A stock that you can buy at a price below what it is worth is considered undervalued. This is the case for Bank of Zhengzhou and Huajun Holdings. There’s a few ways you can determine how much a company is actually worth. The most popular methods include discounting the company’s cash flows it is expected to create in the future, or comparing its price to its peers or the value of its assets. The discrepancy between the price and value means investors have an opportunity to buy shares at a discount. Below are the stocks I believe are undervalued on all criteria, based on their latest financial data.

Bank of Zhengzhou Co., Ltd. (SEHK:6196)

Bank of Zhengzhou Co., Ltd. provides various banking products and services in the People’s Republic of China. Formed in 1996, and currently lead by Xueqing Shen, the company now has 3,773 employees and with the stock’s market cap sitting at HKD HK$24.85B, it comes under the large-cap category.

6196’s stock is now hovering at around -64% below its value of ¥13.06, at a price tag of ¥4.67, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. Moreover, 6196’s PE ratio is currently around 4.9x against its its banks peer level of 7.1x, suggesting that relative to other stocks in the industry, 6196 can be bought at a cheaper price right now. 6196 is also in good financial health, with short-term assets covering liabilities in the near future as well as in the long run.

More on Bank of Zhengzhou here.

Huajun Holdings Limited (SEHK:377)

Huajun Holdings Limited, an investment holding company, manufactures and sells multi-color packaging products, carton boxes, books, brochures, and other paper products in the People’s Republic of China, the United States, European countries, and internationally. Established in 1964, and now run by Jiwei Wu, the company now has 3,453 employees and with the company’s market capitalisation at HKD HK$27.60M, we can put it in the small-cap group.

377’s stock is now hovering at around -100% less than its real value of ¥614.86, at a price tag of ¥0.46, according to my discounted cash flow model. The difference between value and price signals a potential opportunity to buy 377 shares at a discount. In terms of relative valuation, 377’s PE ratio stands at 0.6x while its packaging peer level trades at 14.9x, implying that relative to other stocks in the industry, 377 can be bought at a cheaper price right now. 377 is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities.