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As global markets navigate a turbulent start to the year, characterized by resilient labor data and persistent inflation concerns, investors are left grappling with uncertainty. Amidst these fluctuations, value stocks have shown relative resilience compared to their growth counterparts, sparking interest in identifying stocks that may be trading below their intrinsic value. In such an environment, a good stock is often one that demonstrates strong fundamentals and potential for growth despite broader market volatility.
Top 10 Undervalued Stocks Based On Cash Flows
Name | Current Price | Fair Value (Est) | Discount (Est) |
Alltop Technology (TPEX:3526) | NT$265.50 | NT$529.34 | 49.8% |
Türkiye Sise Ve Cam Fabrikalari (IBSE:SISE) | TRY39.24 | TRY78.32 | 49.9% |
Beijing Yuanliu Hongyuan Electronic Technology (SHSE:603267) | CN¥35.51 | CN¥70.91 | 49.9% |
Sudarshan Chemical Industries (BSE:506655) | ₹1114.10 | ₹2222.79 | 49.9% |
GemPharmatech (SHSE:688046) | CN¥13.06 | CN¥26.06 | 49.9% |
Ningbo ZhongDa Leader Intelligent Transmission (SZSE:002896) | CN¥43.64 | CN¥87.16 | 49.9% |
Greenworks (Jiangsu) (SZSE:301260) | CN¥13.96 | CN¥27.76 | 49.7% |
Shinko Electric Industries (TSE:6967) | ¥5871.00 | ¥11706.19 | 49.8% |
Mobileye Global (NasdaqGS:MBLY) | US$16.51 | US$32.92 | 49.9% |
Vista Group International (NZSE:VGL) | NZ$3.11 | NZ$6.20 | 49.8% |
Here's a peek at a few of the choices from the screener.
Hyosung Heavy Industries
Overview: Hyosung Heavy Industries Corporation manufactures and sells heavy electrical equipment both in South Korea and internationally, with a market cap of ₩4.37 trillion.
Operations: The company's revenue is primarily derived from its Heavy Industry segment at ₩3.47 trillion and its Construction segment at ₩1.76 trillion.
Estimated Discount To Fair Value: 49.4%
Hyosung Heavy Industries is trading at ₩480,500, significantly below its estimated fair value of ₩950,442.92, indicating potential undervaluation based on cash flows. Despite debt concerns not being fully covered by operating cash flow, the company's earnings are forecast to grow at 39.7% annually over the next three years—outpacing the Korean market's 28.8%. Recent inclusion in the KOSPI 200 Index may enhance visibility among investors.
Kingsoft
Overview: Kingsoft Corporation Limited operates in the entertainment and office software and services sectors across Mainland China, Hong Kong, and internationally, with a market cap of HK$44.51 billion.