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As global markets continue to reach record highs, buoyed by robust trading activity and positive economic indicators, investors are navigating a landscape shaped by geopolitical developments and domestic policy shifts. Amidst this environment, identifying stocks that may be undervalued can offer opportunities for those looking to capitalize on potential market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| HangzhouS MedTech (SHSE:688581) | CN¥62.38 | CN¥124.04 | 49.7% |
| Pan African Resources (AIM:PAF) | £0.3735 | £0.75 | 49.9% |
| Iguatemi (BOVESPA:IGTI3) | R$2.25 | R$4.49 | 49.8% |
| West Bancorporation (NasdaqGS:WTBA) | US$23.33 | US$46.41 | 49.7% |
| Elekta (OM:EKTA B) | SEK61.50 | SEK122.95 | 50% |
| Adtraction Group (OM:ADTR) | SEK38.40 | SEK76.45 | 49.8% |
| Pluk Phak Praw Rak Mae (SET:OKJ) | THB15.50 | THB30.86 | 49.8% |
| Privia Health Group (NasdaqGS:PRVA) | US$21.66 | US$43.17 | 49.8% |
| Genesis Minerals (ASX:GMD) | A$2.41 | A$4.82 | 50% |
| Akeso (SEHK:9926) | HK$66.50 | HK$132.56 | 49.8% |
Here we highlight a subset of our preferred stocks from the screener.
Singapore Technologies Engineering
Overview: Singapore Technologies Engineering Ltd is a global technology, defence, and engineering company with a market cap of SGD14.17 billion.
Operations: The company generates revenue from three main segments: Commercial Aerospace (SGD4.34 billion), Urban Solutions & Satcom (SGD2.01 billion), and Defence & Public Security (SGD4.54 billion).
Estimated Discount To Fair Value: 34.4%
Singapore Technologies Engineering is trading at S$4.59, significantly below its estimated fair value of S$7, suggesting potential undervaluation. Despite a forecasted earnings growth rate of 11.9% annually, outpacing the Singapore market's 11.3%, revenue growth remains moderate at 6.4%. However, debt coverage by operating cash flow is inadequate, and its dividend history is unstable. Recent board changes include Ms. Lien Siaou-Sze joining the Audit Committee to enhance governance oversight.
JAC Recruitment
Overview: JAC Recruitment Co., Ltd. operates as a recruitment consultancy business in Japan with a market cap of ¥113.22 billion.
Operations: The company's revenue segments include the Domestic Recruitment Business generating ¥33.46 billion, Overseas Business contributing ¥3.74 billion, and the Domestic Job Offer Advertising Business with ¥390 million.