Stocks recently deemed undervalued include Emperor Capital Group and Computime Group, as they trade at a market price below their true valuations. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.

Emperor Capital Group Limited (SEHK:717)

Emperor Capital Group Limited, an investment holding company, provides a range of financial services in Hong Kong, the United States, and internationally. Formed in 1993, and headed by CEO Daisy Yeung, the company provides employment to 183 people and with the company’s market capitalisation at HKD HK$4.04B, we can put it in the mid-cap group.

717’s stock is now floating at around -40% lower than its intrinsic level of $1.01, at the market price of $0.6, according to my discounted cash flow model. The divergence signals an opportunity to buy 717 shares at a low price. Moreover, 717’s PE ratio stands at around 6x relative to its capital markets peer level of 16.1x, indicating that relative to its comparable set of companies, you can purchase 717’s stock for a lower price right now. 717 is also in great financial shape, as current assets can cover liabilities in the near term and over the long run.

Computime Group Limited (SEHK:320)

Computime Group Limited, an investment holding company, engages in the research and development, design, manufacture, and trading of electronic control products in the Americas, Europe, and Asia. Established in 1974, and currently headed by CEO King Owyang, the company size now stands at 6,000 people and has a market cap of HKD HK$1.13B, putting it in the small-cap stocks category.

320’s shares are now hovering at around -58% less than its actual level of $3.21, at a price tag of $1.34, based on my discounted cash flow model. The divergence signals an opportunity to buy 320 shares at a low price. Moreover, 320’s PE ratio is around 8.1x while its electronic peer level trades at 13.3x, suggesting that relative to its comparable set of companies, 320’s shares can be purchased for a lower price. 320 is also in great financial shape, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.

Tiande Chemical Holdings Limited (SEHK:609)

Tiande Chemical Holdings Limited, an investment holding company, engages in the research, development, manufacture, and sale of fine chemical products in the People’s Republic of China, the United States, India, Ireland, Taiwan, and internationally. Started in 1997, and run by CEO Xitian Guo, the company provides employment to 1,433 people and with the company’s market capitalisation at HKD HK$1.35B, we can put it in the small-cap stocks category.

609’s shares are now floating at around -62% below its intrinsic level of ¥4.11, at a price of ¥1.58, based on my discounted cash flow model. This mismatch signals an opportunity to buy 609 shares at a discount. In terms of relative valuation, 609’s PE ratio stands at 6.1x against its its chemicals peer level of 12.2x, suggesting that relative to its comparable company group, you can buy 609 for a cheaper price. 609 is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 8% has been diminishing for the past few years signalling its capacity to pay down its debt.

For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our interactive list of undervalued stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.