Top 3 Stocks Estimated To Be Below Their True Value In June 2024

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As global markets continue to navigate through a mix of political turmoil in Europe and mixed economic signals from major economies, investors are keenly watching for opportunities that may be undervalued in such a fluctuating landscape. In this context, identifying stocks that are estimated to be below their true value could offer potential avenues for those looking to invest amidst current market conditions.

Top 10 Undervalued Stocks Based On Cash Flows

Name

Current Price

Fair Value (Est)

Discount (Est)

Kuaishou Technology (SEHK:1024)

HK$49.35

HK$98.60

49.9%

Noble (NYSE:NE)

US$44.55

US$88.41

49.6%

RaySearch Laboratories (OM:RAY B)

SEK140.00

SEK279.05

49.8%

Componenta (HLSE:CTH1V)

€3.05

€6.07

49.8%

Cloudia Research (BIT:AGAIN)

€2.90

€5.79

49.9%

Guerbet (ENXTPA:GBT)

€36.10

€71.57

49.6%

Interojo (KOSDAQ:A119610)

?24900.00

?49536.65

49.7%

Musti Group Oyj (HLSE:MUSTI)

€25.40

€50.47

49.7%

HeartCore Enterprises (NasdaqCM:HTCR)

US$0.7092

US$1.40

49.5%

Loungers (AIM:LGRS)

£2.68

£5.33

49.7%

Click here to see the full list of 953 stocks from our Undervalued Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener

UPM-Kymmene Oyj

Overview: UPM-Kymmene Oyj operates globally in the forest-based bioindustry, with a market capitalization of approximately €18.11 billion.

Operations: UPM-Kymmene Oyj's revenue is generated through various segments including UPM Energy (€0.68 billion), UPM Fibres (€3.22 billion), UPM Plywood (€0.40 billion), UPM Raflatac (€1.50 billion), UPM Specialty Papers (€1.48 billion), and UPM Communication Papers (€3.32 billion).

Estimated Discount To Fair Value: 25.5%

UPM-Kymmene Oyj, priced at €33.95, is considered undervalued with a fair value estimate of €45.56 based on discounted cash flow analysis. Despite slower revenue growth projections at 3.8% annually versus the Finnish market's 3.1%, UPM's earnings are expected to increase by 22.8% per year, outpacing the local market forecast of 14.8%. However, its current dividend coverage is weak, and profit margins have declined from last year’s 13.1% to 4.7%. Recent executive changes and a stable dividend policy may impact future performance dynamics.

HLSE:UPM Discounted Cash Flow as at Jun 2024
HLSE:UPM Discounted Cash Flow as at Jun 2024

AIA Group

Overview: AIA Group Limited, together with its subsidiaries, offers life insurance-based financial services and has a market capitalization of approximately HK$622.20 billion.