3 ASX Stocks That May Be Trading At A Discount

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The Australian market recently saw a positive uptick, with the ASX closing up 0.7% at 7,999 points, driven by strong performances in sectors like Staples and Real Estate. In this environment of mixed sector outcomes, identifying undervalued stocks can be crucial for investors seeking opportunities; these are stocks that may not reflect their true potential value despite broader market movements.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

Acrow (ASX:ACF)

A$1.10

A$2.00

45%

Nido Education (ASX:NDO)

A$0.825

A$1.58

47.9%

Domino's Pizza Enterprises (ASX:DMP)

A$27.01

A$51.44

47.5%

Champion Iron (ASX:CIA)

A$5.26

A$9.22

42.9%

South32 (ASX:S32)

A$3.51

A$6.36

44.8%

Charter Hall Group (ASX:CHC)

A$17.06

A$31.92

46.5%

SciDev (ASX:SDV)

A$0.465

A$0.81

42.9%

PointsBet Holdings (ASX:PBH)

A$1.075

A$2.15

49.9%

ReadyTech Holdings (ASX:RDY)

A$2.60

A$5.07

48.7%

Sandfire Resources (ASX:SFR)

A$11.23

A$20.51

45.3%

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

We're going to check out a few of the best picks from our screener tool.

Charter Hall Group

Overview: Charter Hall Group is a prominent Australian fully integrated property investment and funds management company with a market capitalization of A$8.01 billion.

Operations: The company's revenue is derived from three primary segments: Funds Management (A$441.60 million), Property Investments (A$332.50 million), and Development Investments (A$45.30 million).

Estimated Discount To Fair Value: 46.5%

Charter Hall Group is trading at A$17.06, significantly below its estimated fair value of A$31.92, indicating it may be undervalued based on cash flows. The company reported strong net income growth for the half year ended December 2024, with earnings per share from continuing operations more than doubling compared to the previous year. Despite slower revenue growth forecasts of 13.4% annually, Charter Hall offers a reliable dividend yield and has upgraded its FY25 earnings guidance to 81 cents per security.

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

National Storage REIT

Overview: National Storage REIT is the largest self-storage provider in Australia and New Zealand, operating over 225 centers and serving more than 90,000 residential and commercial customers, with a market cap of A$3.05 billion.

Operations: The company's revenue segment consists of A$369.99 million from the operation and management of storage centres.