3 ASX Stocks That Could Be Trading Below Their Estimated Value In March 2025

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As the Australian market experiences fluctuations, with the ASX200 closing down 0.38% and sectors like Energy showing resilience while Real Estate and IT face challenges, investors are keenly observing opportunities that may arise from these shifts. In such a dynamic environment, identifying stocks that could be trading below their estimated value becomes crucial for those looking to capitalize on potential market inefficiencies and sector-specific trends.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

Acrow (ASX:ACF)

A$1.115

A$2.01

44.5%

Nido Education (ASX:NDO)

A$0.825

A$1.58

47.9%

Domino's Pizza Enterprises (ASX:DMP)

A$27.07

A$51.76

47.7%

South32 (ASX:S32)

A$3.47

A$6.39

45.7%

Charter Hall Group (ASX:CHC)

A$16.80

A$31.85

47.3%

SciDev (ASX:SDV)

A$0.455

A$0.82

44.3%

PointsBet Holdings (ASX:PBH)

A$1.08

A$2.16

49.9%

Polymetals Resources (ASX:POL)

A$0.855

A$1.68

49%

ReadyTech Holdings (ASX:RDY)

A$2.66

A$5.09

47.7%

Sandfire Resources (ASX:SFR)

A$11.17

A$20.59

45.7%

Click here to see the full list of 40 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

ALS

Overview: ALS Limited offers professional technical services in testing, measurement, and inspection across various regions including Africa, Asia/Pacific, Europe, the Middle East, and the Americas with a market cap of A$7.67 billion.

Operations: The company's revenue is derived from two main segments: Commodities, which contributes A$1.08 billion, and Life Sciences Excluding Nuvisan, accounting for A$1.63 billion.

Estimated Discount To Fair Value: 29.4%

ALS is trading at A$15.72, 29.4% below its estimated fair value of A$22.26, indicating potential undervaluation based on cash flows despite a decline in profit margins to 0.2%. Earnings are forecast to grow significantly at 32.1% annually, outpacing the Australian market's growth rate of 12%. However, ALS carries a high level of debt and recent board changes may influence strategic direction with Catharine Farrow's appointment as an independent Non-Executive Director.

ASX:ALQ Discounted Cash Flow as at Mar 2025
ASX:ALQ Discounted Cash Flow as at Mar 2025

Flight Centre Travel Group

Overview: Flight Centre Travel Group Limited operates as a travel retailer offering services for leisure and corporate sectors across multiple regions including Australia, New Zealand, the Americas, Europe, the Middle East, Africa, and Asia with a market cap of A$3.22 billion.