In This Article:
As global markets show resilience with U.S. indexes nearing record highs and positive sentiment buoyed by strong labor market data, investors are keenly observing potential undervalued stock opportunities amid the broad-based gains. In this context, identifying stocks that may be undervalued involves analyzing their intrinsic value relative to current market prices, especially in sectors or regions experiencing unique economic pressures or growth prospects.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| NBT Bancorp (NasdaqGS:NBTB) | US$50.08 | US$99.93 | 49.9% |
| Truecaller (OM:TRUE B) | SEK47.98 | SEK95.84 | 49.9% |
| Nordic Waterproofing Holding (OM:NWG) | SEK172.40 | SEK344.25 | 49.9% |
| Kitron (OB:KIT) | NOK31.18 | NOK62.32 | 50% |
| CS Wind (KOSE:A112610) | ₩41600.00 | ₩83136.08 | 50% |
| PLAIDInc (TSE:4165) | ¥1604.00 | ¥3207.80 | 50% |
| Intermedical Care and Lab Hospital (SET:IMH) | THB4.94 | THB9.86 | 49.9% |
| Neosperience (BIT:NSP) | €0.57 | €1.14 | 50% |
| BATM Advanced Communications (LSE:BVC) | £0.188 | £0.38 | 50% |
| SBI Sumishin Net Bank (TSE:7163) | ¥2905.00 | ¥5793.18 | 49.9% |
Let's take a closer look at a couple of our picks from the screened companies.
Electrolux Professional
Overview: Electrolux Professional AB (publ) offers food service, beverage, and laundry products and solutions to various service facilities such as restaurants, hotels, healthcare, and educational institutions with a market cap of SEK18.99 billion.
Operations: The company generates revenue from its Laundry segment, which accounts for SEK4.70 billion, and its Food & Beverage segment, contributing SEK7.53 billion.
Estimated Discount To Fair Value: 32%
Electrolux Professional is trading 32% below its estimated fair value, suggesting it may be undervalued based on cash flows. Despite a high debt level, earnings are expected to grow significantly at 20.3% annually, outpacing the Swedish market's growth. Recent Q3 results show sales increased to SEK 2.93 billion from SEK 2.75 billion year-on-year, with net income rising to SEK 187 million from SEK 159 million. The launch of the NeoBlue Touch dishwasher could drive further revenue growth.
Vimian Group
Overview: Vimian Group AB (publ) operates in the global animal health sector and has a market capitalization of SEK23.18 billion.
Operations: The company generates revenue from several segments, including Medtech (€112.75 million), Diagnostics (€20.32 million), Specialty Pharma (€163.45 million), and Veterinary Services (€56.11 million).