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The Australian stock market has recently experienced a downturn, with the ASX200 closing down 1.3% at 7,786 points amid concerns over US tariffs on Aussie steel and aluminium. In such volatile conditions, identifying undervalued stocks can provide opportunities for investors seeking potential value plays. A good stock in this environment is often one that demonstrates strong fundamentals and resilience against broader market pressures, making it potentially attractive despite current challenges.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Acrow (ASX:ACF) | A$1.035 | A$2.00 | 48.3% |
| Domino's Pizza Enterprises (ASX:DMP) | A$26.08 | A$52.05 | 49.9% |
| Champion Iron (ASX:CIA) | A$4.98 | A$9.16 | 45.7% |
| Nido Education (ASX:NDO) | A$0.885 | A$1.62 | 45.5% |
| Charter Hall Group (ASX:CHC) | A$16.20 | A$31.92 | 49.3% |
| SciDev (ASX:SDV) | A$0.43 | A$0.81 | 47.2% |
| Pantoro (ASX:PNR) | A$0.145 | A$0.28 | 48.2% |
| ReadyTech Holdings (ASX:RDY) | A$2.76 | A$5.19 | 46.8% |
| Superloop (ASX:SLC) | A$2.05 | A$3.74 | 45.2% |
| Adriatic Metals (ASX:ADT) | A$4.42 | A$8.23 | 46.3% |
Here's a peek at a few of the choices 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$2.02 billion.
Operations: The company's revenue segments include Travel Services in Asia (A$60.96 million), Europe (A$126.20 million), North America (A$319.90 million), and Australia and New Zealand (A$181.43 million).
Estimated Discount To Fair Value: 10.3%
Corporate Travel Management is trading at A$14.21, slightly below its fair value estimate of A$15.83, suggesting some undervaluation based on cash flows. Despite a decrease in profit margins from 15.3% to 9.2%, earnings are forecasted to grow significantly at over 20% annually, outpacing the broader Australian market's growth rate. The company completed a share buyback worth A$59.2 million and anticipates revenue growth of approximately 10% for fiscal year 2026, reflecting strategic financial management amidst fluctuating earnings performance.
Judo Capital Holdings
Overview: Judo Capital Holdings Limited operates through its subsidiaries to provide a range of banking products and services tailored for small and medium businesses in Australia, with a market capitalization of A$2.05 billion.