Three Stocks That Might Be Estimated Below Their True Value In December 2024

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As of December 2024, global markets have been characterized by a divergence in major U.S. stock indexes, with growth stocks significantly outperforming value stocks amid record highs for the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite. In this environment of mixed economic signals and geopolitical uncertainties, identifying undervalued stocks requires a focus on companies that demonstrate strong fundamentals and potential for growth despite current market volatility.

Top 10 Undervalued Stocks Based On Cash Flows

Name

Current Price

Fair Value (Est)

Discount (Est)

Round One (TSE:4680)

¥1266.00

¥2527.81

49.9%

NBT Bancorp (NasdaqGS:NBTB)

US$50.06

US$99.93

49.9%

Proya CosmeticsLtd (SHSE:603605)

CN¥92.22

CN¥184.30

50%

BMC Medical (SZSE:301367)

CN¥68.53

CN¥136.81

49.9%

Acerinox (BME:ACX)

€9.98

€19.93

49.9%

Grupo Traxión. de (BMV:TRAXION A)

MX$19.71

MX$39.28

49.8%

North Electro-OpticLtd (SHSE:600184)

CN¥11.08

CN¥22.00

49.6%

Sands China (SEHK:1928)

HK$20.20

HK$40.33

49.9%

Equifax (NYSE:EFX)

US$266.82

US$530.98

49.7%

iFLYTEKLTD (SZSE:002230)

CN¥51.82

CN¥102.95

49.7%

Click here to see the full list of 884 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

TXT e-solutions

Overview: TXT e-solutions S.p.A., along with its subsidiaries, offers software and service solutions both in Italy and internationally, with a market cap of €429.64 million.

Operations: The company's revenue segments consist of Smart Solutions (€57.03 million), Digital Advisory (€43.22 million), and Software Engineering (€184.35 million).

Estimated Discount To Fair Value: 42.8%

TXT e-solutions is trading at €35.55, significantly below its estimated fair value of €62.11, indicating potential undervaluation based on cash flows. The company reported strong earnings growth with third-quarter sales reaching €81.37 million and net income of €4.02 million, up from last year. Despite shareholder dilution and debt coverage concerns, TXT's earnings are expected to grow at 22.93% annually, outpacing the Italian market's forecasted growth rate of 7.1%.

BIT:TXT Discounted Cash Flow as at Dec 2024
BIT:TXT Discounted Cash Flow as at Dec 2024

Outokumpu Oyj

Overview: Outokumpu Oyj is a company that produces and sells stainless steel products across Finland, Europe, North America, the Asia-Pacific, and internationally with a market cap of €1.38 billion.

Operations: The company's revenue segments include €1.72 billion from the Americas, €491 million from Ferrochrome, and €4.21 billion from Europe (excluding Ferrochrome).