Stocks, such as Sherborne Investors (Guernsey) B, trading at a market price below their true values are considered to be undervalued. 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.
Sherborne Investors (Guernsey) B Limited (LSE:SIGB)
Sherborne Investors (Guernsey) B Limited is a private equity firm specializing in investments in undervalued companies and turnarounds. Sherborne Investors (Guernsey) B was formed in 2012 and with the company’s market capitalisation at GBP £80.21M, we can put it in the small-cap group.
SIGB’s stock is now hovering at around -97% below its true level of £9.05, at the market price of £0.26, based on my discounted cash flow model. This difference in price and value gives us a chance to buy low. In addition to this, SIGB’s PE ratio is trading at 0.5x relative to its capital markets peer level of 17.9x, indicating that relative to its peers, you can buy SIGB’s shares at a cheaper price. SIGB is also robust in terms of financial health, with current assets covering liabilities in the near term and over the long run. SIGB has zero debt on its books as well, meaning it has no long term debt obligations to worry about.
The Scottish Investment Trust PLC (LSE:SCIN)
The Scottish Investment Trust PLC is a publicly owned investment manager. Formed in 1887, and now led by CEO , the company employs 13 people and has a market cap of GBP £664.19M, putting it in the small-cap group.
SCIN’s stock is now trading at -68% less than its actual worth of £26.52, at the market price of £8.42, based on my discounted cash flow model. The divergence signals an opportunity to buy SCIN shares at a low price. What’s even more appeal is that SCIN’s PE ratio is currently around 4.3x relative to its capital markets peer level of 17.9x, meaning that relative to its competitors, we can invest in SCIN at a lower price. SCIN is also strong in terms of its financial health, with current assets covering liabilities in the near term and over the long run. The stock’s debt-to equity ratio of 11% has been declining for the last couple of years signalling SCIN’s ability to reduce its debt obligations year on year.
Bisichi Mining Plc (LSE:BISI)
Bisichi Mining PLC engages in coal mining activities in the United Kingdom and South Africa. Started in 1910, and headed by CEO Andrew Heller, the company employs 194 people and has a market cap of GBP £7.95M, putting it in the small-cap stocks category.