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In 2025, the Canadian stock market has faced volatility and softened growth outlooks, emphasizing the importance of diversification within portfolios. Amidst this environment, identifying undervalued stocks can present opportunities for long-term investors to add quality investments at potentially attractive prices.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Savaria (TSX:SIS) | CA$16.80 | CA$30.41 | 44.8% |
| Docebo (TSX:DCBO) | CA$43.51 | CA$85.72 | 49.2% |
| K92 Mining (TSX:KNT) | CA$12.06 | CA$19.81 | 39.1% |
| Thunderbird Entertainment Group (TSXV:TBRD) | CA$1.65 | CA$3.28 | 49.7% |
| VersaBank (TSX:VBNK) | CA$14.85 | CA$29.17 | 49.1% |
| Aya Gold & Silver (TSX:AYA) | CA$13.26 | CA$25.02 | 47% |
| Lithium Royalty (TSX:LIRC) | CA$4.35 | CA$6.68 | 34.9% |
| AtkinsRéalis Group (TSX:ATRL) | CA$70.53 | CA$103.92 | 32.1% |
| Condor Energies (TSX:CDR) | CA$1.80 | CA$3.45 | 47.9% |
| CAE (TSX:CAE) | CA$35.24 | CA$60.88 | 42.1% |
Here we highlight a subset of our preferred stocks from the screener.
Aya Gold & Silver
Overview: Aya Gold & Silver Inc. is involved in the exploration, evaluation, and development of precious metals projects in Morocco and has a market capitalization of CA$1.74 billion.
Operations: The company generates revenue primarily from its production activities at the Zgounder Silver Mine in Morocco, amounting to $40.85 million.
Estimated Discount To Fair Value: 47%
Aya Gold & Silver is trading at CA$13.26, significantly below its estimated fair value of CA$25.02, suggesting potential undervaluation based on cash flows. The company reported robust silver production and an updated mineral resource estimate at its Boumadine Project in Morocco, indicating substantial resource growth. Despite recent insider selling, Aya's earnings are forecasted to grow rapidly by 94.9% annually over the next three years, outpacing both revenue and market averages in Canada.
CAE
Overview: CAE Inc., along with its subsidiaries, offers simulation training and critical operations support solutions across various regions including Canada, the United States, the United Kingdom, Europe, Asia, Oceania, Africa, and the Rest of the Americas with a market cap of CA$11.24 billion.
Operations: The company's revenue is derived from two primary segments: Civil Aviation, contributing CA$2.68 billion, and Defense and Security, accounting for CA$1.88 billion.