3 ASX Stocks Estimated To Be Up To 46.9% Below Intrinsic Value
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The Australian market has seen a positive trend, rising 1.7% over the last week and 12% over the past year, with earnings projected to grow by 12% annually in the coming years. In such a promising environment, identifying undervalued stocks can offer significant opportunities for investors looking to capitalize on potential growth.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Hansen Technologies (ASX:HSN) | A$4.35 | A$8.20 | 46.9% |
| Duratec (ASX:DUR) | A$1.415 | A$2.61 | 45.7% |
| MLG Oz (ASX:MLG) | A$0.655 | A$1.18 | 44.7% |
| Genesis Minerals (ASX:GMD) | A$2.11 | A$4.00 | 47.3% |
| Charter Hall Group (ASX:CHC) | A$15.79 | A$29.35 | 46.2% |
| Megaport (ASX:MP1) | A$7.51 | A$13.59 | 44.7% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Clover (ASX:CLV) | A$0.37 | A$0.72 | 48.5% |
| Ai-Media Technologies (ASX:AIM) | A$0.76 | A$1.42 | 46.5% |
| Superloop (ASX:SLC) | A$1.81 | A$3.31 | 45.4% |
Here we highlight a subset of our preferred stocks from the screener.
Domino's Pizza Enterprises
Overview: Domino's Pizza Enterprises Limited operates retail food outlets and has a market cap of approximately A$2.92 billion.
Operations: Domino's Pizza Enterprises Limited generates revenue primarily from its restaurants segment, which amounted to A$2.38 billion.
Estimated Discount To Fair Value: 22.5%
Domino's Pizza Enterprises is trading at A$32.11, significantly below its estimated fair value of A$41.42, suggesting it may be undervalued based on cash flows. Despite a high level of debt and recent shareholder dilution, earnings are expected to grow 20.49% annually over the next three years, outpacing the Australian market's growth rate of 12.3%. Recent legal issues related to alleged misleading conduct in Japan could impact investor sentiment but have not yet affected financial forecasts significantly.
Flight Centre Travel Group
Overview: Flight Centre Travel Group Limited offers travel retailing services for leisure and corporate clients across various regions including Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and internationally with a market cap of A$4.60 billion.
Operations: The company's revenue segments include A$1.35 billion from leisure travel services and A$1.11 billion from corporate travel services.
Estimated Discount To Fair Value: 18.6%