Exploring Three ASX Stocks With Intrinsic Discounts Ranging From 39.7% To 44.5%
In This Article:
Over the past year, the Australian market has seen an uplift of 8.4%, with earnings projected to grow by 13% annually. In such a thriving environment, identifying stocks that are trading below their intrinsic value can offer attractive opportunities for investors looking for potential growth at a discounted price.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| MaxiPARTS (ASX:MXI) | A$1.995 | A$3.94 | 49.4% |
| Ansell (ASX:ANN) | A$27.43 | A$50.71 | 45.9% |
| Count (ASX:CUP) | A$0.61 | A$1.18 | 48.3% |
| VEEM (ASX:VEE) | A$1.78 | A$3.53 | 49.6% |
| IPH (ASX:IPH) | A$6.06 | A$11.79 | 48.6% |
| hipages Group Holdings (ASX:HPG) | A$1.06 | A$2.06 | 48.5% |
| ReadyTech Holdings (ASX:RDY) | A$3.29 | A$6.21 | 47% |
| Atturra (ASX:ATA) | A$0.81 | A$1.50 | 46.1% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Lotus Resources (ASX:LOT) | A$0.28 | A$0.56 | 49.9% |
Underneath we present a selection of stocks filtered out by our screen.
Domino's Pizza Enterprises
Overview: Domino's Pizza Enterprises Limited is a company that operates retail food outlets, with a market capitalization of approximately A$3.06 billion.
Operations: The company generates its revenue primarily from restaurant operations, totaling A$2.48 billion.
Estimated Discount To Fair Value: 40.7%
Domino's Pizza Enterprises (DMP) is currently trading at A$33.61, which is 40.7% below the estimated fair value of A$56.69, highlighting its undervaluation based on discounted cash flow analysis. Despite this, DMP faces challenges such as a high debt level and lower profit margins year-over-year, now at 2.2%. However, it shows promising growth prospects with expected significant earnings growth over the next three years and a forecasted high return on equity of 27.7%.
Infomedia
Overview: Infomedia Ltd is a technology company that provides electronic parts catalogues, service quoting software, and e-commerce solutions to the automotive industry globally, with a market capitalization of A$620.87 million.
Operations: The company generates A$136.58 million in revenue from its publishing and periodicals segment.
Estimated Discount To Fair Value: 39.7%
Infomedia Ltd, priced at A$1.66, appears undervalued with a fair value estimate of A$2.75, reflecting a significant discount. The company's earnings are projected to grow by 27.83% annually, outpacing the Australian market forecast of 13.4%. Additionally, its revenue growth at 7.9% yearly also exceeds the national average of 5.6%. Despite these positives, it's essential to note the impact of substantial one-off items on its financial results and recent executive changes that could influence future performance.