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Discover 3 ASX Stocks Including Genesis Minerals Estimated To Be Trading Below Fair Value

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The Australian stock market recently experienced a slight downturn, with the ASX 200 closing down by 0.57% amid mixed performances across various sectors. In this fluctuating environment, identifying stocks that are potentially undervalued can be key to making informed investment decisions; such opportunities may exist in companies like Genesis Minerals and others that are estimated to be trading below their fair value.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

Accent Group (ASX:AX1)

A$2.53

A$5.00

49.4%

Telix Pharmaceuticals (ASX:TLX)

A$22.96

A$44.19

48%

Atlas Arteria (ASX:ALX)

A$4.81

A$9.36

48.6%

MLG Oz (ASX:MLG)

A$0.59

A$1.13

47.9%

Ingenia Communities Group (ASX:INA)

A$4.99

A$9.34

46.6%

Millennium Services Group (ASX:MIL)

A$1.145

A$2.24

48.9%

Genesis Minerals (ASX:GMD)

A$2.47

A$4.74

47.9%

Vault Minerals (ASX:VAU)

A$0.34

A$0.64

47.1%

Audinate Group (ASX:AD8)

A$9.02

A$17.56

48.6%

Credit Clear (ASX:CCR)

A$0.355

A$0.71

50%

Click here to see the full list of 42 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Genesis Minerals

Overview: Genesis Minerals Limited is involved in the exploration, production, and development of gold deposits in Western Australia with a market cap of A$2.73 billion.

Operations: The company generates revenue of A$438.59 million from its activities in mineral production, exploration, and development.

Estimated Discount To Fair Value: 47.9%

Genesis Minerals has shown a remarkable turnaround, reporting A$84 million in net income for the year ending June 2024 after a previous net loss. The stock is currently trading at A$2.47, significantly below its estimated fair value of A$4.74, indicating potential undervaluation based on cash flows. With earnings expected to grow 22.7% annually over the next three years and revenue forecasted to increase by 18% per year, Genesis presents an intriguing opportunity despite past shareholder dilution concerns.

ASX:GMD Discounted Cash Flow as at Nov 2024
ASX:GMD Discounted Cash Flow as at Nov 2024

Medibank Private

Overview: Medibank Private Limited operates as a provider of private health insurance and health services in Australia, with a market capitalization of approximately A$10.47 billion.

Operations: The company's revenue is primarily derived from Health Insurance, generating A$7.90 billion, and Medibank Health services, contributing A$360.10 million.