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The Australian stock market has recently experienced a positive upswing, with the ASX200 closing at a seven-week high of 8,429 points. This rise comes amid optimism fueled by Donald Trump's "Stargate" plan for AI investment and favorable trade outcomes, particularly benefiting sectors like IT and Industrials. In this environment, identifying stocks that may be trading below their estimated value can offer 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) |
| Data#3 (ASX:DTL) | A$6.73 | A$12.32 | 45.4% |
| Mader Group (ASX:MAD) | A$6.25 | A$11.89 | 47.4% |
| Atlas Arteria (ASX:ALX) | A$4.97 | A$9.53 | 47.8% |
| MLG Oz (ASX:MLG) | A$0.60 | A$1.15 | 47.9% |
| Charter Hall Group (ASX:CHC) | A$15.27 | A$28.64 | 46.7% |
| Aussie Broadband (ASX:ABB) | A$3.64 | A$6.42 | 43.3% |
| ReadyTech Holdings (ASX:RDY) | A$3.19 | A$6.20 | 48.5% |
| Syrah Resources (ASX:SYR) | A$0.25 | A$0.48 | 47.4% |
| Gold Road Resources (ASX:GOR) | A$2.52 | A$4.63 | 45.5% |
| Vault Minerals (ASX:VAU) | A$0.385 | A$0.68 | 43% |
Here we highlight a subset of our preferred stocks from the screener.
Ansell
Overview: Ansell Limited is a global company that designs, sources, develops, manufactures, distributes, and sells hand and body protection solutions across various regions including the Asia Pacific, Europe, the Middle East, Africa, Latin America, the Caribbean, and North America with a market cap of A$4.87 billion.
Operations: The company's revenue segments include $834.20 million from Healthcare and $785.10 million from Industrial, including Specialty Markets.
Estimated Discount To Fair Value: 40.4%
Ansell is trading at A$34.4, significantly below its estimated fair value of A$57.71, suggesting it may be undervalued based on cash flows. Despite a decline in profit margins from 9% to 4.7%, earnings are forecast to grow significantly at 22.1% annually, outpacing the Australian market's growth rate of 12.6%. However, shareholders experienced dilution last year and recent buyback plans have expired as of January 3, 2025.
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The analysis detailed in our Ansell growth report hints at robust future financial performance.
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Take a closer look at Ansell's balance sheet health here in our report.
Regal Partners
Overview: Regal Partners Limited is a privately owned hedge fund sponsor with a market capitalization of A$1.25 billion.
Operations: The company's revenue segment is primarily from the provision of investment management services, amounting to A$198.50 million.