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The Australian market has experienced a relatively stable day, with the ASX200 closing at 7,760 points and sectors such as Health Care showing positive movement while others like Staples lagged. In this context of fluctuating sector performances and strategic shifts among companies, identifying stocks that may be trading below their estimated value can present potential opportunities for investors looking to capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Acrow (ASX:ACF) | A$1.05 | A$2.04 | 48.5% |
| GenusPlus Group (ASX:GNP) | A$2.63 | A$5.15 | 48.9% |
| Medical Developments International (ASX:MVP) | A$0.485 | A$0.89 | 45.5% |
| Amaero (ASX:3DA) | A$0.23 | A$0.45 | 48.9% |
| Genetic Signatures (ASX:GSS) | A$0.44 | A$0.84 | 47.6% |
| Pantoro (ASX:PNR) | A$2.72 | A$5.36 | 49.2% |
| Nuix (ASX:NXL) | A$2.37 | A$4.30 | 44.9% |
| Integral Diagnostics (ASX:IDX) | A$2.25 | A$4.03 | 44.2% |
| Electro Optic Systems Holdings (ASX:EOS) | A$1.20 | A$2.38 | 49.6% |
| Select Harvests (ASX:SHV) | A$5.41 | A$9.62 | 43.8% |
Here we highlight a subset of our preferred stocks from the screener.
Corporate Travel Management
Overview: Corporate Travel Management Limited is a travel management solutions company that oversees the procurement and delivery of travel services across Australia and New Zealand, North America, Asia, and Europe, with a market cap of A$1.77 billion.
Operations: The company generates revenue through its travel services across various regions, with A$60.96 million from Asia, A$126.20 million from Europe, A$319.90 million from North America, and A$181.43 million from Australia and New Zealand.
Estimated Discount To Fair Value: 23.6%
Corporate Travel Management is trading at A$12.57, 23.6% below its estimated fair value of A$16.46, making it potentially undervalued based on cash flows. Despite a drop in profit margins from 15.3% to 9.2%, earnings are projected to grow significantly at 21.3% annually, outpacing the Australian market's growth rate of 11.7%. Recent leadership changes aim to enhance operational efficiency and client growth as Jo Sully succeeds Greg McCarthy as CEO for Australia & New Zealand by June 2025.
Nick Scali
Overview: Nick Scali Limited, with a market cap of A$1.44 billion, is involved in the sourcing and retailing of household furniture and related accessories across Australia, the United Kingdom, and New Zealand.