corporate) and PGK 39.65 million from Wealth Management.