Companies that are recently trading at a market price lower than their real values include AEM Holdings and CITIC Envirotech. 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.

AEM Holdings Ltd (SGX:AWX)

AEM Holdings Ltd, an investment holding company, provides solutions in equipment systems; and precision components and related manufacturing services for various industries. AEM Holdings is run by CEO Lew Siang Cher. With the stock’s market cap sitting at SGD SGD423.01M, it comes under the small-cap stocks category

AWX’s shares are now trading at -60% below its actual level of $16.08, at the market price of S$6.41, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. Furthermore, AWX’s PE ratio stands at around 13.24x compared to its index peer level of, 14.29x indicating that relative to other stocks in the industry, AWX’s shares can be purchased for a lower price. AWX is also strong financially, with short-term assets covering liabilities in the near future as well as in the long run. AWX also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. Interested in AEM Holdings? Find out more here.

CITIC Envirotech Ltd. (SGX:CEE)

CITIC Envirotech Ltd. provides integrated water solutions in the People’s Republic of China, the United States, and Malaysia. Formed in 1996, and now run by YuCheng Lin, the company now has 1,700 employees and has a market cap of SGD SGD1.67B, putting it in the small-cap group.

CEE’s stock is currently hovering at around -67% less than its actual level of $2.22, at a price tag of S$0.73, based on my discounted cash flow model. This mismatch indicates a chance to invest in CEE at a discounted price. Also, CEE’s PE ratio is around 14.31x against its its Commercial Services peer level of, 14.63x suggesting that relative to its competitors, we can buy CEE’s stock at a cheaper price today. CEE is also strong financially, with near-term assets able to cover upcoming and long-term liabilities. The stock’s debt-to equity ratio of 43.98% has been declining over the past couple of years demonstrating its capability to reduce its debt obligations year on year. Continue research on CITIC Envirotech here.

Combine Will International Holdings Limited (SGX:N0Z)

Combine Will International Holdings Limited, an investment holding company, operates as an original design manufacturer (ODM)/original equipment manufacturer (OEM) of corporate premiums, toys, and consumer products. Started in 1992, and now led by CEO Jo Tak Tam, the company now has 10,000 employees and has a market cap of SGD SGD30.71M, putting it in the small-cap category.