3 SGX Stocks Trading Up To 49.9% Below Intrinsic Value Estimates

In This Article:

The Singapore market is currently focused on bolstering its cybersecurity infrastructure, particularly in response to the growing threat posed by quantum computing. The Monetary Authority of Singapore's recent initiatives in Quantum Key Distribution and post-quantum cryptography highlight the importance of technological resilience in today's financial landscape. In this environment, identifying undervalued stocks trading below their intrinsic value can offer significant opportunities for investors looking to capitalize on potential growth while navigating these evolving market conditions.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name

Current Price

Fair Value (Est)

Discount (Est)

LHN (SGX:41O)

SGD0.325

SGD0.41

21%

Singapore Technologies Engineering (SGX:S63)

SGD4.37

SGD8.31

47.4%

17LIVE Group (SGX:LVR)

SGD0.855

SGD1.69

49.5%

Winking Studios (Catalist:WKS)

SGD0.295

SGD0.55

46.7%

Seatrium (SGX:5E2)

SGD1.41

SGD2.81

49.9%

Digital Core REIT (SGX:DCRU)

US$0.585

US$0.84

30.3%

Click here to see the full list of 6 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Seatrium

Overview: Seatrium Limited offers engineering solutions to the offshore, marine, and energy industries with a market cap of SGD4.83 billion.

Operations: The company's revenue segments include Ship Chartering at SGD24.71 million and Rigs & Floaters, Repairs & Upgrades, Offshore Platforms, and Specialised Shipbuilding at SGD8.39 billion.

Estimated Discount To Fair Value: 49.9%

Seatrium Limited's recent earnings report shows significant improvement, with net income of SGD 35.97 million for H1 2024 compared to a net loss of SGD 264.37 million a year ago. The company has secured multiple high-value contracts, including an SGD 11 billion deal with Petrobras and another significant contract in the Netherlands. Despite regulatory investigations, Seatrium's strong cash flows and substantial project pipeline suggest it is undervalued based on discounted cash flow analysis.

SGX:5E2 Discounted Cash Flow as at Aug 2024
SGX:5E2 Discounted Cash Flow as at Aug 2024

Digital Core REIT

Overview: Digital Core REIT (SGX: DCRU) is a leading pure-play data centre REIT listed in Singapore, sponsored by Digital Realty, with a market cap of $760.97 million.

Operations: The company's revenue primarily comes from its commercial REIT segment, amounting to $70.76 million.

Estimated Discount To Fair Value: 30.3%