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ASX Stocks Estimated To Be Trading Below Intrinsic Value In January 2025

In This Article:

As the Australian market continues to adjust to the new Trump administration, the ASX200 has climbed higher for the third consecutive week, closing up 0.36% at 8,408 points. Amidst this upward momentum and sector-specific performances, identifying stocks that are trading below their intrinsic value can offer potential opportunities for investors looking to capitalize on undervalued assets in a fluctuating market environment.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

Data#3 (ASX:DTL)

A$6.85

A$12.30

44.3%

SKS Technologies Group (ASX:SKS)

A$2.15

A$3.80

43.4%

Mader Group (ASX:MAD)

A$6.09

A$11.91

48.9%

Atlas Arteria (ASX:ALX)

A$4.99

A$9.71

48.6%

MLG Oz (ASX:MLG)

A$0.605

A$1.16

47.9%

Charter Hall Group (ASX:CHC)

A$15.31

A$29.16

47.5%

ReadyTech Holdings (ASX:RDY)

A$3.15

A$6.20

49.2%

Gold Road Resources (ASX:GOR)

A$2.47

A$4.63

46.7%

Vault Minerals (ASX:VAU)

A$0.365

A$0.68

46%

Syrah Resources (ASX:SYR)

A$0.23

A$0.42

45.2%

Click here to see the full list of 46 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Life360

Overview: Life360, Inc. operates a technology platform for locating people, pets, and things across North America, Europe, the Middle East, Africa, and internationally with a market cap of A$5.64 billion.

Operations: The company generates revenue primarily from its Software & Programming segment, amounting to $342.92 million.

Estimated Discount To Fair Value: 24.6%

Life360 is trading at A$24.93, significantly below its estimated fair value of A$33.08, indicating potential undervaluation based on cash flows. Despite recent insider selling and revised revenue guidance due to lower hardware sales, the company maintains strong core subscription growth above 25% year-over-year. With earnings turning positive in Q3 2024 and expected profitability within three years, Life360's forecasted earnings growth of 50.97% annually positions it for robust future performance relative to the market.

ASX:360 Discounted Cash Flow as at Jan 2025
ASX:360 Discounted Cash Flow as at Jan 2025

Charter Hall Group

Overview: Charter Hall Group is a leading Australian fully integrated property investment and funds management group with a market cap of A$7.24 billion.

Operations: The company's revenue is derived from three main segments: Funds Management (A$448.60 million), Property Investments (A$322.80 million), and Development Investments (A$73.30 million).