ASX Value Stocks Including PEXA Group And 2 Others Priced Below Intrinsic Estimates

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Over the last 7 days, the Australian market has risen 2.1% and is up 11% over the last 12 months, with earnings forecast to grow by 13% annually. In this favorable environment, identifying undervalued stocks like PEXA Group and two others can present attractive opportunities for investors looking to capitalize on potential growth.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

LaserBond (ASX:LBL)

A$0.725

A$1.37

47.1%

Mader Group (ASX:MAD)

A$5.37

A$10.56

49.1%

Ingenia Communities Group (ASX:INA)

A$5.31

A$10.56

49.7%

Telix Pharmaceuticals (ASX:TLX)

A$19.97

A$39.05

48.9%

Regal Partners (ASX:RPL)

A$3.41

A$6.64

48.6%

Megaport (ASX:MP1)

A$11.79

A$21.54

45.3%

Millennium Services Group (ASX:MIL)

A$1.145

A$2.24

48.9%

Airtasker (ASX:ART)

A$0.265

A$0.52

49.4%

Sandfire Resources (ASX:SFR)

A$8.79

A$16.11

45.4%

Matrix Composites & Engineering (ASX:MCE)

A$0.30

A$0.55

45.1%

Click here to see the full list of 37 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener.

PEXA Group

Overview: PEXA Group Limited operates a digital property settlements platform in Australia and has a market cap of A$2.46 billion.

Operations: PEXA Group Limited generates revenue through its digital property settlements platform in Australia.

Estimated Discount To Fair Value: 26.2%

PEXA Group is trading at A$13.88, significantly below its estimated fair value of A$18.81, indicating it may be undervalued based on cash flows. The company’s revenue is forecast to grow 13.7% annually, outpacing the broader Australian market's growth rate of 5.3%. Despite a low return on equity forecast (7.8%) in three years, PEXA is expected to become profitable within the same period with earnings growth projected at 45.1% per year. Recent executive changes include CEO Glenn King's planned retirement by FY24-25 end and Georgina Lynch's appointment as an Independent Non-Executive Director effective September 2024.

ASX:PXA Discounted Cash Flow as at Aug 2024
ASX:PXA Discounted Cash Flow as at Aug 2024

Sandfire Resources

Overview: Sandfire Resources Limited is a mining company involved in the exploration, evaluation, and development of mineral tenements and projects with a market cap of A$4.02 billion.

Operations: The company's revenue segments include MATSA Copper Operations generating $581.75 million and Degrussa Copper Operations contributing $94.49 million, with a segment adjustment of $125.34 million.