A stock that you can buy at a price below what it is worth is considered undervalued. This is the case for Cabbeen Fashion and Jujiang Construction Group. 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.

Cabbeen Fashion Limited (SEHK:2030)

Cabbeen Fashion Limited, a fashion casual menswear company, together with its subsidiaries, researches and designs apparel, footwear and accessories in the People’s Republic of China. Formed in 1997, and now led by CEO Siu Ng, the company provides employment to 402 people and with the company’s market cap sitting at HKD HK$1.45B, it falls under the small-cap category.

2030’s shares are now hovering at around -78% below its actual value of ¥9.91, at a price tag of HK$2.17, based on my discounted cash flow model. The divergence signals an opportunity to buy 2030 shares at a low price. In terms of relative valuation, 2030’s PE ratio is around 5.93x while its Luxury peer level trades at, 14.42x suggesting that relative to other stocks in the industry, we can purchase 2030’s shares for cheaper. 2030 is also strong in terms of its financial health, with short-term assets covering liabilities in the near future as well as in the long run. It’s debt-to-equity ratio of 27.30% has been reducing for the last couple of years signalling 2030’s capacity to pay down its debt. More detail on Cabbeen Fashion here.

Jujiang Construction Group Co., Ltd. (SEHK:1459)

Jujiang Construction Group Co., Ltd. provides construction contracting services for residential, commercial, industrial, and public works in the People’s Republic of China. Founded in 1965, and headed by CEO Yaoneng Lv, the company now has 727 employees and with the company’s market capitalisation at HKD HK$134.69M, we can put it in the small-cap stocks category.

1459’s stock is currently trading at -90% beneath its true level of ¥9.78, at a price of HK$1.01, based on my discounted cash flow model. This discrepancy gives us a chance to invest in 1459 at a discount. Also, 1459’s PE ratio stands at around 3.48x relative to its Construction peer level of, 13.78x implying that relative to its comparable company group, you can purchase 1459’s stock for a lower price right now. 1459 is also in good 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 48.63% has been dropping over the past couple of years showing 1459’s capability to reduce its debt obligations year on year. Interested in Jujiang Construction Group? Find out more here.

NewOcean Energy Holdings Limited (SEHK:342)

NewOcean Energy Holdings Limited, an investment holding company, distributes and sells liquefied petroleum gas (LPG) and natural gas, oil products, and electronic products. The company currently employs 1295 people and with the company’s market capitalisation at HKD HK$2.61B, we can put it in the mid-cap group.

342’s shares are now floating at around -53% below its value of $3.8, at a price tag of HK$1.77, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Furthermore, 342’s PE ratio stands at around 3.13x while its Oil and Gas peer level trades at, 11.31x suggesting that relative to its competitors, you can buy 342’s shares at a cheaper price. 342 is also strong financially, as short-term assets amply cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 76.56% has been falling over the past couple of years revealing 342’s capacity to reduce its debt obligations year on year. More on NewOcean Energy Holdings 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.