3 ASX Stocks That May Be Trading Below Their Intrinsic Value Estimates
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The ASX200 made a small recovery today after the torrid start to the week, closing up a quarter of a per cent to about 7700 points. Real Estate made the biggest recovery, adding nearly 1.3%, followed by Utilities and Telecommunications – which were both up around 1%. In such fluctuating market conditions, identifying stocks that may be trading below their intrinsic value can offer potential opportunities for investors seeking long-term growth. Here are three ASX stocks that might currently be undervalued based on intrinsic value estimates.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Elders (ASX:ELD) | A$9.08 | A$18.11 | 49.9% |
| Shine Justice (ASX:SHJ) | A$0.70 | A$1.34 | 47.9% |
| Regal Partners (ASX:RPL) | A$3.33 | A$6.39 | 47.9% |
| Nanosonics (ASX:NAN) | A$2.98 | A$5.84 | 49% |
| Infomedia (ASX:IFM) | A$1.62 | A$3.06 | 47.1% |
| HMC Capital (ASX:HMC) | A$7.63 | A$13.73 | 44.4% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Life360 (ASX:360) | A$15.10 | A$27.76 | 45.6% |
| Sandfire Resources (ASX:SFR) | A$8.31 | A$16.50 | 49.7% |
| Airtasker (ASX:ART) | A$0.27 | A$0.52 | 48.4% |
Underneath we present a selection of stocks filtered out by our screen.
Judo Capital Holdings
Overview: Judo Capital Holdings Limited offers a range of banking products and services tailored for small and medium-sized businesses in Australia, with a market cap of A$1.44 billion.
Operations: Judo Capital Holdings generates revenue of A$328.70 million from its banking segment, focusing on small and medium-sized businesses in Australia.
Estimated Discount To Fair Value: 13.2%
Judo Capital Holdings, recently added to the S&P/ASX 200 Index, is trading at A$1.3, roughly 12.5% below its estimated fair value of A$1.48. Despite a modest undervaluation based on discounted cash flows, Judo's earnings grew by 87% last year and are forecasted to grow significantly at 27% per year over the next three years, outpacing the broader Australian market's growth rate of 12.9%.
Nuix
Overview: Nuix Limited offers investigative analytics and intelligence software solutions across the Asia Pacific, the Americas, Europe, the Middle East, and Africa with a market cap of approximately A$1.01 billion.
Operations: The company's revenue from Software & Programming amounts to A$193.27 million.