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As the Australian market experiences fluctuations, with the ASX200 closing down 0.94% at 7,859.7 points and sectors like IT and Energy leading declines, investors are increasingly focused on identifying stocks that may be trading below their fair value estimates. In such a volatile environment, recognizing undervalued stocks can offer potential opportunities for those looking to capitalize on discrepancies between current market prices and intrinsic value assessments.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Acrow (ASX:ACF) | A$1.065 | A$1.97 | 45.8% |
| Nido Education (ASX:NDO) | A$0.78 | A$1.56 | 49.9% |
| Nick Scali (ASX:NCK) | A$15.50 | A$27.27 | 43.2% |
| Amaero International (ASX:3DA) | A$0.25 | A$0.44 | 43.5% |
| PolyNovo (ASX:PNV) | A$1.10 | A$2.11 | 47.8% |
| Environmental Group (ASX:EGL) | A$0.25 | A$0.46 | 45.6% |
| Charter Hall Group (ASX:CHC) | A$16.50 | A$31.87 | 48.2% |
| SciDev (ASX:SDV) | A$0.43 | A$0.82 | 47.3% |
| Genetic Signatures (ASX:GSS) | A$0.475 | A$0.88 | 45.9% |
| Pantoro (ASX:PNR) | A$2.55 | A$4.82 | 47.1% |
Here we highlight a subset of our preferred stocks from the screener.
Genesis Minerals
Overview: Genesis Minerals Limited is involved in the exploration, production, and development of gold deposits in Western Australia with a market cap of A$4.18 billion.
Operations: The company generates revenue of A$561.40 million from its mineral production, exploration, and development activities in Western Australia.
Estimated Discount To Fair Value: 16.2%
Genesis Minerals has shown strong growth, with half-year sales reaching A$338.73 million, up from A$215.92 million the previous year, and net income rising to A$59.8 million. The company updated its 2025 production guidance to 190,000-210,000 oz of gold. Trading at approximately 16.2% below fair value (A$3.7 vs estimated A$4.41), Genesis is undervalued based on cash flows with earnings projected to grow significantly at over 20% annually for the next three years.
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Our growth report here indicates Genesis Minerals may be poised for an improving outlook.
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Get an in-depth perspective on Genesis Minerals' balance sheet by reading our health report here.
GenusPlus Group
Overview: GenusPlus Group Ltd operates in Australia, focusing on the installation, construction, and maintenance of power and communication systems, with a market cap of A$490.11 million.
Operations: The company's revenue segments are comprised of Industrial at A$187.56 million, Communication at A$86.02 million, and Infrastructure at A$372.42 million.
Estimated Discount To Fair Value: 15.4%