3 ASX Stocks Estimated To Be Trading At Up To 49.7% Below Intrinsic Value
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The Australian market has climbed 1.7% in the last 7 days and 17% over the past year, with earnings forecast to grow by 12% annually. In this promising environment, identifying stocks trading below their intrinsic value 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) |
| Mader Group (ASX:MAD) | A$5.24 | A$10.41 | 49.7% |
| EZZ Life Science Holdings (ASX:EZZ) | A$4.52 | A$8.77 | 48.4% |
| DroneShield (ASX:DRO) | A$1.41 | A$2.67 | 47.3% |
| Duratec (ASX:DUR) | A$1.37 | A$2.59 | 47.1% |
| Genesis Minerals (ASX:GMD) | A$2.04 | A$3.93 | 48.1% |
| Little Green Pharma (ASX:LGP) | A$0.085 | A$0.17 | 49.8% |
| Smart Parking (ASX:SPZ) | A$0.66 | A$1.31 | 49.4% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| MedAdvisor (ASX:MDR) | A$0.435 | A$0.85 | 48.8% |
| Superloop (ASX:SLC) | A$1.685 | A$3.31 | 49.1% |
Underneath we present a selection of stocks filtered out by our screen.
Codan
Overview: Codan Limited (ASX:CDA) develops technology solutions for United Nations organizations, security and military groups, government departments, individuals, and small-scale miners with a market cap of A$2.96 billion.
Operations: Codan's revenue segments include Communications at A$326.91 million and Metal Detection at A$219.85 million.
Estimated Discount To Fair Value: 10.3%
Codan Limited, recently added to the S&P/ASX 200 Index, reported strong financial performance with sales of A$550.46 million and net income of A$81.39 million for FY2024. The company is trading at A$16.33, below its estimated fair value of A$18.21, suggesting it may be undervalued based on cash flows. With earnings forecasted to grow at 17.6% annually, Codan's growth prospects outpace the broader Australian market’s expected growth rates.
IDP Education
Overview: IDP Education Limited specializes in placing students into educational institutions across Australia, the United Kingdom, the United States, Canada, New Zealand, and Ireland and has a market cap of A$4.44 billion.
Operations: The company's revenue from Educational Services - Education & Training Services amounts to A$1.04 billion.
Estimated Discount To Fair Value: 42.8%
IDP Education is trading at A$15.95, significantly below its estimated fair value of A$27.89, indicating it is undervalued based on discounted cash flow analysis. Despite a forecasted revenue growth of 7.4% per year and earnings growth of 14.1% annually, recent financial results showed a decline in net income to A$132.75 million from A$148.52 million last year, with diluted EPS dropping to A$0.4758 from A$0.5328 previously.