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In the wake of a notable rally in U.S. stocks, driven by expectations of economic growth and tax reforms following the recent election, global markets are experiencing significant shifts. With major indices like the S&P 500 reaching record highs, investors are eyeing opportunities that align with these evolving market dynamics. In this context, identifying undervalued stocks becomes crucial as they may offer potential value amid changing economic policies and interest rate adjustments.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Shenzhen King Explorer Science and Technology (SZSE:002917) | CN¥9.53 | CN¥18.84 | 49.4% |
| UMB Financial (NasdaqGS:UMBF) | US$123.80 | US$245.87 | 49.6% |
| NBT Bancorp (NasdaqGS:NBTB) | US$50.32 | US$99.93 | 49.6% |
| Decisive Dividend (TSXV:DE) | CA$6.18 | CA$12.23 | 49.5% |
| JYP Entertainment (KOSDAQ:A035900) | ₩53700.00 | ₩106760.01 | 49.7% |
| XPEL (NasdaqCM:XPEL) | US$45.62 | US$91.03 | 49.9% |
| Pinterest (NYSE:PINS) | US$29.98 | US$59.53 | 49.6% |
| GRCS (TSE:9250) | ¥1500.00 | ¥2976.24 | 49.6% |
| Medios (XTRA:ILM1) | €14.88 | €29.67 | 49.8% |
| Hotel ShillaLtd (KOSE:A008770) | ₩36900.00 | ₩73388.97 | 49.7% |
Let's explore several standout options from the results in the screener.
Studio Dragon
Overview: Studio Dragon Corporation is a drama studio that produces and provides drama content for traditional and new media platforms, with a market cap of ₩1.28 trillion.
Operations: The company generates revenue of ₩580.60 billion from its Television Programming & Distribution segment.
Estimated Discount To Fair Value: 38.8%
Studio Dragon is trading at ₩42,450, significantly below its estimated fair value of ₩69,417.9. While revenue growth of 14.5% annually lags behind the 20% mark, it surpasses the Korean market's average of 9.9%. Earnings are projected to grow substantially at 42.6% per year compared to the market's 29%. Despite a decline in profit margins from last year and low future ROE forecasts, Studio Dragon remains undervalued based on cash flows.
SmartCraft
Overview: SmartCraft ASA offers software solutions tailored for the construction industry in Norway, Sweden, and Finland, with a market capitalization of NOK5.06 billion.
Operations: Revenue Segments (in millions of NOK):
Estimated Discount To Fair Value: 23%
SmartCraft is trading at NOK 30.2, below its estimated fair value of NOK 39.2, suggesting it is undervalued based on cash flows. Despite a decline in net income from last year, the company's revenue growth of 15.4% annually outpaces the Norwegian market's average of 2.2%. Earnings are expected to grow significantly at 26.9% per year over the next three years, though insider selling has been significant recently and future ROE forecasts remain low at 15.5%.