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As we approach January 2025, global markets are experiencing mixed signals with U.S. consumer confidence declining and European stocks seeing modest gains during the holiday-shortened week. Amid these fluctuations, identifying undervalued stocks becomes crucial as investors seek opportunities that may offer potential value in a market characterized by both growth and uncertainty.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Lundin Gold (TSX:LUG) | CA$31.92 | CA$63.81 | 50% |
| Wasion Holdings (SEHK:3393) | HK$7.05 | HK$14.08 | 49.9% |
| Tourmaline Oil (TSX:TOU) | CA$67.37 | CA$134.34 | 49.9% |
| Globetronics Technology Bhd (KLSE:GTRONIC) | MYR0.59 | MYR1.18 | 49.8% |
| Bank BTPN Syariah (IDX:BTPS) | IDR935.00 | IDR1869.73 | 50% |
| Strike CompanyLimited (TSE:6196) | ¥3655.00 | ¥7284.35 | 49.8% |
| Camden National (NasdaqGS:CAC) | US$42.25 | US$84.44 | 50% |
| S Foods (TSE:2292) | ¥2737.00 | ¥5472.35 | 50% |
| Emporiki Eisagogiki Aftokiniton Ditrohon kai Mihanon Thalassis Societe Anonyme (ATSE:MOTO) | €2.76 | €5.50 | 49.8% |
| Lea Bank (OB:LEA) | NOK10.40 | NOK20.78 | 49.9% |
Let's review some notable picks from our screened stocks.
TSE
Overview: TSE Co., Ltd offers semiconductor test solutions both in South Korea and internationally, with a market cap of approximately ₩445.44 billion.
Operations: TSE Co., Ltd's revenue is primarily derived from providing semiconductor test solutions in both domestic and international markets.
Estimated Discount To Fair Value: 49.3%
Trading at ₩43,500, TSE is significantly undervalued based on discounted cash flow analysis, with a fair value estimate of ₩85,866.04. While its return on equity is forecast to be low at 12.9% in three years, earnings are expected to grow substantially by 38.2% annually, outpacing the Korean market's growth rate of 28.7%. Despite slower revenue growth at 12.6%, it surpasses the broader market's pace of 9%.
C&C International
Overview: C&C International Co., Ltd is involved in the research, development, manufacture, and sale of cosmetics in Korea with a market cap of ₩446.37 billion.
Operations: The company generates revenue from its Personal Products segment, amounting to ₩289.76 million.
Estimated Discount To Fair Value: 42.7%
C&C International, trading at ₩45,000, is significantly undervalued with a fair value estimate of ₩78,470.47. Despite recent share price volatility, its earnings grew by 62.4% last year and are projected to increase by 25% annually. Revenue is expected to grow at 24.6% per year, outpacing the Korean market's growth rate of 9%. The company's return on equity is forecasted to reach a robust 21.5%, indicating strong future profitability potential.