Exploring Undervalued SGX Stocks With Intrinsic Discounts Ranging From 40.4% To 43.6%

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As global payment trends evolve, with a notable increase in digital transactions as seen in the UK's recent shift towards contactless and mobile payments, investors might look for opportunities where market shifts influence stock valuations. Understanding intrinsic value becomes crucial in identifying stocks that may be undervalued relative to their current market price, especially in markets reacting to changing economic landscapes.

Top 5 Undervalued Stocks Based On Cash Flows In Singapore

Name

Current Price

Fair Value (Est)

Discount (Est)

Singapore Technologies Engineering (SGX:S63)

SGD4.42

SGD7.42

40.4%

17LIVE Group (SGX:LVR)

SGD0.875

SGD1.53

42.8%

Winking Studios (Catalist:WKS)

SGD0.29

SGD0.51

43.1%

Hongkong Land Holdings (SGX:H78)

US$3.35

US$5.74

41.7%

Frasers Logistics & Commercial Trust (SGX:BUOU)

SGD1.00

SGD1.66

39.8%

Digital Core REIT (SGX:DCRU)

US$0.625

US$1.11

43.6%

Seatrium (SGX:5E2)

SGD1.50

SGD2.63

43.1%

Nanofilm Technologies International (SGX:MZH)

SGD0.935

SGD1.48

36.7%

Click here to see the full list of 8 stocks from our Undervalued SGX Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Seatrium

Overview: Seatrium Limited specializes in engineering solutions for the offshore, marine, and energy sectors with a market capitalization of SGD 5.11 billion.

Operations: The company generates revenue primarily through its activities in rigs and floaters, repairs and upgrades, offshore platforms, and specialized shipbuilding, totaling SGD 7.26 billion, alongside a smaller segment in ship chartering which contributes SGD 31.63 million.

Estimated Discount To Fair Value: 43.1%

Seatrium Limited, priced at S$1.50, trades notably below its estimated fair value of S$2.63, reflecting a substantial undervaluation based on cash flows. Despite regulatory scrutiny from Singapore authorities and leadership changes, the company is poised for robust growth with earnings expected to rise significantly in the coming years and revenue growth projected to outpace the local market. However, its return on equity is anticipated to remain low, potentially affecting long-term profitability.

SGX:5E2 Discounted Cash Flow as at Jul 2024
SGX:5E2 Discounted Cash Flow as at Jul 2024

Digital Core REIT

Overview: Digital Core REIT (SGX: DCRU) is a Singapore-listed real estate investment trust specializing in data centers, backed by Digital Realty, with a market capitalization of approximately $0.82 billion.

Operations: The revenue for the REIT's commercial segment amounts to $71.10 million.