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As global markets grapple with uncertainty stemming from tariff announcements and mixed economic indicators, investors are closely monitoring the implications for growth and inflation. The recent volatility in major indices, alongside robust earnings reports from many companies, highlights the importance of identifying stocks that may be undervalued amidst broader market fluctuations. In such an environment, finding stocks priced below their estimated value can offer potential opportunities for investors seeking to capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| DIP (TSE:2379) | ¥2246.00 | ¥4524.66 | 50.4% |
| Atour Lifestyle Holdings (NasdaqGS:ATAT) | US$29.57 | US$58.94 | 49.8% |
| Biotage (OM:BIOT) | SEK138.70 | SEK273.61 | 49.3% |
| People & Technology (KOSDAQ:A137400) | ₩41600.00 | ₩81814.39 | 49.2% |
| Solum (KOSE:A248070) | ₩17680.00 | ₩34856.64 | 49.3% |
| Guangdong Fenghua Advanced Technology (Holding) (SZSE:000636) | CN¥15.25 | CN¥30.01 | 49.2% |
| Canatu Oyj (HLSE:CANATU) | €12.50 | €24.79 | 49.6% |
| RENK Group (DB:R3NK) | €24.94 | €49.37 | 49.5% |
| Marcus & Millichap (NYSE:MMI) | US$37.27 | US$73.76 | 49.5% |
| Kyndryl Holdings (NYSE:KD) | US$41.54 | US$82.14 | 49.4% |
We're going to check out a few of the best picks from our screener tool.
AGC
Overview: AGC Inc. is a global manufacturer and seller of glass, electronics, chemicals, automotive products, and ceramics with a market cap of ¥922.14 billion.
Operations: The company's revenue is primarily derived from its Chemicals segment at ¥593.62 billion, followed by Automotive at ¥498.79 billion, Architectural Glass at ¥437.99 billion, Electronics at ¥364.55 billion, and Life Science at ¥141.22 billion.
Estimated Discount To Fair Value: 38.2%
AGC is trading at 38.2% below its estimated fair value, with a discounted cash flow analysis revealing it to be highly undervalued by over 20%. Despite a dividend yield of 4.8%, concerns arise as it's not well covered by earnings or free cash flows. Revenue growth is forecasted at 4.9% annually, outpacing the JP market's average, while profitability is expected within three years, supported by recent guidance projecting significant sales and profit figures for 2025.
PSI Software
Overview: PSI Software SE develops and integrates software solutions to optimize energy and material flows for utilities and industries globally, with a market cap of €424.37 million.