Companies with shares trading at a market price below what they are actually worth, such as Guardian Capital Group and Chibougamau Independent Mines, are deemed undervalued. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Guardian Capital Group Limited (TSX:GCG.A)
Guardian Capital Group Limited, through its subsidiaries, operates as a diversified financial services company in Canada, the United Kingdom, the United States, and the Caribbean. Started in 1962, and now led by CEO George Mavroudis, the company employs 354 people and with the company’s market capitalisation at CAD CA$671.19M, we can put it in the small-cap category.
GCG.A’s stock is currently trading at -21% under its actual worth of $30.33, at a price of $24.11, based on its expected future cash flows. The mismatch signals a potential chance to invest in GCG.A at a discounted price. In addition to this, GCG.A’s PE ratio is trading at 8.2x against its its capital markets peer level of 14.2x, indicating that relative to its competitors, you can purchase GCG.A’s stock for a lower price right now. GCG.A 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. It’s debt-to-equity ratio of 13% has been diminishing over the past couple of years signifying GCG.A’s capability to reduce its debt obligations year on year.
Chibougamau Independent Mines Inc. (TSXV:CBG)
Chibougamau Independent Mines Inc. engages in the acquisition, exploration, and development of natural resource properties in Canada. Chibougamau Independent Mines was established in 2010 and with the company’s market capitalisation at CAD CA$2.11M, we can put it in the small-cap stocks category.
CBG’s stock is now floating at around -66% under its actual worth of $0.16, at a price tag of $0.06, based on its expected future cash flows. The divergence signals an opportunity to buy CBG shares at a low price. Additionally, CBG’s PE ratio is around 8x relative to its metals and mining peer level of 11.1x, suggesting that relative to its peers, you can purchase CBG’s stock for a lower price right now. CBG is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 3% has over the past couple of years showing CBG’s capability