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Amidst recent market fluctuations, with Australian shares poised for a potential bounceback following one of the toughest trading days of 2025, investors are eyeing opportunities on the ASX. In such volatile times, identifying stocks that are perceived to be undervalued can be particularly appealing, offering potential value against current market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Acrow (ASX:ACF) | A$1.09 | A$2.01 | 45.8% |
| Nido Education (ASX:NDO) | A$0.795 | A$1.57 | 49.3% |
| Nick Scali (ASX:NCK) | A$15.69 | A$27.51 | 43% |
| Environmental Group (ASX:EGL) | A$0.245 | A$0.46 | 46.9% |
| PolyNovo (ASX:PNV) | A$1.165 | A$2.12 | 44.9% |
| Charter Hall Group (ASX:CHC) | A$16.78 | A$31.89 | 47.4% |
| Genetic Signatures (ASX:GSS) | A$0.475 | A$0.88 | 45.8% |
| SciDev (ASX:SDV) | A$0.445 | A$0.82 | 45.5% |
| ReadyTech Holdings (ASX:RDY) | A$2.60 | A$5.13 | 49.3% |
| Polymetals Resources (ASX:POL) | A$0.87 | A$1.69 | 48.6% |
Below we spotlight a couple of our favorites from our exclusive screener.
Integral Diagnostics
Overview: Integral Diagnostics Limited is a healthcare services company that provides diagnostic imaging services to medical professionals and patients in Australia and New Zealand, with a market cap of A$843.54 million.
Operations: Revenue for Integral Diagnostics is primarily generated from the operation of diagnostic imaging facilities, amounting to A$491.32 million.
Estimated Discount To Fair Value: 42.8%
Integral Diagnostics (IDX) is trading at A$2.27, significantly below its estimated fair value of A$3.97, suggesting it may be undervalued based on cash flows. Despite a recent net loss of A$0.396 million for H1 2025, IDX's earnings are expected to grow substantially over the next three years at 40.2% per year, outpacing the Australian market's growth rate of 11.8%. However, interest payments are not well covered by earnings and private equity interest remains high following a drop in market value to A$837 million after recent results.
James Hardie Industries
Overview: James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for construction applications across the United States, Australia, Europe, New Zealand, and the Philippines with a market cap of A$15.89 billion.
Operations: The company's revenue segments are comprised of North America Fiber Cement at $2.88 billion, Asia Pacific Fiber Cement at $543.30 million, and Europe Building Products at $488 million.