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In the wake of recent political shifts and economic policies, global markets have experienced significant fluctuations, with U.S. stocks reaching record highs driven by expectations of growth-friendly fiscal measures. Amid these developments, investors are increasingly focused on identifying undervalued opportunities that might benefit from the current economic landscape. In this context, understanding intrinsic value becomes crucial as it helps investors pinpoint stocks that may be trading below their true worth in a volatile market environment.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| UMB Financial (NasdaqGS:UMBF) | US$122.86 | US$245.13 | 49.9% |
| Cambi (OB:CAMBI) | NOK15.10 | NOK30.14 | 49.9% |
| Ramssol Group Berhad (KLSE:RAMSSOL) | MYR0.695 | MYR1.39 | 49.8% |
| TBC Bank Group (LSE:TBCG) | £31.35 | £62.68 | 50% |
| Afya (NasdaqGS:AFYA) | US$16.16 | US$32.25 | 49.9% |
| Decisive Dividend (TSXV:DE) | CA$6.05 | CA$12.06 | 49.8% |
| XPEL (NasdaqCM:XPEL) | US$45.46 | US$90.91 | 50% |
| Grupo Traxión. de (BMV:TRAXION A) | MX$19.39 | MX$38.77 | 50% |
| S-Pool (TSE:2471) | ¥344.00 | ¥686.71 | 49.9% |
| BuySell TechnologiesLtd (TSE:7685) | ¥3890.00 | ¥7757.36 | 49.9% |
Below we spotlight a couple of our favorites from our exclusive screener.
Atea
Overview: Atea ASA offers IT infrastructure and related solutions to businesses and public sector organizations in the Nordic countries and Baltic regions, with a market cap of NOK15.20 billion.
Operations: The company's revenue segments include NOK8.28 billion from Norway, NOK12.44 billion from Sweden, NOK7.37 billion from Denmark, NOK3.62 billion from Finland, and NOK1.76 billion from the Baltics, along with contributions of NOK9.20 billion from Group Shared Services and a deduction of NOK9.30 billion for Group Cost.
Estimated Discount To Fair Value: 44.2%
Atea ASA is trading at NOK 136, significantly below its estimated fair value of NOK 243.84, indicating it may be undervalued based on cash flows. Recent earnings showed a slight increase in net income to NOK 192 million for Q3 2024. Atea's revenue and profit growth forecasts exceed the Norwegian market averages, with an expected annual profit growth of over 21%. The company also announced a substantial frame agreement with Tiera Oy in Finland worth up to EUR 1.16 billion over four years.
Emmi
Overview: Emmi AG, with a market cap of CHF4.38 billion, develops, produces, and markets a variety of dairy and fresh products across Switzerland and internationally in regions including Europe, the Americas, Africa, and Asia/Pacific.