Unlock stock picks and a broker-level newsfeed that powers Wall Street.

3 TSX Stocks That May Be Trading Below Intrinsic Value By Up To 45.2%

In This Article:

The Canadian market has been experiencing sideways consolidation in recent months, which may act as a corrective force amidst policy uncertainty and trade worries that keep volatility elevated. In this environment, identifying stocks that are potentially trading below their intrinsic value can be an effective strategy for investors looking to fortify their portfolios against short-term market fluctuations.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name

Current Price

Fair Value (Est)

Discount (Est)

Peyto Exploration & Development (TSX:PEY)

CA$15.24

CA$28.72

46.9%

Docebo (TSX:DCBO)

CA$48.05

CA$87.19

44.9%

Decisive Dividend (TSXV:DE)

CA$6.10

CA$11.33

46.2%

Major Drilling Group International (TSX:MDI)

CA$8.07

CA$14.72

45.2%

Groupe Dynamite (TSX:GRGD)

CA$15.20

CA$27.53

44.8%

Thunderbird Entertainment Group (TSXV:TBRD)

CA$1.85

CA$3.33

44.4%

Electrovaya (TSX:ELVA)

CA$3.02

CA$5.83

48.2%

Quisitive Technology Solutions (TSXV:QUIS)

CA$0.565

CA$1.06

46.7%

NuVista Energy (TSX:NVA)

CA$11.18

CA$20.00

44.1%

Condor Energies (TSX:CDR)

CA$1.76

CA$3.45

49%

Click here to see the full list of 28 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Major Drilling Group International

Overview: Major Drilling Group International Inc. offers contract drilling services to mining and mineral exploration companies across multiple continents, with a market cap of CA$672.76 million.

Operations: The company's revenue from its contract drilling services amounts to CA$680.16 million.

Estimated Discount To Fair Value: 45.2%

Major Drilling Group International is trading at CA$8.07, significantly below its estimated fair value of CA$14.72, indicating potential undervaluation based on cash flows. Forecasted earnings growth of 47.4% per year surpasses the Canadian market's growth rate of 15.8%. Despite a recent decline in profit margins from 9.8% to 6.1%, the company is implementing strategic leadership changes to enhance operational efficiency and support organic growth, reinforcing its position in the specialized drilling market.

TSX:MDI Discounted Cash Flow as at Mar 2025
TSX:MDI Discounted Cash Flow as at Mar 2025

Propel Holdings

Overview: Propel Holdings Inc. is a financial technology company with a market capitalization of CA$1.13 billion.

Operations: The company generates revenue of $416.43 million by providing lending-related services to borrowers, banks, and other institutions.