Stocks, such as Bank of Jinzhou and China Outfitters Holdings, are trading at a value below what they may actually be worth. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.

Bank of Jinzhou Co., Ltd. (SEHK:416)

Bank of Jinzhou Co., Ltd. provides various banking products and services in the People’s Republic of China. Started in 1997, and run by CEO Hong Liu, the company employs 4,549 people and with the stock’s market cap sitting at HKD HK$46.11B, it comes under the large-cap category.

416’s stock is currently floating at around -61% less than its true level of ¥17.24, at the market price of HK$6.80, based on its expected future cash flows. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Also, 416’s PE ratio is trading at 4.2x relative to its Banks peer level of, 6.63x meaning that relative to other stocks in the industry, you can purchase 416’s stock for a lower price right now. 416 is also in good financial health, with current assets covering liabilities in the near term and over the long run.

Continue research on Bank of Jinzhou here.

China Outfitters Holdings Limited (SEHK:1146)

China Outfitters Holdings Limited, an investment holding company, designs, manufactures, markets, and sells apparels and accessories in the People’s Republic of China. Founded in 1999, and run by CEO Yongli Zhang, the company currently employs 2,586 people and with the company’s market capitalisation at HKD HK$861.36M, we can put it in the small-cap group.

1146’s stock is now hovering at around -82% below its actual value of ¥1.4, at a price tag of HK$0.25, based on my discounted cash flow model. This discrepancy gives us a chance to invest in 1146 at a discount. In addition to this, 1146’s PE ratio stands at around 12.79x relative to its Luxury peer level of, 13.17x indicating that relative to its competitors, 1146’s stock can be bought at a cheaper price. 1146 is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities. 1146 has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Dig deeper into China Outfitters Holdings here.

Zuoli Kechuang Micro-Finance Company Limited (SEHK:6866)

Zuoli Kechuang Micro-finance Company Limited operates as a microfinance company in the People’s Republic of China. Established in 2011, and run by CEO Haifeng Hu, the company size now stands at 133 people and has a market cap of HKD HK$1.03B, putting it in the small-cap stocks category.

6866’s shares are currently trading at -56% lower than its actual level of ¥1.99, at a price tag of HK$0.87, based on its expected future cash flows. The mismatch signals a potential chance to invest in 6866 at a discounted price. Also, 6866’s PE ratio is trading at around 5.64x against its its Consumer Finance peer level of, 7.83x meaning that relative to its comparable company group, we can purchase 6866’s shares for cheaper. 6866 is also robust in terms of financial health, as current assets can cover liabilities in the near term and over the long run. It’s debt-to-equity ratio of 32.87% has been diminishing for the last couple of years indicating its capacity to pay down its debt. Interested in Zuoli Kechuang Micro-Finance? Find out more here.

For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.