Trek 2000 International and GSH are two of the companies on my list that I consider are undervalued. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.
Trek 2000 International Ltd (SGX:5AB)
Trek 2000 International Ltd, an investment holding company, engages in the research, design, development, and dealing of computer hardware, software, electronic components, and other related products. Trek 2000 International was formed in 1999 and with the stock’s market cap sitting at SGD SGD88.79M, it comes under the small-cap category.
5AB’s shares are currently trading at -86% lower than its intrinsic value of $1.92, at a price tag of $0.28, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Moreover, 5AB’s PE ratio is trading at around 8.4x relative to its tech peer level of 12.1x, implying that relative to its comparable set of companies, we can buy 5AB’s stock at a cheaper price today. 5AB is also robust in terms of financial health, with short-term assets covering liabilities in the near future as well as in the long run. 5AB also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility.
GSH Corporation Limited (SGX:BDX)
GSH Corporation Limited, an investment holding company, engages in the development and sale of properties. The company was established in 2001 and has a market cap of SGD SGD989.26M, putting it in the small-cap group.
BDX’s stock is currently floating at around -95% below its actual worth of $9.2, at a price tag of $0.51, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. Additionally, BDX’s PE ratio is trading at around 3.9x compared to its real estate peer level of 10.6x, suggesting that relative to its comparable company group, you can purchase BDX’s stock for a lower price right now. BDX is also strong in terms of its financial health, with current assets covering liabilities in the near term and over the long run.
Captii Limited (SGX:AWV)
Captii Limited, an investment holding company, operates in the technology and telecommunication businesses in South East Asia, South Asia, the Middle East, Africa, and internationally. Formed in 1998, and now led by CEO Wan Kuan Ann, the company currently employs 161 people and with the company’s market cap sitting at SGD SGD18.22M, it falls under the small-cap group.