Companies with shares trading at a market price below what they are actually worth, such as Golden Wheel Tiandi Holdings and China Digital Culture (Group), are deemed undervalued. 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.

Golden Wheel Tiandi Holdings Company Limited (SEHK:1232)

Golden Wheel Tiandi Holdings Company Limited, an investment holding company, owns, develops, and operates integrated commercial and residential properties in the People’s Republic of China. Started in 1994, and currently headed by CEO Kam Wong, the company provides employment to 506 people and with the company’s market capitalisation at HKD HK$1.42B, we can put it in the small-cap group.

1232’s stock is currently trading at -75% lower than its intrinsic value of ¥3.17, at a price tag of HK$0.79, based on its expected future cash flows. The divergence signals an opportunity to buy 1232 shares at a low price. In addition to this, 1232’s PE ratio is trading at around 2.61x against its its Real Estate peer level of, 8.28x indicating that relative to its competitors, 1232 can be bought at a cheaper price right now. 1232 is also strong financially, as short-term assets amply cover upcoming and long-term liabilities.

More on Golden Wheel Tiandi Holdings here.

China Digital Culture (Group) Limited (SEHK:8175)

China Digital Culture (Group) Limited, an investment holding company, provides copyright content to end-users through various platforms in the People’s Republic of China. Founded in 2002, and now led by CEO Tung Chi Hsu, the company size now stands at 100 people and has a market cap of HKD HK$1.09B, putting it in the small-cap group.

8175’s shares are currently hovering at around -76% below its intrinsic level of $2.36, at a price tag of HK$0.56, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. What’s even more appeal is that 8175’s PE ratio stands at around 13.84x while its Internet peer level trades at, 22.35x implying that relative to its comparable set of companies, you can buy 8175 for a cheaper price. 8175 also has a healthy balance sheet, as short-term assets amply cover upcoming and long-term liabilities.