Companies that are recently trading at a market price lower than their real values include Polymetal International and Mears Group. There’s a few ways you can determine how much a company is actually worth. 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. The discrepancy between the price and value means investors have an opportunity to buy shares at a discount. Below are the stocks I believe are undervalued on all criteria, based on their latest financial data.
Polymetal International Plc (LSE:POLY)
Polymetal International plc operates as a precious metals mining company in the Russia Federation, Kazakhstan, and Armenia. Founded in 1998, and run by CEO Vitaly Nesis, the company employs 11,575 people and with the company’s market cap sitting at GBP £3.24B, it falls under the mid-cap category.
POLY’s shares are now floating at around -42% under its true level of $12.9, at a price of UK£7.54, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Also, POLY’s PE ratio stands at 12.71x relative to its index peer level of, 17.16x indicating that relative to its comparable set of companies, we can invest in POLY at a lower price. POLY is also in great financial shape, with current assets covering liabilities in the near term and over the long run.
Continue research on Polymetal International here.
Mears Group plc (LSE:MER)
Mears Group PLC, through its subsidiaries, provides a range of outsourced services to the public and private sectors in the United Kingdom. Founded in 1996, and run by CEO David Miles, the company size now stands at 12,600 people and with the stock’s market cap sitting at GBP £390.46M, it comes under the small-cap group.
MER’s shares are now trading at -39% below its true level of £6.22, at a price tag of UK£3.77, based on my discounted cash flow model. The mismatch signals a potential chance to invest in MER at a discounted price.
MER is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities.
More on Mears Group here.
Standard Life Aberdeen plc (LSE:SLA)
Standard Life Aberdeen plc provides asset management services in the United Kingdom, Europe, North America, and Asia. Started in 1825, and run by CEO Norman Skeoch, the company provides employment to 9,651 people and with the company’s market capitalisation at GBP £10.87B, we can put it in the large-cap category.