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January 2025's Noteworthy Stocks Estimated To Be Below Fair Value

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As global markets navigate a period of mixed economic signals, including declining U.S. consumer confidence and fluctuating stock indices, investors are increasingly focused on identifying opportunities that may be undervalued amidst this volatility. In such an environment, stocks estimated to be below their fair value can present compelling opportunities for those looking to capitalize on potential market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

Name

Current Price

Fair Value (Est)

Discount (Est)

Lundin Gold (TSX:LUG)

CA$31.92

CA$63.81

50%

Tourmaline Oil (TSX:TOU)

CA$67.37

CA$134.34

49.9%

Bank BTPN Syariah (IDX:BTPS)

IDR935.00

IDR1869.73

50%

Strike CompanyLimited (TSE:6196)

¥3655.00

¥7284.35

49.8%

Camden National (NasdaqGS:CAC)

US$42.25

US$84.44

50%

S Foods (TSE:2292)

¥2737.00

¥5472.35

50%

Emporiki Eisagogiki Aftokiniton Ditrohon kai Mihanon Thalassis Societe Anonyme (ATSE:MOTO)

€2.76

€5.50

49.8%

Elekta (OM:EKTA B)

SEK61.80

SEK123.12

49.8%

Pluk Phak Praw Rak Mae (SET:OKJ)

THB15.50

THB30.86

49.8%

Vogo (ENXTPA:ALVGO)

€2.95

€5.87

49.8%

Click here to see the full list of 897 stocks from our Undervalued Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Saipem

Overview: Saipem SpA is a global provider of energy and infrastructure solutions with a market cap of €5.21 billion.

Operations: The company generates revenue from various segments, including Energy Carriers (€5.87 billion), Offshore Drilling (€1.40 billion), and Asset Based Services (€10.86 billion).

Estimated Discount To Fair Value: 43.1%

Saipem is trading at €2.66, significantly below its estimated fair value of €4.68, suggesting it may be undervalued based on cash flows. Despite forecasted revenue growth lagging the Italian market at 1.7% per year, earnings are expected to grow substantially at 25.2% annually over the next three years, outpacing the market's 6.9%. Saipem became profitable this year and has a high projected return on equity of 22.1% in three years.

BIT:SPM Discounted Cash Flow as at Jan 2025
BIT:SPM Discounted Cash Flow as at Jan 2025

Eastroc Beverage(Group)

Overview: Eastroc Beverage(Group) Co., Ltd. manufactures beverages in China and has a market cap of CN¥128.67 billion.

Operations: The company generates revenue of CN¥15.18 billion from the production, sales, and wholesale of beverages and pre-packaged foods in China.

Estimated Discount To Fair Value: 23.9%

Eastroc Beverage is trading at CN¥247.44, below its fair value estimate of CN¥325.2, highlighting potential undervaluation based on cash flows. Recent earnings for the nine months ended September 2024 show significant growth, with sales reaching CN¥12.56 billion and net income at CN¥2.71 billion, both up from the previous year. Revenue is expected to grow 22.4% annually, outpacing the Chinese market's 13.6%, though earnings growth may lag slightly behind market expectations.


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