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As global markets navigate a mixed landscape of consumer confidence dips and moderate stock index gains, investors are increasingly seeking opportunities amid fluctuating economic indicators. In this context, identifying undervalued stocks can be particularly appealing, as these investments may offer potential value despite broader market uncertainties.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Globetronics Technology Bhd (KLSE:GTRONIC) | MYR0.585 | MYR1.17 | 49.8% |
| Wasion Holdings (SEHK:3393) | HK$7.13 | HK$14.19 | 49.7% |
| Strike CompanyLimited (TSE:6196) | ¥3655.00 | ¥7288.65 | 49.9% |
| S Foods (TSE:2292) | ¥2737.00 | ¥5472.35 | 50% |
| GlobalData (AIM:DATA) | £1.875 | £3.74 | 49.8% |
| Charter Hall Group (ASX:CHC) | A$14.35 | A$28.70 | 50% |
| Cettire (ASX:CTT) | A$1.51 | A$3.02 | 49.9% |
| ASMPT (SEHK:522) | HK$74.90 | HK$149.66 | 50% |
| Merus Power Oyj (HLSE:MERUS) | €3.71 | €7.39 | 49.8% |
| Progress Software (NasdaqGS:PRGS) | US$65.05 | US$129.48 | 49.8% |
Below we spotlight a couple of our favorites from our exclusive screener.
Eaglerise Electric & Electronic (China)
Overview: Eaglerise Electric & Electronic (China) Co., Ltd. operates in the electrical and electronic manufacturing industry with a market cap of CN¥7.47 billion.
Operations: Eaglerise Electric & Electronic (China) Co., Ltd. generates its revenue from various segments within the electrical and electronic manufacturing industry.
Estimated Discount To Fair Value: 41.1%
Eaglerise Electric & Electronic (China) is trading at CN¥17.82, significantly below its estimated fair value of CN¥30.27, suggesting potential undervaluation based on cash flows. The company's earnings are forecast to grow at 35.7% annually, outpacing the Chinese market's growth rate of 25.4%. Despite a recent share buyback totaling CN¥92.68 million, the dividend yield remains inadequately covered by free cash flows, highlighting a potential risk for investors focusing on dividends.
Strike CompanyLimited
Overview: Strike Company, Limited offers mergers and acquisitions brokerage services for small and medium-sized companies in Japan, with a market cap of ¥70.19 billion.
Operations: Strike Company, Limited generates its revenue primarily through providing brokerage services for mergers and acquisitions involving small and medium-sized enterprises within Japan.