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As global markets navigate the early days of President Trump's administration, U.S. stocks are reaching record highs driven by optimism over potential trade negotiations and AI investments. Amid this buoyant market atmosphere, identifying stocks that are trading below their fair value can present unique opportunities for investors seeking to capitalize on potential mispricings in the market.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Türkiye Sise Ve Cam Fabrikalari (IBSE:SISE) | TRY38.86 | TRY77.57 | 49.9% |
| Fevertree Drinks (AIM:FEVR) | £6.58 | £13.12 | 49.9% |
| Atea (OB:ATEA) | NOK139.40 | NOK278.37 | 49.9% |
| East Side Games Group (TSX:EAGR) | CA$0.57 | CA$1.14 | 50% |
| Kinaxis (TSX:KXS) | CA$170.04 | CA$339.70 | 49.9% |
| J Trust (TSE:8508) | ¥521.00 | ¥1039.92 | 49.9% |
| GemPharmatech (SHSE:688046) | CN¥13.06 | CN¥26.03 | 49.8% |
| IDP Education (ASX:IEL) | A$13.17 | A$26.31 | 50% |
| Allied Blenders and Distillers (NSEI:ABDL) | ₹394.40 | ₹787.12 | 49.9% |
| Cavotec (OM:CCC) | SEK20.00 | SEK39.88 | 49.8% |
Here we highlight a subset of our preferred stocks from the screener.
PostNL
Overview: PostNL N.V. offers postal and logistics services to businesses and consumers in the Netherlands, Europe, and internationally, with a market cap of €482.03 million.
Operations: The company's revenue segments include postal and logistics services provided to businesses and consumers across the Netherlands, Europe, and internationally.
Estimated Discount To Fair Value: 47.1%
PostNL is trading at €0.96, significantly below its estimated fair value of €1.82, presenting an undervaluation based on discounted cash flow analysis. Despite a high debt level and a dividend yield of 6.25% not covered by earnings, the company's earnings are forecast to grow substantially at 44.9% annually over the next three years, outpacing the Dutch market's growth rate of 14.5%. Recent guidance anticipates normalized EBIT around €53 million for 2024 amidst past losses.
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The growth report we've compiled suggests that PostNL's future prospects could be on the up.
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Take a closer look at PostNL's balance sheet health here in our report.
Solum
Overview: Solum Co., Ltd. is a company that produces and sells power modules, digital tuners, and electronic shelf labels both in South Korea and globally, with a market cap of approximately ₩912.18 billion.
Operations: The company's revenue is derived from its ICT Business, which generated ₩432.21 million, and its Electronic Components Division, contributing ₩1.14 billion.
Estimated Discount To Fair Value: 49.6%