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As global markets celebrated the prospect of upcoming interest rate cuts, with major indices like the Dow Jones Industrial Average and S&P 500 Index nearing record highs, investors are increasingly looking for opportunities to capitalize on undervalued stocks. In this favorable environment, identifying stocks that are trading below their intrinsic value can offer significant potential for growth.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Kaspi.kz (NasdaqGS:KSPI) | US$125.27 | US$249.46 | 49.8% |
| IMAGICA GROUP (TSE:6879) | ¥505.00 | ¥1005.28 | 49.8% |
| Singapore Technologies Engineering (SGX:S63) | SGD4.48 | SGD8.96 | 50% |
| Heartland Financial USA (NasdaqGS:HTLF) | US$54.97 | US$109.68 | 49.9% |
| Stille (OM:STIL) | SEK222.00 | SEK442.89 | 49.9% |
| Tencent Holdings (SEHK:700) | HK$381.80 | HK$761.31 | 49.8% |
| Frasers Logistics & Commercial Trust (SGX:BUOU) | SGD1.08 | SGD2.16 | 49.9% |
| Bilibili (NasdaqGS:BILI) | US$14.26 | US$28.47 | 49.9% |
| Kempower Oyj (HLSE:KEMPOWR) | €12.73 | €25.41 | 49.9% |
| Distribuidora Internacional de Alimentación (BME:DIA) | €0.013 | €0.026 | 49.9% |
Here's a peek at a few of the choices from the screener.
Cellnex Telecom
Overview: Cellnex Telecom, S.A. operates wireless telecommunication infrastructure across multiple European countries and has a market cap of €24.89 billion.
Operations: Cellnex generates revenue primarily from its wireless telecommunication infrastructure operations across Austria, Denmark, Spain, France, Ireland, Italy, the Netherlands, Poland, Portugal, the United Kingdom, Sweden, and Switzerland.
Estimated Discount To Fair Value: 49.2%
Cellnex Telecom (CLNX) is trading at €35.28, significantly below its estimated fair value of €69.52, suggesting it may be undervalued based on discounted cash flows. Despite reporting a net loss of €418.09 million for H1 2024, the company is in advanced negotiations to divest its Austrian operations and has raised €625 million through a private placement. Revenue growth is expected to outpace the Spanish market at 5.9% annually, with profitability anticipated within three years.
Ryanair Holdings
Overview: Ryanair Holdings plc, with a market cap of €16.75 billion, operates scheduled-passenger airline services in Ireland, the United Kingdom, Spain, Italy, and internationally.
Operations: Ryanair Holdings generates revenue primarily from Ryanair DAC (€14.06 billion) and Other Airlines (€1.51 billion).