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Recent undervalued companies based on their current market price include China All Access (Holdings) and Tianyun International Holdings. There’s a few ways you can value a company. The most popular methods include discounting the company’s cash flows it is expected to create in the future, or comparing its price to its peers or the value of its assets. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good investments.
China All Access (Holdings) Limited (SEHK:633)
China All Access (Holdings) Limited, an investment holding company, provides communication application solutions and services in the People’s Republic of China. Established in 2007, and now run by Kwok Keung Shao, the company employs 1,664 people and with the company’s market capitalisation at HKD HK$3.76B, we can put it in the mid-cap stocks category.
633’s stock is currently trading at -47% lower than its intrinsic level of ¥3.52, at the market price of HK$1.88, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. Furthermore, 633’s PE ratio is trading at around 13.04x compared to its Communications peer level of, 14.92x indicating that relative to its competitors, we can buy 633’s stock at a cheaper price today. 633 is also in good financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
Interested in China All Access (Holdings)? Find out more here.
Tianyun International Holdings Limited (SEHK:6836)
Tianyun International Holdings Limited, an investment holding company, produces and sells processed fruit products; and trades fresh fruits in the People’s Republic of China and internationally. Formed in 2003, and now led by CEO Ziyuan Yang, the company employs 624 people and with the market cap of HKD HK$1.27B, it falls under the small-cap group.
6836’s shares are currently hovering at around -71% less than its actual level of ¥4.55, at a price of HK$1.30, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. Also, 6836’s PE ratio is trading at 8.37x while its Food peer level trades at, 16.25x meaning that relative to other stocks in the industry, we can invest in 6836 at a lower price. 6836 is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 21.60% has been declining for the past few years signalling its capacity to reduce its debt obligations year on year. More on Tianyun International Holdings here.