Stocks, such as Yuexiu Transport Infrastructure, trading at a market price below their true values are considered to be undervalued. There’s a few ways you can measure the value of a company – you can forecast how much money it will make in the future and base your valuation off of this, or you can look around at its peers of similar size and industry to roughly estimate what it should be worth. Below, I’ve created a list of companies that compare favourably in all criteria based on their most recent financial data, making them potentially good investments.

Yuexiu Transport Infrastructure Limited (SEHK:1052)

Yuexiu Transport Infrastructure Limited, together with its subsidiaries, invests in, develops, operates, and manages toll expressways and bridges in the People’s Republic of China. The company now has 1482 employees and has a market cap of HKD HK$10.07B, putting it in the large-cap group.

1052’s shares are currently hovering at around -55% less than its intrinsic value of ¥13.5, at a price tag of HK$6.02, according to my discounted cash flow model. This discrepancy gives us a chance to invest in 1052 at a discount. In addition to this, 1052’s PE ratio is currently around 8.58x while its Infrastructure peer level trades at, 9.58x implying that relative to other stocks in the industry, you can purchase 1052’s stock for a lower price right now. 1052 is also a financially robust company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.

Dig deeper into Yuexiu Transport Infrastructure here.

China Oriental Group Company Limited (SEHK:581)

China Oriental Group Company Limited, an investment holding company, manufactures and sells iron and steel products for downstream steel manufacturers in the People’s Republic of China. Established in 2003, and currently headed by CEO Jingyuan Han, the company provides employment to 10,600 people and with the stock’s market cap sitting at HKD HK$20.73B, it comes under the large-cap group.

581’s shares are now trading at -73% under its actual worth of ¥20.34, at the market price of HK$5.57, according to my discounted cash flow model. This discrepancy signals a potential opportunity to buy 581 shares at a low price. In terms of relative valuation, 581’s PE ratio stands at 6.91x while its Metals and Mining peer level trades at, 12.38x indicating that relative to its competitors, you can purchase 581’s stock for a lower price right now. 581 is also in good financial health, as short-term assets amply cover upcoming and long-term liabilities. Finally, its debt relative to equity is 16.28%, which has been diminishing over the past couple of years revealing 581’s ability to reduce its debt obligations year on year. More on China Oriental Group here.