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TSX Stocks That May Be Trading Below Their Estimated Value

In This Article:

As the Canadian market navigates a period of sideways consolidation and heightened volatility, investors are keenly aware of the importance of diversification and strategic rebalancing to fortify portfolios against potential corrections. In this environment, identifying stocks that may be trading below their estimated value can offer opportunities for those looking to capitalize on cyclical shifts and broadened market leadership.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name

Current Price

Fair Value (Est)

Discount (Est)

Tourmaline Oil (TSX:TOU)

CA$66.75

CA$128.26

48%

Docebo (TSX:DCBO)

CA$46.40

CA$89.15

48%

Decisive Dividend (TSXV:DE)

CA$6.15

CA$11.48

46.4%

Major Drilling Group International (TSX:MDI)

CA$8.22

CA$14.64

43.9%

Groupe Dynamite (TSX:GRGD)

CA$15.45

CA$28.26

45.3%

Electrovaya (TSX:ELVA)

CA$3.10

CA$5.96

48%

Quisitive Technology Solutions (TSXV:QUIS)

CA$0.57

CA$1.07

46.7%

Wishpond Technologies (TSXV:WISH)

CA$0.32

CA$0.57

43.8%

Enterprise Group (TSX:E)

CA$2.13

CA$4.15

48.6%

Condor Energies (TSX:CDR)

CA$1.82

CA$3.41

46.6%

Click here to see the full list of 29 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Aritzia

Overview: Aritzia Inc., along with its subsidiaries, designs, develops, and sells apparel and accessories for women in the United States and Canada, with a market cap of CA$7.62 billion.

Operations: The company generates revenue primarily from its apparel segment, which amounts to CA$2.52 billion.

Estimated Discount To Fair Value: 19.2%

Aritzia's current trading price of CA$66.64 is below its estimated fair value of CA$82.49, indicating potential undervaluation based on cash flows. Despite recent insider selling, the company's earnings are forecast to grow significantly at 41.1% annually, outpacing the Canadian market's 15.8%. Recent financial results showed strong performance with increased net income and sales compared to last year, enhancing its appeal as a cash flow-based investment opportunity in Canada.

TSX:ATZ Discounted Cash Flow as at Mar 2025
TSX:ATZ Discounted Cash Flow as at Mar 2025

Computer Modelling Group

Overview: Computer Modelling Group Ltd. is a software and consulting technology company that develops and licenses reservoir simulation and seismic interpretation software, with a market cap of CA$668.56 million.

Operations: The company generates revenue from two main segments: Seismic Solutions, contributing CA$37.62 million, and Reservoir & Production Solutions, contributing CA$90.44 million.