3 TSX Stocks Estimated To Be 25% To 32% Below Intrinsic Value

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As trade tensions ease with new agreements and the Bank of Canada maintains a neutral monetary policy, the Canadian market is experiencing a period of cautious optimism. In this environment, identifying stocks that are trading below their intrinsic value can be an advantageous strategy for investors looking to capitalize on potential market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name

Current Price

Fair Value (Est)

Discount (Est)

K92 Mining (TSX:KNT)

CA$13.33

CA$23.69

43.7%

Docebo (TSX:DCBO)

CA$36.94

CA$61.80

40.2%

Badger Infrastructure Solutions (TSX:BDGI)

CA$42.60

CA$76.80

44.5%

Enterprise Group (TSX:E)

CA$1.71

CA$3.08

44.5%

VersaBank (TSX:VBNK)

CA$15.47

CA$30.62

49.5%

Lithium Royalty (TSX:LIRC)

CA$5.43

CA$8.51

36.2%

Tantalus Systems Holding (TSX:GRID)

CA$2.45

CA$4.74

48.3%

Kits Eyecare (TSX:KITS)

CA$11.60

CA$22.45

48.3%

Tidewater Midstream and Infrastructure (TSX:TWM)

CA$0.215

CA$0.38

43.2%

CAE (TSX:CAE)

CA$36.09

CA$57.11

36.8%

Click here to see the full list of 19 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

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

Aris Mining

Overview: Aris Mining Corporation, with a market cap of CA$1.46 billion, is involved in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana.

Operations: Aris Mining Corporation generates its revenue through the acquisition, exploration, development, and operation of gold properties located in Canada, Colombia, and Guyana.

Estimated Discount To Fair Value: 26.5%

Aris Mining's recent financial performance highlights its potential as an undervalued stock based on cash flows. The company reported Q1 2025 sales of US$157.53 million, a significant increase from the previous year, with net income rising to US$2.37 million from a loss previously. Despite shareholder dilution, Aris is trading at CA$8.45, below the estimated fair value of CA$11.5, and forecasts suggest robust earnings growth significantly outpacing the Canadian market average over the next three years.

TSX:ARIS Discounted Cash Flow as at May 2025
TSX:ARIS Discounted Cash Flow as at May 2025

Kinaxis

Overview: Kinaxis Inc. offers cloud-based subscription software for supply chain operations across the United States, Europe, Asia, and Canada, with a market cap of CA$5.44 billion.

Operations: The company generates revenue from its software and programming segment, amounting to $496.53 million.

Estimated Discount To Fair Value: 25%