Stamford Land and Pacific Century Regional Developments are two of the companies on my list that I consider are undervalued. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Stamford Land Corporation Ltd (SGX:H07)
Stamford Land Corporation Ltd, an investment holding company, owns, operates, and manages luxury hotels in Singapore, Australia, and New Zealand. Stamford Land was established in 1935 and with the company’s market cap sitting at SGD SGD436.36M, it falls under the small-cap stocks category.
H07’s shares are now trading at -57% below its value of $1.17, at the market price of $0.51, according to my discounted cash flow model. The divergence signals an opportunity to buy H07 shares at a low price. Furthermore, H07’s PE ratio stands at around 10.6x compared to its hospitality peer level of 25.9x, suggesting that relative to its competitors, H07 can be bought at a cheaper price right now. H07 is also strong financially, as current assets can cover liabilities in the near term and over the long run. Finally, its debt relative to equity is 61%, which has been diminishing over the past couple of years signalling its ability to pay down its debt.
Pacific Century Regional Developments Limited (SGX:P15)
Pacific Century Regional Developments Limited, an investment holding company, provides business management and consultancy services primarily in Singapore, Hong Kong, and India. Pacific Century Regional Developments was formed in 1963 and with the market cap of SGD SGD980.40M, it falls under the small-cap category.
P15’s stock is currently hovering at around -36% beneath its intrinsic level of $0.58, at the market price of $0.37, based on my discounted cash flow model. This mismatch signals an opportunity to buy P15 shares at a discount. Additionally, P15’s PE ratio is around 9.1x relative to its diversified financial peer level of 17.9x, indicating that relative to its comparable set of companies, P15 can be bought at a cheaper price right now. P15 also has a healthy balance sheet, with short-term assets covering liabilities in the near future as well as in the long run.
Tai Sin Electric Limited (SGX:500)
Tai Sin Electric Limited, together with its subsidiaries, designs, develops, manufactures, and trades in cable and wire products. Established in 1980, and currently headed by CEO Boon Hock Lim, the company employs 1,000 people and with the company’s market capitalisation at SGD SGD176.38M, we can put it in the small-cap category.