3 ASX Stocks That Might Be Trading Below Estimated Value

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As the ASX200 closed up 0.85% at 8,393 points, the Australian market is navigating a landscape of cautious optimism amid expectations that interest rate cuts might be delayed until May. With sectors like Energy and Utilities showing strong performance and Information Technology lagging behind, investors are keenly assessing opportunities for stocks that may be trading below their estimated value. Identifying undervalued stocks requires a careful analysis of market conditions and company fundamentals to uncover potential investments that could offer value in the current economic climate.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

Telix Pharmaceuticals (ASX:TLX)

A$22.58

A$44.20

48.9%

MLG Oz (ASX:MLG)

A$0.60

A$1.14

47.2%

Ingenia Communities Group (ASX:INA)

A$5.00

A$9.33

46.4%

Millennium Services Group (ASX:MIL)

A$1.145

A$2.24

48.9%

Genesis Minerals (ASX:GMD)

A$2.50

A$4.74

47.2%

Vault Minerals (ASX:VAU)

A$0.345

A$0.64

46.3%

Ai-Media Technologies (ASX:AIM)

A$0.705

A$1.40

49.7%

Energy One (ASX:EOL)

A$5.51

A$10.72

48.6%

Credit Clear (ASX:CCR)

A$0.365

A$0.71

48.6%

FINEOS Corporation Holdings (ASX:FCL)

A$2.05

A$3.76

45.5%

Click here to see the full list of 39 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Codan

Overview: Codan Limited provides technology solutions for United Nations organizations, security and military groups, government departments, individuals, and small-scale miners with a market cap of A$2.88 billion.

Operations: The company's revenue segments include Communications, generating A$326.91 million, and Metal Detection, contributing A$219.85 million.

Estimated Discount To Fair Value: 40.8%

Codan is trading at A$15.91, significantly below its estimated fair value of A$26.86, indicating it may be undervalued based on cash flows. The company has demonstrated strong earnings growth of 20.1% over the past year and is forecast to continue growing earnings at 17.4% annually, outpacing the Australian market's average growth rate. Recently added to the S&P/ASX 200 Index, Codan's revenue growth also exceeds market expectations at 10.2% per year.

ASX:CDA Discounted Cash Flow as at Nov 2024
ASX:CDA Discounted Cash Flow as at Nov 2024

Ingenia Communities Group

Overview: Ingenia Communities Group (ASX:INA) is a prominent operator, owner, and developer of residential communities and holiday accommodations with a market cap of A$2.04 billion.