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As the ASX 200 rebounds with a 0.9% gain to 8,245 points, Australian investors are cautiously optimistic despite looming uncertainties such as upcoming U.S. tariffs. With all sectors in the green and Energy leading the charge, this environment presents an opportunity to explore stocks that may be trading below their fair value estimates; these stocks often offer potential for growth when market conditions stabilize or improve.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Click here to see the full list of 41 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Cettire

Overview: Cettire Limited operates as an online luxury goods retailer in Australia, the United States, and internationally, with a market cap of A$411.74 million.

Operations: The company generates revenue primarily through online retail sales amounting to A$781.98 million.

Estimated Discount To Fair Value: 37.4%

Cettire is trading at A$1.08, significantly below its estimated fair value of A$1.72, indicating potential undervaluation based on cash flows. Despite a recent decline in net income to A$4.75 million, the company's earnings are forecast to grow at 43.4% annually, outpacing the Australian market's growth rate of 11.8%. However, profit margins have decreased from 3.6% to 0.3%, and revenue growth is expected at a moderate pace of 14.7% per year.

• Upon reviewing our latest growth report, Cettire's projected financial performance appears quite optimistic.

• Navigate through the intricacies of Cettire with our comprehensive financial health report here.

Integral Diagnostics

Overview: Integral Diagnostics Limited is a healthcare services company that provides diagnostic imaging services to general practitioners, medical specialists, and allied health professionals in Australia and New Zealand, with a market cap of A$798.95 million.

Operations: The company's revenue is primarily derived from the operation of diagnostic imaging facilities, amounting to A$491.32 million.

Estimated Discount To Fair Value: 45%

Integral Diagnostics is trading at A$2.15, well below its estimated fair value of A$3.91, suggesting it may be undervalued based on cash flows. Recent earnings showed a net loss of A$0.396 million for H1 2025, but the company has become profitable this year with revenue growing to A$253.42 million from last year's figures. Despite shareholder dilution and interest payments not being well covered by earnings, revenue growth is projected to outpace the Australian market significantly over the next three years.