Undervalued companies, such as Independent Investment Trust and TBC Bank Group, trade at a price less than their true values. 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.

The Independent Investment Trust PLC (LSE:IIT)

The Independent Investment Trust PLC is a publically owned investment manager. Independent Investment Trust was formed in 2000 and has a market cap of GBP £410.48M, putting it in the small-cap stocks category.

IIT’s stock is currently floating at around -77% less than its true level of £32.13, at the market price of UK£7.36, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. In terms of relative valuation, IIT’s PE ratio stands at around 3.4x against its its Capital Markets peer level of, 15.65x indicating that relative to its competitors, we can invest in IIT at a lower price. IIT is also strong in terms of its financial health, with current assets covering liabilities in the near term and over the long run. IIT has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Interested in Independent Investment Trust? Find out more here.

TBC Bank Group PLC (LSE:TBCG)

TBC Bank Group PLC, through its subsidiaries, provides banking, leasing, brokerage, and card processing services to corporate and individual customers in Georgia. Started in 1992, and run by CEO Vakhtang Butskhrikidze, the company now has 6,990 employees and with the company’s market capitalisation at GBP £1.00B, we can put it in the small-cap group.

TBCG’s stock is currently trading at -52% below its real value of GEL38.53, at the market price of UK£18.60, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. In addition to this, TBCG’s PE ratio is around 9.52x relative to its Banks peer level of, 15.94x indicating that relative to its comparable company group, we can invest in TBCG at a lower price. TBCG is also in good financial health, with current assets covering liabilities in the near term and over the long run.

More on TBC Bank Group here.

Epwin Group PLC (AIM:EPWN)

Epwin Group Plc manufactures and sells building products in the United Kingdom, rest of Europe, and internationally. Established in 1976, and headed by CEO Jonathan Bednall, the company currently employs 2,592 people and with the market cap of GBP £116.91M, it falls under the small-cap category.