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In a week marked by cautious sentiment following the Federal Reserve's rate cut and hawkish outlook, global markets experienced broad declines, with U.S. stocks particularly affected by political uncertainty and interest rate concerns. Despite strong economic data indicating growth, investor confidence was shaken as major indices like the S&P 500 faced their longest streak of more decliners than gainers since 1978. In such an environment, identifying undervalued stocks can be crucial for investors seeking opportunities that may offer potential value when broader market conditions are volatile.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Xiamen Bank (SHSE:601187) | CN¥5.69 | CN¥11.34 | 49.8% |
| Lindab International (OM:LIAB) | SEK226.40 | SEK450.98 | 49.8% |
| Absolent Air Care Group (OM:ABSO) | SEK255.00 | SEK509.76 | 50% |
| T'Way Air (KOSE:A091810) | ₩2505.00 | ₩4994.20 | 49.8% |
| NCSOFT (KOSE:A036570) | ₩205500.00 | ₩409580.73 | 49.8% |
| Pluk Phak Praw Rak Mae (SET:OKJ) | THB15.50 | THB30.86 | 49.8% |
| STIF Société anonyme (ENXTPA:ALSTI) | €24.60 | €49.13 | 49.9% |
| Surgical Science Sweden (OM:SUS) | SEK159.10 | SEK317.10 | 49.8% |
| Nanjing King-Friend Biochemical PharmaceuticalLtd (SHSE:603707) | CN¥13.24 | CN¥26.38 | 49.8% |
| RENK Group (DB:R3NK) | €18.342 | €36.47 | 49.7% |
Here we highlight a subset of our preferred stocks from the screener.
74Software
Overview: 74Software is an infrastructure software publisher operating in France, the rest of Europe, the Americas, and the Asia Pacific with a market cap of €794.04 million.
Operations: The company's revenue segments include License (€8.46 million), Maintenance (€77.04 million), Subscription (€201.19 million), and Services (Excl. Subscription) (€35.49 million).
Estimated Discount To Fair Value: 48.5%
74Software, formerly Axway Software SA, is trading at €27.3, which is 48.5% below its estimated fair value of €52.98, indicating it may be undervalued based on cash flows. Despite past shareholder dilution, the company became profitable this year and forecasts show earnings growth of 20.9% annually—outpacing the French market's 12.3%. Recent revenue growth of €112.4 million in Q3 reflects a total increase of 62.1%, showcasing strong performance relative to peers and industry standards.
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The growth report we've compiled suggests that 74Software's future prospects could be on the up.
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Get an in-depth perspective on 74Software's balance sheet by reading our health report here.
VAT Group
Overview: VAT Group AG, with a market cap of CHF10.32 billion, develops, manufactures, and supplies vacuum valves and related products across Switzerland, Europe, the United States, Asia, and other international markets.