Brook Crompton Holdings and China Sunsine Chemical Holdings may be trading at prices below their likely values. This suggests that these stocks are undervalued, meaning we can benefit when the stock price moves to its true valuation. 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.

Brook Crompton Holdings Ltd. (SGX:AWC)

Brook Crompton Holdings Ltd., an investment holding company, distributes electric motors. Brook Crompton Holdings was formed in 1947 and with the market cap of SGD SGD27.30M, it falls under the small-cap stocks category.

AWC’s stock is currently hovering at around -51% below its value of $1.56, at a price tag of S$0.77, based on its expected future cash flows. This mismatch indicates a chance to invest in AWC at a discounted price. Additionally, AWC’s PE ratio is currently around 7.86x against its its Trade Distributors peer level of, 21.68x indicating that relative to its peers, AWC’s shares can be purchased for a lower price. AWC is also strong financially, as current assets can cover liabilities in the near term and over the long run. Finally, its debt relative to equity is 6.06%, which has been dropping over the past couple of years demonstrating its capability to reduce its debt obligations year on year. More detail on Brook Crompton Holdings here.

China Sunsine Chemical Holdings Ltd. (SGX:CH8)

China Sunsine Chemical Holdings Ltd., an investment holding company, engages in the manufacture and sale of rubber chemical products in the People’s Republic of China, rest of Asia, the United States, Europe, and internationally. Established in 2006, and currently headed by CEO Jing Fu Liu, the company provides employment to 2,098 people and with the stock’s market cap sitting at SGD SGD663.79M, it comes under the small-cap stocks category.

CH8’s stock is currently hovering at around -44% beneath its actual value of ¥2.38, at a price tag of S$1.33, according to my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. What’s even more appeal is that CH8’s PE ratio stands at 9.04x while its Chemicals peer level trades at, 13.78x indicating that relative to other stocks in the industry, CH8 can be bought at a cheaper price right now. CH8 is also in good financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. CH8 also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Continue research on China Sunsine Chemical Holdings here.