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Companies, such as Sinarmas Land, trading at a market price below their true values are considered to be undervalued. 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.
Sinarmas Land Limited (SGX:A26)
Sinarmas Land Limited, an investment holding company, develops and leases properties in Indonesia, the United Kingdom, Malaysia, China, and Singapore. Founded in 1994, and currently lead by Muktar Widjaja, the company currently employs 6,000 people and with the stock’s market cap sitting at SGD SGD1.60B, it comes under the small-cap stocks category.
A26’s stock is now floating at around -79% lower than its true value of $1.79, at the market price of S$0.38, based on my discounted cash flow model. This discrepancy gives us a chance to invest in A26 at a discount. Furthermore, A26’s PE ratio is trading at around 4.48x against its its Real Estate peer level of, 10.24x indicating that relative to other stocks in the industry, we can invest in A26 at a lower price. A26 is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities.
Interested in Sinarmas Land? Find out more here.
Singapore Shipping Corporation Limited (SGX:S19)
Singapore Shipping Corporation Limited, an investment holding company, owns and manages ships in Singapore, Japan, and internationally. Singapore Shipping was established in 1988 and with the company’s market capitalisation at SGD SGD126.74M, we can put it in the small-cap stocks category.
S19’s shares are currently trading at -57% beneath its true level of $0.68, at a price tag of S$0.29, based on its expected future cash flows. This discrepancy signals a potential opportunity to buy S19 shares at a low price. What’s even more appeal is that S19’s PE ratio stands at around 10.14x while its Shipping peer level trades at, 16.85x indicating that relative to its comparable company group, you can buy S19 for a cheaper price. S19 is also strong in terms of its financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
Dig deeper into Singapore Shipping here.
HLH Group Limited (SGX:H27)
HLH Group Limited, an investment holding company, operates as a property developer and agriculture company. HLH Group was formed in 1988 and with the company’s market capitalisation at SGD SGD39.95M, we can put it in the small-cap group.