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Grifols Leads Three Stocks That May Be Priced Below Their Estimated True Value

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As global markets exhibit mixed signals with modest gains in the U.S. and challenges in sectors like Chinese real estate, investors are keenly watching for opportunities that might be undervalued. In this environment, identifying stocks such as Grifols that potentially trade below their intrinsic value could offer attractive entry points amidst current market conditions.

Top 10 Undervalued Stocks Based On Cash Flows

Name

Current Price

Fair Value (Est)

Discount (Est)

Pioneer Cement (KASE:PIOC)

PKR161.80

PKR322.92

49.9%

Boule Diagnostics (OM:BOUL)

SEK10.45

SEK20.90

50%

Arcoma (OM:ARCOMA)

SEK17.95

SEK35.78

49.8%

Count (ASX:CUP)

A$0.555

A$1.10

49.7%

Fodelia Oyj (HLSE:FODELIA)

€5.86

€11.71

50%

Interojo (KOSDAQ:A119610)

₩24900.00

₩49550.40

49.7%

Elkem (OB:ELK)

NOK19.93

NOK39.60

49.7%

argenx (ENXTBR:ARGX)

€419.70

€839.19

50%

Wallbox (NYSE:WBX)

US$1.27

US$2.53

49.8%

3R Petroleum Óleo e Gás (BOVESPA:RRRP3)

R$26.10

R$51.95

49.8%

Click here to see the full list of 956 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of from the screener

Grifols

Overview: Grifols, S.A. is a Spain-based plasma therapeutic company with operations across the United States, Canada, and other international markets, boasting a market capitalization of approximately €5.50 billion.

Operations: The company generates its revenue primarily through three segments: Biopharma, which brings in €5.66 billion, Diagnostic, accounting for €652.08 million, and Bio Supplies with €149.16 million in sales.

Estimated Discount To Fair Value: 42.3%

Grifols, trading at €9.08, is significantly below our €15.73 fair value estimate based on discounted cash flow analysis, indicating a potential undervaluation of more than 20%. Despite challenges in covering interest payments with earnings and one-off items affecting financial results, Grifols shows promising growth prospects. Earnings are expected to grow by 27.3% annually over the next three years, outpacing the Spanish market's 9.4% growth rate. Recent board changes and successful debt financing actions also reflect active management adjustments and strategic financial planning.

BME:GRF Discounted Cash Flow as at Jun 2024
BME:GRF Discounted Cash Flow as at Jun 2024

Prio

Overview: Prio S.A., together with its subsidiaries, is involved in the exploration, development, and production of oil and natural gas properties both in Brazil and internationally, with a market capitalization of approximately R$36.03 billion.

Operations: The company generates R$12.39 billion from its oil and gas exploration and production activities.