Cortina Holdings and China Jishan Holdings are companies that are currently trading below what they’re actually worth. There’s a few ways you can value a company. 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. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good investments.

Cortina Holdings Limited (SGX:C41)

Cortina Holdings Limited, an investment holding company, engages in the retail and distribution of timepieces and accessories in Singapore, Malaysia, Thailand, Indonesia, Hong Kong, Taiwan, and Russia. Cortina Holdings was established in 1972 and with the stock’s market cap sitting at SGD SGD133.29M, it comes under the small-cap stocks category.

C41’s shares are currently hovering at around -74% less than its intrinsic level of $3.11, at a price of S$0.81, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. In terms of relative valuation, C41’s PE ratio is trading at 7.27x compared to its Specialty Retail peer level of, 10.22x meaning that relative to other stocks in the industry, C41’s shares can be purchased for a lower price. C41 is also strong in terms of its financial health, with current assets covering liabilities in the near term and over the long run. The stock’s debt-to equity ratio of 40.13% has been reducing for the past few years indicating its ability to reduce its debt obligations year on year. Interested in Cortina Holdings? Find out more here.

China Jishan Holdings Limited (SGX:J18)

China Jishan Holdings Limited, an investment holding company, operates in the textile industry in the People’s Republic of China, other Asian countries, and Europe. China Jishan Holdings was established in 1984 and has a market cap of SGD SGD42.51M, putting it in the small-cap stocks category.

J18’s shares are currently trading at -74% lower than its actual value of ¥0.55, at a price tag of S$0.14, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Additionally, J18’s PE ratio stands at 6.82x against its its Luxury peer level of, 19.13x suggesting that relative to its competitors, we can purchase J18’s shares for cheaper. J18 is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities. The stock’s debt-to equity ratio of 191.65% has been dropping for the last couple of years revealing J18’s capability to pay down its debt. More on China Jishan Holdings here.