3 ASX Stocks That Could Be Trading At A Discount
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Over the last 7 days, the Australian market has experienced a 1.5% drop, though it remains up by 19% over the past year with earnings forecasted to grow by 12% annually. In this context, identifying stocks that may be trading at a discount can offer potential opportunities for investors looking to capitalize on undervalued assets in a growing market.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Data#3 (ASX:DTL) | A$7.36 | A$13.45 | 45.3% |
| Westgold Resources (ASX:WGX) | A$3.32 | A$6.28 | 47.1% |
| Praemium (ASX:PPS) | A$0.635 | A$1.19 | 46.8% |
| VEEM (ASX:VEE) | A$1.675 | A$3.22 | 47.9% |
| Ansell (ASX:ANN) | A$31.43 | A$57.95 | 45.8% |
| Ingenia Communities Group (ASX:INA) | A$4.90 | A$9.38 | 47.8% |
| Millennium Services Group (ASX:MIL) | A$1.145 | A$2.24 | 48.9% |
| Megaport (ASX:MP1) | A$7.10 | A$13.44 | 47.2% |
| Genesis Minerals (ASX:GMD) | A$2.56 | A$4.80 | 46.7% |
| Energy One (ASX:EOL) | A$5.64 | A$11.08 | 49.1% |
Here's a peek at a few of the choices from the screener.
Ansell
Overview: Ansell Limited is a global company that designs, sources, develops, manufactures, distributes, and sells hand and body protection solutions across various regions including the Asia Pacific, Europe, the Middle East, Africa, Latin America, the Caribbean, and North America with a market cap of A$4.55 billion.
Operations: The company's revenue is derived from two main segments: Healthcare, contributing $834.20 million, and Industrial (Including Specialty Markets), accounting for $785.10 million.
Estimated Discount To Fair Value: 45.8%
Ansell is trading at A$31.43, significantly below its estimated fair value of A$57.95, indicating potential undervaluation based on cash flows. Despite a forecasted revenue growth of 6.7% per year and earnings expected to rise by 22.5% annually, recent financial results show a decline in profit margins and net income due to large one-off items. The CFO's upcoming resignation adds uncertainty, while shareholder dilution has occurred over the past year.
Judo Capital Holdings
Overview: Judo Capital Holdings Limited, through its subsidiaries, provides a range of banking products and services tailored for small and medium businesses in Australia, with a market capitalization of A$2.09 billion.
Operations: Judo Capital Holdings Limited generates revenue of A$326.60 million from its banking segment, focusing on services for small and medium businesses in Australia.