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In a week marked by volatility, global markets have been influenced by significant developments, including the European Central Bank's rate cuts and competitive pressures in the AI sector. As investors navigate these turbulent waters, identifying stocks that are priced below their estimated value can be an effective strategy to potentially enhance portfolio returns.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Alltop Technology (TPEX:3526) | NT$264.50 | NT$527.77 | 49.9% |
| Sichuan Injet Electric (SZSE:300820) | CN¥50.58 | CN¥100.70 | 49.8% |
| Gaming Realms (AIM:GMR) | £0.358 | £0.71 | 49.7% |
| GlobalData (AIM:DATA) | £1.78 | £3.55 | 49.9% |
| Zhaojin Mining Industry (SEHK:1818) | HK$12.14 | HK$24.15 | 49.7% |
| Bufab (OM:BUFAB) | SEK467.40 | SEK928.96 | 49.7% |
| GemPharmatech (SHSE:688046) | CN¥13.06 | CN¥25.94 | 49.7% |
| South32 (ASX:S32) | A$3.31 | A$6.70 | 50.6% |
| Prodways Group (ENXTPA:PWG) | €0.576 | €1.15 | 49.8% |
| Gold Royalty (NYSEAM:GROY) | US$1.32 | US$2.63 | 49.9% |
Let's explore several standout options from the results in the screener.
Kaufman & Broad
Overview: Kaufman & Broad S.A. is a property developer and builder based in France with a market capitalization of €688.48 million.
Operations: Kaufman & Broad S.A. generates revenue through its operations as a property developer and builder in France.
Estimated Discount To Fair Value: 19.5%
Kaufman & Broad appears undervalued, trading at €33.2 below its estimated fair value of €41.23, though not by a significant margin. Despite a decline in sales to €1.08 billion and net income to €44.97 million for 2024, earnings are forecasted to grow at 13.63% annually, outpacing the French market's 12.5%. However, its dividend yield of 7.23% is not well covered by earnings, posing sustainability concerns.
Elekta
Overview: Elekta AB (publ) is a medical technology company that provides clinical solutions for treating cancer and brain disorders globally, with a market cap of approximately SEK251.22 billion.
Operations: Elekta's revenue is derived from three primary regions: APAC with SEK6.08 billion, Americas contributing SEK5.41 billion, and Europe, Middle East and Africa (EMEA) generating SEK6.23 billion.
Estimated Discount To Fair Value: 48.8%
Elekta is trading at SEK65.75, significantly below its estimated fair value of SEK128.37, suggesting it may be undervalued based on cash flows. Despite a drop in sales to SEK 8.17 billion and net income to SEK 282 million for the first half of 2024, earnings are projected to grow at over 21% annually, surpassing the Swedish market's growth rate. However, its dividend yield of 1.83% isn't well covered by earnings and it carries high debt levels.