Undervalued companies, such as Computime Group and Build King Holdings, are those that trade at a price below their actual values. There’s a few ways you can measure the value of a company – you can forecast how much money it will make in the future and base your valuation off of this, or you can look around at its peers of similar size and industry to roughly estimate what it should be worth. Below, I’ve created a list of companies that compare favourably in all criteria based on their most recent financial data, making them potentially good investments.

Computime Group Limited (SEHK:320)

Computime Group Limited, an investment holding company, engages in the research and development, design, manufacture, and trading of electronic control products in the Americas, Europe, and Asia. Founded in 1974, and now run by King Owyang, the company employs 6,000 people and has a market cap of HKD HK$1.06B, putting it in the small-cap stocks category.

320’s shares are currently floating at around -67% under its actual value of $3.8, at a price of HK$1.26, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. In addition to this, 320’s PE ratio stands at around 7.64x compared to its Electronic peer level of, 10.41x implying that relative to its comparable company group, we can purchase 320’s shares for cheaper. 320 is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities.

More on Computime Group here.

Build King Holdings Limited (SEHK:240)

Build King Holdings Limited, an investment holding company, engages in the construction and civil engineering business in the People’s Republic of China and the Middle East. The company employs 2075 people and has a market cap of HKD HK$819.64M, putting it in the small-cap category.

240’s shares are currently floating at around -71% beneath its real value of $2.26, at a price tag of HK$0.66, according to my discounted cash flow model. This discrepancy gives us a chance to invest in 240 at a discount. Furthermore, 240’s PE ratio stands at around 4.45x relative to its Construction peer level of, 13.98x suggesting that relative to its comparable set of companies, we can buy 240’s stock at a cheaper price today. 240 is also strong financially, with current assets covering liabilities in the near term and over the long run.

Continue research on Build King Holdings here.

China Starch Holdings Limited (SEHK:3838)

China Starch Holdings Limited, an investment holding company, manufactures and sells cornstarch, lysine, starch-based sweetener, modified starch, and ancillary corn-based and corn-refined products. Formed in 2006, and run by CEO Shijun Gao, the company currently employs 2,133 people and has a market cap of HKD HK$1.80B, putting it in the small-cap group.