In This Article:
As global markets react to the recent U.S. election results, with major indices reaching record highs and investors anticipating favorable economic policies, the focus on identifying undervalued stocks becomes increasingly pertinent. In this environment of optimism and potential policy shifts, discerning investors may find opportunities in stocks that appear to be priced below their intrinsic value, offering a chance to capitalize on market inefficiencies.
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¥9.29 | CN¥18.82 | 50.6% |
| 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% |
| XPEL (NasdaqCM:XPEL) | US$45.62 | US$91.03 | 49.9% |
| GRCS (TSE:9250) | ¥1461.00 | ¥3091.17 | 52.7% |
| Pinterest (NYSE:PINS) | US$29.98 | US$59.53 | 49.6% |
| JYP Entertainment (KOSDAQ:A035900) | ₩57800.00 | ₩50280.41 | -15% |
| Medios (XTRA:ILM1) | €14.88 | €29.67 | 49.8% |
| Hotel ShillaLtd (KOSE:A008770) | ₩38050.00 | ₩73345.57 | 48.1% |
Let's review some notable picks from our screened stocks.
BHG Group
Overview: BHG Group AB (publ) is a consumer e-commerce company operating in Sweden, Finland, Denmark, Norway, the rest of Europe, and internationally with a market cap of SEK3.30 billion.
Operations: The company's revenue segments include Value Home at SEK2.52 billion, Premium Living at SEK2.28 billion, and Home Improvement at SEK5.16 billion.
Estimated Discount To Fair Value: 34.8%
BHG Group's recent earnings report showed a reduced net loss of SEK 67.2 million for Q3 2024, a significant improvement from the previous year's SEK 1,308.8 million loss. Despite volatile share prices, BHG is trading at SEK 18.4, below its estimated fair value of SEK 28.24 and is considered undervalued by over 20% based on discounted cash flows. Revenue growth is expected to outpace the Swedish market average significantly over the next few years.
PAL GROUP Holdings
Overview: PAL GROUP Holdings CO., LTD. is involved in the planning, manufacture, wholesale, and retail of men's and women's clothing and accessories in Japan, with a market cap of ¥261.77 billion.
Operations: The company's revenue segments include the planning, manufacture, wholesale, and retail of men's and women's clothing and accessories in Japan.