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Companies, such as Chasen Holdings, trading at a market price below their true values are considered to be undervalued. 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.
Chasen Holdings Limited (SGX:5NV)
Chasen Holdings Limited, an investment holding company, provides relocation, logistics, and technical and engineering services. Chasen Holdings was formed in 1995 and with the stock’s market cap sitting at SGD SGD27.68M, it comes under the small-cap stocks category.
5NV’s shares are currently floating at around -24% beneath its actual level of $0.1, at a price tag of S$0.072, according to my discounted cash flow model. signalling an opportunity to buy the stock at a low price. In addition to this, 5NV’s PE ratio is currently around 4.9x against its its Commercial Services peer level of, 11.44x implying that relative to its competitors, 5NV’s stock can be bought at a cheaper price. 5NV is also strong in terms of its financial health, as current assets can cover liabilities in the near term and over the long run.
Interested in Chasen Holdings? Find out more here.
ValueMax Group Limited (SGX:T6I)
ValueMax Group Limited, an investment holding company, provides pawn broking and money lending services. Started in 1988, and headed by CEO Hiang Nam Yeah, the company now has 141 employees and with the company’s market capitalisation at SGD SGD154.69M, we can put it in the small-cap group.
T6I’s stock is now trading at -33% below its value of $0.43, at a price of S$0.29, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Also, T6I’s PE ratio is trading at around 7.6x while its Consumer Finance peer level trades at, 17.12x suggesting that relative to its competitors, we can invest in T6I at a lower price. T6I is also strong in terms of its financial health, as short-term assets amply cover upcoming and long-term liabilities.
Interested in ValueMax Group? Find out more here.
Trek 2000 International Ltd (SGX:5AB)
Trek 2000 International Ltd, an investment holding company, engages in the research, design, development, and dealing of computer hardware, software, electronic components, and other related products. Trek 2000 International was established in 1999 and with the stock’s market cap sitting at SGD SGD48.76M, it comes under the small-cap category.