Operations: The company generates revenue of $10.36 billion from its Business Services segment.

Estimated Discount To Fair Value: 19.4%

GXO Logistics is trading at US$58.07, below its estimated fair value of US$72.01, indicating potential undervaluation based on cash flows. Despite a high debt level and recent profit margin decline from 2.1% to 1.4%, GXO's earnings are forecast to grow significantly at 35% annually, surpassing the US market's growth rate of 15.9%. Recent strategic partnerships and technological advancements aim to enhance operational efficiency and support future revenue growth projections of 10.4% per year.

• Our growth report here indicates GXO Logistics may be poised for an improving outlook.

• Click to explore a detailed breakdown of our findings in GXO Logistics' balance sheet health report.

Spotify Technology

Overview: Spotify Technology S.A., along with its subsidiaries, offers audio streaming subscription services globally and has a market cap of approximately $75.10 billion.

Operations: Spotify generates revenue through its Premium segment, which accounts for €12.68 billion, and its Ad-Supported segment, contributing €1.79 billion.

Estimated Discount To Fair Value: 20.3%

Spotify Technology is trading at US$378, below its estimated fair value of US$474.09, suggesting undervaluation based on cash flows. The company became profitable this year with earnings expected to grow significantly at 30.9% annually, outpacing the US market. Recent partnerships like Cineverse's content distribution enhance Spotify's video offerings, potentially boosting user engagement and revenue growth forecasted at 12.5% per year despite past shareholder dilution concerns.

• In light of our recent growth report, it seems possible that Spotify Technology's financial performance will exceed current levels.

• Dive into the specifics of Spotify Technology here with our thorough financial health report.

Next Steps

• Navigate through the entire inventory of 947 Undervalued Stocks Based On Cash Flows here.

• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.

• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include IBSE:GARAN NYSE:GXO and NYSE:SPOT.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com