Flight Centre Travel Group And 2 More ASX Stocks Estimated Below Intrinsic Value

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The Australian stock market has experienced a slight downturn over the last week, falling by 1.4%, though it remains up by 6.5% over the past year with earnings expected to grow by 13% annually. In such a fluctuating environment, identifying stocks that are potentially undervalued can offer opportunities for investors looking for value in a growing market.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

GTN (ASX:GTN)

A$0.445

A$0.85

47.4%

MaxiPARTS (ASX:MXI)

A$2.04

A$3.94

48.2%

ReadyTech Holdings (ASX:RDY)

A$3.25

A$6.26

48%

Australian Clinical Labs (ASX:ACL)

A$2.48

A$4.73

47.5%

Strike Energy (ASX:STX)

A$0.225

A$0.45

50.3%

IPH (ASX:IPH)

A$6.25

A$12.00

47.9%

Regal Partners (ASX:RPL)

A$3.29

A$6.18

46.8%

Core Lithium (ASX:CXO)

A$0.085

A$0.17

49.5%

Millennium Services Group (ASX:MIL)

A$1.145

A$2.24

48.9%

SiteMinder (ASX:SDR)

A$5.20

A$10.02

48.1%

Click here to see the full list of 49 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks

Flight Centre Travel Group

Overview: Flight Centre Travel Group Limited operates as a travel retailer serving both leisure and corporate sectors across regions including Australia, New Zealand, the Americas, Europe, the Middle East, Africa, and Asia with a market capitalization of approximately A$4.54 billion.

Operations: The company's revenue is primarily derived from its leisure and corporate travel services, generating A$1.28 billion and A$1.06 billion respectively.

Estimated Discount To Fair Value: 19.7%

Flight Centre Travel Group (FLT), priced at A$20.63, is trading below our estimated fair value of A$25.62, indicating a potential undervaluation. Recently profitable, FLT's earnings are expected to increase by 18.8% annually, outpacing the Australian market forecast of 13%. Despite this growth, its revenue increase of 9.7% annually exceeds the market's 5.2%, but does not reach high growth thresholds. With a projected high return on equity of 21.8% in three years, FLT combines solid profitability prospects with moderate undervaluation based on cash flows.

ASX:FLT Discounted Cash Flow as at Jul 2024
ASX:FLT Discounted Cash Flow as at Jul 2024

HMC Capital

Overview: HMC Capital Limited, operating in Australia, manages real estate-focused funds with a market capitalization of approximately A$2.63 billion.

Operations: The firm oversees funds concentrated on real estate, generating revenues of approximately A$80.29 million.