3 Companies That May Be Trading Below Their Estimated Value

In This Article:

As the U.S. stock market experiences a period of optimism, with major indices like the S&P 500 and Nasdaq reaching their highest levels since February, investors are encouraged by positive inflation data and progress in China-U.S. trade talks. In such an environment, identifying companies that may be trading below their estimated value can present opportunities for investors looking to capitalize on potential market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name

Current Price

Fair Value (Est)

Discount (Est)

WesBanco (WSBC)

$31.755

$62.77

49.4%

TXO Partners (TXO)

$15.09

$29.91

49.6%

Shoals Technologies Group (SHLS)

$5.20

$10.39

50%

Provident Financial Services (PFS)

$17.08

$34.02

49.8%

Ligand Pharmaceuticals (LGND)

$113.42

$225.70

49.7%

Insteel Industries (IIIN)

$36.01

$72.02

50%

First Busey (BUSE)

$23.11

$45.56

49.3%

Constellium (CSTM)

$13.65

$27.00

49.4%

Associated Banc-Corp (ASB)

$24.02

$47.79

49.7%

ACNB (ACNB)

$42.88

$85.37

49.8%

Click here to see the full list of 174 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Ligand Pharmaceuticals

Overview: Ligand Pharmaceuticals Incorporated is a biopharmaceutical company that develops and licenses biopharmaceutical assets globally, with a market cap of $2.11 billion.

Operations: The company's revenue primarily comes from the development and licensing of biopharmaceutical assets, amounting to $181.49 million.

Estimated Discount To Fair Value: 49.7%

Ligand Pharmaceuticals, trading at US$113.42, is significantly undervalued based on discounted cash flow analysis with a fair value estimate of US$225.7. Despite a recent net loss of US$42.45 million in Q1 2025, revenue increased to US$45.33 million from the previous year. The company expects total revenue between US$180 million and US$200 million for 2025 and anticipates becoming profitable within three years, with earnings projected to grow over 64% annually.

LGND Discounted Cash Flow as at Jun 2025
LGND Discounted Cash Flow as at Jun 2025

LPL Financial Holdings

Overview: LPL Financial Holdings Inc. offers a comprehensive platform of brokerage and investment advisory services to independent financial advisors and institutional advisors across the United States, with a market cap of approximately $30.33 billion.

Operations: The company's revenue primarily comes from its brokerage segment, which generated $12.92 billion.

Estimated Discount To Fair Value: 28.9%