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Estimated Discount To Fair Value: 22.8%

ACWA Power is trading at SAR 435.2, over 20% below its estimated fair value of SAR 563.85, indicating potential undervaluation based on cash flows. Despite interest payments not being well covered by earnings and a low forecasted return on equity of 13.2%, the company's earnings are expected to grow significantly by more than 22% annually, surpassing the Saudi market's growth rate. Recent board changes may also influence strategic direction positively.

• In light of our recent growth report, it seems possible that ACWA Power's financial performance will exceed current levels.

• Take a closer look at ACWA Power's balance sheet health here in our report.

Lotes

Overview: Lotes Co., Ltd designs, manufactures, and sells electronic interconnect and hardware components in Taiwan, Mainland China, and internationally with a market cap of NT$204.25 billion.

Operations: The company generates revenue primarily from its Electronic Components & Parts segment, which amounts to NT$28.36 billion.

Estimated Discount To Fair Value: 33.6%

Lotes is trading at NT$1,815, significantly below its estimated fair value of NT$2,733.75, suggesting potential undervaluation based on cash flows. The company's earnings grew by 31.8% over the past year and are forecast to grow at 20.3% annually, outpacing the Taiwan market's growth rate. Recent earnings reports show strong performance with third-quarter sales reaching NT$8.07 billion and net income rising to NT$2.06 billion from last year’s figures.

• Our expertly prepared growth report on Lotes implies its future financial outlook may be stronger than recent results.

• Click here and access our complete balance sheet health report to understand the dynamics of Lotes.

Summing It All Up

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ENXTPA:SPIE SASE:2082 and TWSE:3533.

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