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As global markets continue to navigate the complexities of rising inflation and interest rate expectations, U.S. stock indexes are climbing toward record highs, with growth stocks outpacing value shares. In this environment, identifying undervalued stocks can be a strategic approach for investors looking to capitalize on potential discrepancies between market prices and intrinsic values.
Top 10 Undervalued Stocks Based On Cash Flows
Name | Current Price | Fair Value (Est) | Discount (Est) |
Provident Financial Services (NYSE:PFS) | US$18.66 | US$36.99 | 49.6% |
Hancom (KOSDAQ:A030520) | ₩24650.00 | ₩49094.79 | 49.8% |
Nuvoton Technology (TWSE:4919) | NT$96.10 | NT$191.31 | 49.8% |
Smurfit Westrock (NYSE:SW) | US$55.30 | US$109.74 | 49.6% |
IDP Education (ASX:IEL) | A$12.12 | A$24.11 | 49.7% |
Solum (KOSE:A248070) | ₩17610.00 | ₩34899.00 | 49.5% |
Com2uS (KOSDAQ:A078340) | ₩48200.00 | ₩96034.26 | 49.8% |
Saipem (BIT:SPM) | €2.341 | €4.67 | 49.8% |
Likewise Group (AIM:LIKE) | £0.185 | £0.37 | 49.8% |
Constellium (NYSE:CSTM) | US$9.24 | US$18.27 | 49.4% |
Below we spotlight a couple of our favorites from our exclusive screener.
CapMan Oyj
Overview: CapMan Oyj is a leading Nordic private assets management and investment firm specializing in growth capital, middle market buyouts, and infrastructure investments, with a market cap of €346.28 million.
Operations: CapMan Oyj generates revenue primarily through its Management Company Business, which accounts for €56.76 million, and its Service Business segment, contributing €0.27 million.
Estimated Discount To Fair Value: 19.4%
CapMan Oyj, trading at €1.96, is undervalued by 19.4% compared to its fair value of €2.43 based on discounted cash flow analysis. The company's earnings are expected to grow significantly at 29% annually over the next three years, outpacing the Finnish market's growth rate of 11.9%. However, despite strong revenue growth and a substantial increase in net income last year, dividend sustainability remains a concern due to insufficient coverage by earnings or free cash flows.
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Our growth report here indicates CapMan Oyj may be poised for an improving outlook.
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Click to explore a detailed breakdown of our findings in CapMan Oyj's balance sheet health report.
Surgical Science Sweden
Overview: Surgical Science Sweden AB (publ) develops and markets virtual reality simulators for evidence-based medical training across Europe, the Americas, Asia, and other international markets, with a market cap of SEK9.63 billion.
Operations: The company's revenue is derived from two segments: Industry/OEM, generating SEK419.66 million, and Educational Products, contributing SEK440.17 million.