Stocks, such as Sylvania Platinum and Syncona, are trading at a value below what they may actually be worth. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Sylvania Platinum Limited (AIM:SLP)
Sylvania Platinum Limited invests in mineral exploration and mineral treatment projects in South Africa. Sylvania Platinum is currently led by CEO Terence McConnachie. The company currently has a market cap of GBP £37.55M, putting it in the small-cap group
SLP’s shares are now floating at around -41% beneath its value of $0.22, at a price tag of $0.13, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Additionally, SLP’s PE ratio stands at around 5.6x against its its metals and mining peer level of 13.9x, meaning that relative to other stocks in the industry, we can purchase SLP’s shares for cheaper. SLP is also strong financially, as short-term assets amply cover upcoming and long-term liabilities. SLP also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility.
Syncona Limited (LSE:SYNC)
Syncona Limited was formerly known as BACIT Limited. Syncona was started in 2012 and with the company’s market cap sitting at GBP £1.23B, it falls under the small-cap stocks category.
SYNC’s stock is now hovering at around -64% lower than its actual level of £5.19, at a price tag of £1.88, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Additionally, SYNC’s PE ratio is around 5.5x relative to its capital markets peer level of 17.9x, indicating that relative to its peers, SYNC’s stock can be bought at a cheaper price. SYNC is also a financially healthy company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. SYNC also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility.
Mothercare plc (LSE:MTC)
Mothercare plc operates as a multi-channel retailer, franchisor, and wholesaler of products for mothers-to-be, babies, and children under the Mothercare and Early Learning Centre brands in the United Kingdom and internationally. Formed in 1961, and headed by CEO Mark Newton-Jones, the company size now stands at 5,244 people and with the company’s market capitalisation at GBP £141.78M, we can put it in the small-cap stocks category.