A stock that you can buy at a price below what it is worth is considered undervalued. This is the case for Trinity Mirror and Eland Oil & Gas. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.

Trinity Mirror plc (LSE:TNI)

Trinity Mirror plc produces and distributes content through newspapers and associated digital platforms in the United Kingdom, the Republic of Ireland, Continental Europe, and internationally. Formed in 1832, and currently lead by Simon Fox, the company provides employment to 5,362 people and with the stock’s market cap sitting at GBP £206.45M, it comes under the small-cap group.

TNI’s stock is now trading at -77% lower than its true level of £3.49, at a price tag of £0.8, based on its expected future cash flows. The difference between value and price signals a potential opportunity to buy TNI shares at a discount. Also, TNI’s PE ratio is around 3.5x while its media peer level trades at 23.9x, implying that relative to its competitors, we can buy TNI’s stock at a cheaper price today. TNI is also strong in terms of its financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 5% has been falling for the past few years demonstrating TNI’s ability to pay down its debt.

Eland Oil & Gas PLC (AIM:ELA)

Eland Oil & Gas PLC, together with its subsidiaries, engages in development, exploration, and production of oil and gas properties in West Africa. Formed in 2009, and currently lead by George Maxwell, the company size now stands at 46 people and with the stock’s market cap sitting at GBP £153.56M, it comes under the small-cap category.

ELA’s stock is now hovering at around -78% less than its intrinsic level of $3.23, at a price of $0.7, based on my discounted cash flow model. The mismatch signals a potential chance to invest in ELA at a discounted price. What’s even more appeal is that ELA’s PE ratio is trading at around 12.7x relative to its oil and gas peer level of 24.1x, indicating that relative to its comparable set of companies, ELA’s stock can be bought at a cheaper price. ELA is also strong in terms of its financial health, as current assets can cover liabilities in the near term and over the long run. The stock’s debt-to equity ratio of 9% has been declining for the last couple of years revealing its capability to pay down its debt.