Companies, such as Lion Rock Group, trading at a market price below their true values are considered to be undervalued. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.

Lion Rock Group Limited (SEHK:1127)

Lion Rock Group Limited, an investment holding company, provides printing services to international book publishers, trade, professional and educational publishing conglomerates, and print media companies. Established in 2005, and now led by CEO , the company provides employment to 1,336 people and with the stock’s market cap sitting at HKD HK$1.20B, it comes under the small-cap category.

1127’s stock is now trading at -73% below its intrinsic level of $5.76, at a price of HK$1.56, according to my discounted cash flow model. This discrepancy gives us a chance to invest in 1127 at a discount. Moreover, 1127’s PE ratio is currently around 8.13x against its its Commercial Services peer level of, 21.5x implying that relative to other stocks in the industry, 1127’s stock can be bought at a cheaper price. 1127 is also in good financial health, with near-term assets able to cover upcoming and long-term liabilities. The stock’s debt-to equity ratio of 6.76% has been falling for the last couple of years indicating 1127’s capacity to pay down its debt. Continue research on Lion Rock Group here.

Megalogic Technology Holdings Limited (SEHK:8242)

Megalogic Technology Holdings Limited, an investment holding company, operates as a fabless semiconductor company primarily in the People’s Republic of China, Korea, Taiwan, Russia, and internationally. Started in 2000, and currently run by Tak Wing Sung, the company currently employs 40 people and with the company’s market cap sitting at HKD HK$199.88M, it falls under the small-cap group.

8242’s shares are currently trading at -84% less than its actual level of $0.92, at the market price of HK$0.14, based on my discounted cash flow model. The mismatch signals a potential chance to invest in 8242 at a discounted price. In addition to this, 8242’s PE ratio stands at around 12.21x compared to its Semiconductor peer level of, 16.71x indicating that relative to its competitors, 8242’s stock can be bought at a cheaper price. 8242 is also strong in terms of its financial health, with near-term assets able to cover upcoming and long-term liabilities.