1pm and BT Group are companies that are currently trading below what they’re actually worth. 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.

1pm PLC (AIM:OPM)

1pm plc provides financial services to the small and medium sized enterprises in the United Kingdom. Started in 2000, and headed by CEO R. Smith, the company currently employs 158 people and with the company’s market cap sitting at GBP £41.24M, it falls under the small-cap category.

OPM’s stock is currently hovering at around -39% under its true level of £0.78, at the market price of £0.48, according to my discounted cash flow model. The divergence signals an opportunity to buy OPM shares at a low price. What’s even more appeal is that OPM’s PE ratio is trading at around 7.6x while its diversified financial peer level trades at 13.2x, suggesting that relative to other stocks in the industry, we can invest in OPM at a lower price. OPM is also strong financially, as current assets can cover liabilities in the near term and over the long run.

More detail on 1pm here.

BT Group plc (LSE:BT.A)

BT Group plc provides communications services worldwide. Founded in 2001, and run by CEO Gavin Patterson, the company provides employment to 106,400 people and with the stock’s market cap sitting at GBP £22.61B, it comes under the large-cap stocks category.

BT.A’s stock is currently trading at -51% below its actual level of £4.73, at a price of £2.31, based on my discounted cash flow model. This mismatch signals an opportunity to buy BT.A shares at a discount. Moreover, BT.A’s PE ratio is around 13.6x relative to its telecom peer level of 20.9x, indicating that relative to its comparable set of companies, we can purchase BT.A’s shares for cheaper. BT.A is also in good financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. Finally, its debt relative to equity is 189%, which has been reducing for the past few years showing BT.A’s capacity to pay down its debt. More on BT Group here.

Caribbean Investment Holdings Limited (AIM:CIHL)

Caribbean Investment Holdings Limited, through its subsidiaries, provides banking and financial services in Belize and internationally. Caribbean Investment Holdings is run by CEO Lyndon Guiseppi. With a current market cap of GBP £19.41M, we can put CIHL in the small-cap group