Companies that are recently trading at a market price lower than their real values include Sam Woo Construction Group and China Digital Culture (Group). 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.

Sam Woo Construction Group Limited (SEHK:3822)

Sam Woo Construction Group Limited, an investment holding company, primarily provides foundation works and ancillary services in Hong Kong and Macau. Founded in 2012, and run by CEO Chun Kwok Lau, the company size now stands at 200 people and has a market cap of HKD HK$445.20M, putting it in the small-cap group.

3822’s shares are now hovering at around -72% beneath its intrinsic level of $0.96, at the market price of HK$0.27, based on my discounted cash flow model. This mismatch signals an opportunity to buy 3822 shares at a discount. In addition to this, 3822’s PE ratio is trading at 8.07x while its Construction peer level trades at, 13.6x implying that relative to its comparable set of companies, you can purchase 3822’s stock for a lower price right now. 3822 is also robust in terms of financial health, as short-term assets amply cover upcoming and long-term liabilities. The stock’s debt-to-equity ratio of 21.63% has been diminishing over the past couple of years indicating 3822’s ability to pay down its debt. Dig deeper into Sam Woo Construction Group here.

China Digital Culture (Group) Limited (SEHK:8175)

China Digital Culture (Group) Limited, an investment holding company, provides copyright content to end-users through various platforms in the People’s Republic of China. Founded in 2002, and currently run by Tung Chi Hsu, the company now has 100 employees and has a market cap of HKD HK$1.05B, putting it in the small-cap stocks category.

8175’s stock is now floating at around -77% lower than its true level of $2.35, at the market price of HK$0.54, according to my discounted cash flow model. The mismatch signals a potential chance to invest in 8175 at a discounted price. Also, 8175’s PE ratio is around 13.35x relative to its Internet peer level of, 23.92x suggesting that relative to its comparable company group, we can buy 8175’s stock at a cheaper price today. 8175 is also in good financial health, as current assets can cover liabilities in the near term and over the long run.

More on China Digital Culture (Group) here.