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As the ASX200 hovers just below the 8,100-point mark, investors are closely watching the implications of ongoing tariffs and potential shifts in currency value. In this fluctuating environment, identifying undervalued stocks becomes crucial as they may offer opportunities for growth despite broader market challenges.
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$2.00 | 46.8% |
| Domino's Pizza Enterprises (ASX:DMP) | A$27.01 | A$51.48 | 47.5% |
| Capricorn Metals (ASX:CMM) | A$8.01 | A$14.99 | 46.5% |
| PointsBet Holdings (ASX:PBH) | A$1.10 | A$2.14 | 48.7% |
| SciDev (ASX:SDV) | A$0.435 | A$0.81 | 46.4% |
| Charter Hall Group (ASX:CHC) | A$17.00 | A$31.71 | 46.4% |
| Electro Optic Systems Holdings (ASX:EOS) | A$1.16 | A$2.25 | 48.5% |
| Pantoro (ASX:PNR) | A$0.14 | A$0.26 | 45.9% |
| ReadyTech Holdings (ASX:RDY) | A$2.79 | A$5.13 | 45.6% |
| Adriatic Metals (ASX:ADT) | A$4.45 | A$8.14 | 45.3% |
Let's uncover some gems from our specialized screener.
Capricorn Metals
Overview: Capricorn Metals Ltd is involved in the evaluation, exploration, development, and production of gold properties in Australia with a market cap of A$3.30 billion.
Operations: The company's revenue primarily stems from its Karlawinda gold project, which generated A$359.73 million.
Estimated Discount To Fair Value: 46.5%
Capricorn Metals appears undervalued based on cash flows, trading at A$8.01 compared to an estimated fair value of A$14.99. Despite a recent dip in net income to A$43.11 million for the half-year, earnings are forecasted to grow significantly at 27.77% annually over the next three years, outpacing the Australian market's growth rate. Revenue is also projected to rise by 23.3% per year, reflecting strong future potential despite current earnings fluctuations.
Nanosonics
Overview: Nanosonics Limited is a global infection prevention company with a market capitalization of approximately A$1.35 billion.
Operations: The company's revenue is primarily derived from its Healthcare Equipment segment, which generated A$183.97 million.
Estimated Discount To Fair Value: 35.4%
Nanosonics is trading at A$4.40, significantly below its estimated fair value of A$6.81, suggesting it may be undervalued based on cash flows. The company's earnings are expected to grow 23.8% annually over the next three years, surpassing the Australian market's growth rate. Recent earnings results show a rise in net income to A$9.76 million for H1 2025 from A$6.17 million a year ago, with revised revenue guidance indicating further growth potential.