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TSX Stocks That May Be Trading Below Estimated Value In October 2024

In This Article:

As the Canadian market continues to reach new heights, buoyed by optimism surrounding central bank policies and robust corporate earnings, investors are keenly observing how these factors interplay with potential election-driven volatility. In this environment of cautious optimism, identifying stocks that may be trading below their estimated value can present unique opportunities for those looking to align their portfolios with solid fundamentals amidst broader market trends.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name

Current Price

Fair Value (Est)

Discount (Est)

Computer Modelling Group (TSX:CMG)

CA$11.41

CA$22.00

48.1%

goeasy (TSX:GSY)

CA$183.37

CA$362.97

49.5%

Savaria (TSX:SIS)

CA$22.35

CA$41.08

45.6%

Real Matters (TSX:REAL)

CA$9.05

CA$17.71

48.9%

Endeavour Mining (TSX:EDV)

CA$31.96

CA$62.41

48.8%

Viemed Healthcare (TSX:VMD)

CA$10.45

CA$20.08

48%

Kinaxis (TSX:KXS)

CA$158.50

CA$280.37

43.5%

Bragg Gaming Group (TSX:BRAG)

CA$6.63

CA$10.64

37.7%

Blackline Safety (TSX:BLN)

CA$5.91

CA$11.02

46.4%

Boyd Group Services (TSX:BYD)

CA$206.87

CA$337.90

38.8%

Click here to see the full list of 24 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Boyd Group Services

Overview: Boyd Group Services Inc. operates non-franchised collision repair centers across North America and has a market cap of CA$4.40 billion.

Operations: The company generates revenue of $3.04 billion from its automotive collision repair and related services segment in North America.

Estimated Discount To Fair Value: 38.8%

Boyd Group Services is trading at CA$206.87, significantly below its estimated fair value of CA$337.9, suggesting it may be undervalued based on cash flows. Despite a forecasted revenue growth of 9.8% annually, earnings are expected to grow substantially at 44.6% per year, outpacing the Canadian market's average growth rate. However, recent financial results show declining net income and earnings per share compared to last year, which might concern potential investors looking for stability in cash flow metrics.

TSX:BYD Discounted Cash Flow as at Oct 2024
TSX:BYD Discounted Cash Flow as at Oct 2024

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$911.01 million.

Operations: The company's revenue is derived from CA$90.29 million in reservoir simulation and seismic interpretation software licensing and related services.