Companies with shares trading at a market price below what they are actually worth, such as China Pioneer Pharma Holdings and Easy Repay Finance & Investment, are deemed undervalued. There’s a few ways you can measure the value of a company – you can forecast how much money it will make in the future and base your valuation off of this, or you can look around at its peers of similar size and industry to roughly estimate what it should be worth. Below, I’ve created a list of companies that compare favourably in all criteria based on their most recent financial data, making them potentially good investments.

China Pioneer Pharma Holdings Limited (SEHK:1345)

China Pioneer Pharma Holdings Limited, an investment holding company, markets, promotes, and sells pharmaceutical products and medical devices in the People’s Republic of China, South East Asia, Europe, and Africa. Established in 1996, and currently lead by Mengjun Zhu, the company employs 340 people and with the company’s market capitalisation at HKD HK$3.10B, we can put it in the mid-cap group.

1345’s stock is currently hovering at around -73% lower than its intrinsic value of ¥9.08, at the market price of HK$2.43, based on its expected future cash flows. This discrepancy signals a potential opportunity to buy 1345 shares at a low price. In addition to this, 1345’s PE ratio is around 9.05x compared to its Healthcare peer level of, 26.14x indicating that relative to other stocks in the industry, you can buy 1345’s shares at a cheaper price. 1345 is also robust in terms of financial health, as short-term assets amply cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 4.74% has been dropping for the past few years demonstrating 1345’s ability to reduce its debt obligations year on year. Interested in China Pioneer Pharma Holdings? Find out more here.

Easy Repay Finance & Investment Limited (SEHK:8079)

Easy Repay Finance & Investment Limited engages in money lending, financial instruments and quoted shares investment, and retail and wholesale businesses in Hong Kong and Macau. The company provides employment to 105 people and with the company’s market capitalisation at HKD HK$120.39M, we can put it in the small-cap stocks category.

8079’s shares are now hovering at around -56% below its true value of $1.26, at a price of HK$0.55, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. In addition to this, 8079’s PE ratio is around 6.05x relative to its Consumer Finance peer level of, 8.28x meaning that relative to its peers, you can purchase 8079’s stock for a lower price right now. 8079 is also a financially healthy company, as current assets can cover liabilities in the near term and over the long run. The stock’s debt-to-equity ratio of 1.61% has been falling for the past few years signifying 8079’s capacity to pay down its debt. Interested in Easy Repay Finance & Investment? Find out more here.