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As global markets continue to reach record highs, driven by domestic policy shifts and geopolitical developments, investors are increasingly focused on finding value amidst the bullish trends. In such an environment, identifying stocks that are trading below their intrinsic value can offer opportunities for potential growth and stability.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Shandong Bailong Chuangyuan Bio-Tech (SHSE:605016) | CN¥16.64 | CN¥33.16 | 49.8% |
| Pan African Resources (AIM:PAF) | £0.3735 | £0.75 | 49.9% |
| Sudarshan Chemical Industries (BSE:506655) | ₹1116.10 | ₹2222.42 | 49.8% |
| Iguatemi (BOVESPA:IGTI3) | R$2.25 | R$4.49 | 49.8% |
| Elekta (OM:EKTA B) | SEK61.50 | SEK122.95 | 50% |
| Adtraction Group (OM:ADTR) | SEK38.40 | SEK76.45 | 49.8% |
| Pluk Phak Praw Rak Mae (SET:OKJ) | THB15.50 | THB30.86 | 49.8% |
| Privia Health Group (NasdaqGS:PRVA) | US$21.66 | US$43.17 | 49.8% |
| Energy One (ASX:EOL) | A$5.30 | A$10.55 | 49.8% |
| Sands China (SEHK:1928) | HK$20.40 | HK$40.58 | 49.7% |
Below we spotlight a couple of our favorites from our exclusive screener.
Pharma Mar
Overview: Pharma Mar, S.A. is a biopharmaceutical company focused on the research, development, production, and commercialization of oncology treatments across various countries including Spain, Italy, Germany, Ireland, France, the rest of the European Union, and the United States; it has a market cap of approximately €1.43 billion.
Operations: The company's revenue from oncology amounted to €154.75 million.
Estimated Discount To Fair Value: 49.2%
Pharma Mar appears significantly undervalued, trading at €81.65, which is 49.2% below its estimated fair value of €160.79 based on discounted cash flow analysis. Despite recent volatility in share price and a decline in net profit margin to 0.4%, the company shows strong growth potential with forecasted revenue growth of 28% annually and earnings expected to increase by over 56% per year, outpacing the Spanish market averages.
Fujian Apex SoftwareLTD
Overview: Fujian Apex Software Co., LTD is a professional platform software and information service provider in China with a market cap of CN¥8.44 billion.
Operations: The company generates revenue of CN¥707.34 million from its Application Software Service Industry segment in China.
Estimated Discount To Fair Value: 15.1%
Fujian Apex SoftwareLTD is trading at CNY 41.11, below its estimated fair value of CNY 48.45, suggesting it may be undervalued based on discounted cash flow analysis. Despite a decline in sales and net income over the past nine months, earnings are expected to grow by 24.1% annually over the next three years, outpacing revenue growth of 19%. However, its dividend yield of 2.68% is not well covered by earnings or free cash flows.