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Companies, such as Cortina Holdings, are deemed to be undervalued because their shares are currently trading below their true values. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Cortina Holdings Limited (SGX:C41)
Cortina Holdings Limited, an investment holding company, engages in the retail and distribution of timepieces and accessories in Singapore, Malaysia, Thailand, Indonesia, Hong Kong, Taiwan, and Russia. Cortina Holdings was started in 1972 and with the stock’s market cap sitting at SGD SGD138.26M, it comes under the small-cap group.
C41’s stock is currently floating at around -73% lower than its value of $3.11, at the market price of S$0.83, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Furthermore, C41’s PE ratio is currently around 7.54x against its its Specialty Retail peer level of, 10.32x meaning that relative to its competitors, C41 can be bought at a cheaper price right now. C41 is also robust in terms of financial health, as short-term assets amply cover upcoming and long-term liabilities. Finally, its debt relative to equity is 40.13%, which has been falling over time, indicating C41’s ability to reduce its debt obligations year on year. More detail on Cortina Holdings here.
Luxking Group Holdings Limited (SGX:BKK)
Luxking Group Holdings Limited, an investment holding company, manufactures and markets pressure-sensitive adhesive tape products in the People’s Republic of China and internationally. Luxking Group Holdings was formed in 1995 and with the company’s market capitalisation at SGD SGD5.06M, we can put it in the small-cap stocks category.
BKK’s shares are now hovering at around -74% less than its true level of ¥1.52, at the market price of S$0.40, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. Furthermore, BKK’s PE ratio is trading at around 5.94x while its Commercial Services peer level trades at, 14.31x indicating that relative to its peers, you can buy BKK’s shares at a cheaper price. BKK is also a financially healthy company, with short-term assets covering liabilities in the near future as well as in the long run. Finally, its debt relative to equity is 79.27%, which has been reducing for the last couple of years revealing BKK’s capacity to reduce its debt obligations year on year. More on Luxking Group Holdings here.