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3 ASX Stocks Estimated To Be Trading At Discounts Of 20.8% To 37.8%

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The market has climbed 2.5% in the last 7 days, with a gain of 4.5%, and over the past 12 months, it is up 11%. Earnings are forecast to grow by 13% annually, making it an opportune time to identify stocks trading below their intrinsic value. In this article, we will explore three ASX stocks currently estimated to be trading at discounts ranging from 20.8% to 37.8%, presenting potential opportunities for investors looking to capitalize on undervalued assets in a growing market.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

LaserBond (ASX:LBL)

A$0.71

A$1.37

48.1%

Elders (ASX:ELD)

A$9.33

A$18.11

48.5%

Regal Partners (ASX:RPL)

A$3.40

A$6.63

48.7%

Shine Justice (ASX:SHJ)

A$0.72

A$1.35

46.7%

Megaport (ASX:MP1)

A$11.21

A$21.52

47.9%

Domino's Pizza Enterprises (ASX:DMP)

A$33.76

A$63.86

47.1%

hipages Group Holdings (ASX:HPG)

A$1.16

A$2.31

49.7%

Treasury Wine Estates (ASX:TWE)

A$12.23

A$24.19

49.4%

Millennium Services Group (ASX:MIL)

A$1.145

A$2.24

48.9%

Airtasker (ASX:ART)

A$0.27

A$0.52

48.4%

Click here to see the full list of 37 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Life360

Overview: Life360, Inc. operates a technology platform for locating people, pets, and things across North America, Europe, the Middle East, Africa, and internationally with a market cap of A$4.03 billion.

Operations: The company's revenue primarily comes from its Software & Programming segment, which generated $328.68 million.

Estimated Discount To Fair Value: 37.8%

Life360 is trading at A$18.12, significantly below its estimated fair value of A$29.15, indicating it may be undervalued based on cash flows. Despite recent shareholder dilution and substantial insider selling, the company’s revenue is forecast to grow 15.7% per year, outpacing the Australian market's 5.3%. Recent partnerships with Arity and Placer.ai are expected to generate incremental revenue in 2024 and beyond, supporting Life360's pursuit of profitability within three years.

ASX:360 Discounted Cash Flow as at Aug 2024
ASX:360 Discounted Cash Flow as at Aug 2024

IPD Group

Overview: IPD Group Limited, with a market cap of A$474.51 million, distributes electrical equipment in Australia.

Operations: The company generates revenue from two main segments: A$215.98 million from its Products Division and A$20.79 million from its Services Division.

Estimated Discount To Fair Value: 25.4%