Companies, such as Hi-P International, 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.
Hi-P International Limited (SGX:H17)
Hi-P International Limited operates as an integrated contract manufacturer serving the telecommunications, consumer electronics, computing and peripherals, lifestyle, and medical and industrial devices industries. Hi-P International was started in 1980 and with the stock’s market cap sitting at SGD SGD1.39B, it comes under the small-cap group.
H17’s shares are now trading at -40% below its actual worth of $2.88, at a price of S$1.72, according to my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Moreover, H17’s PE ratio is currently around 11.43x while its index peer level trades at, 13.91x suggesting that relative to its comparable company group, you can purchase H17’s stock for a lower price right now. H17 is also a financially healthy company, as current assets can cover liabilities in the near term and over the long run.
Dig deeper into Hi-P International here.
Valuetronics Holdings Limited (SGX:BN2)
Valuetronics Holdings Limited, an investment holding company, provides integrated electronics manufacturing services (EMS) in the United States, the People’s Republic of China, Poland, Canada, the Netherlands, and internationally. Valuetronics Holdings was started in 1992 and with the stock’s market cap sitting at SGD SGD291.76M, it comes under the small-cap group.
BN2’s stock is now hovering at around -42% below its intrinsic level of $1.16, at a price tag of S$0.68, based on its expected future cash flows. The divergence signals an opportunity to buy BN2 shares at a low price. In addition to this, BN2’s PE ratio is trading at around 8.47x compared to its Electronic peer level of, 9.7x suggesting that relative to its comparable set of companies, you can purchase BN2’s stock for a lower price right now. BN2 is also a financially robust company, as current assets can cover liabilities in the near term and over the long run. BN2 also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. More on Valuetronics Holdings here.