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As global markets grapple with economic uncertainty and inflation fears, compounded by trade policy concerns and persistent inflation, investors are increasingly cautious. Major indices have faced declines, highlighting the challenges posed by new tariffs and a potential economic slowdown. In such an environment, identifying undervalued stocks can be crucial for investors seeking opportunities to capitalize on discrepancies between market prices and intrinsic values.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Fujikura (TSE:5803) | ¥5342.00 | ¥10643.06 | 49.8% |
| Insource (TSE:6200) | ¥796.00 | ¥1580.36 | 49.6% |
| STI (KOSDAQ:A039440) | ₩22050.00 | ₩44056.68 | 50% |
| Food & Life Companies (TSE:3563) | ¥4461.00 | ¥8864.66 | 49.7% |
| Sangfor Technologies (SZSE:300454) | CN¥102.30 | CN¥202.16 | 49.4% |
| IONOS Group (XTRA:IOS) | €25.95 | €51.45 | 49.6% |
| Fodelia Oyj (HLSE:FODELIA) | €7.02 | €13.91 | 49.5% |
| W5 Solutions (OM:W5) | SEK71.90 | SEK142.79 | 49.6% |
| CJ CGV (KOSE:A079160) | ₩4485.00 | ₩8940.27 | 49.8% |
| Galderma Group (SWX:GALD) | CHF95.43 | CHF190.57 | 49.9% |
Let's explore several standout options from the results in the screener.
Quálitas Controladora. de
Overview: Quálitas Controladora, S.A.B. de C.V. operates in the automobile insurance sector through its subsidiaries, providing insurance, coinsurance, and reinsurance services across Mexico, El Salvador, Costa Rica, Peru, and the United States with a market cap of MX$70.51 billion.
Operations: Quálitas Controladora's revenue is primarily derived from its insurance, coinsurance, and reinsurance services in the automobile sector across multiple countries including Mexico, El Salvador, Costa Rica, Peru, and the United States.
Estimated Discount To Fair Value: 17%
Quálitas Controladora's recent earnings results show strong growth, with net income rising to MX$5.12 billion for 2024 from MX$3.78 billion the previous year. The stock is currently trading at about 17% below its estimated fair value of MX$215.58, suggesting it may be undervalued based on cash flows. However, its dividend yield of 4.47% is not well covered by free cash flows, which could be a concern for investors prioritizing dividend sustainability.
Shanghai MicroPort Endovascular MedTech
Overview: Shanghai MicroPort Endovascular MedTech Co., Ltd. operates in the medical technology sector, focusing on the development and manufacturing of endovascular devices, with a market cap of CN¥11.26 billion.