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With Canada's election now behind it, a significant source of uncertainty has been removed, allowing policymakers to focus on trade and economic issues. As the newly formed government considers fiscal stimulus and potential interest rate cuts to support growth, investors may find opportunities in stocks that appear undervalued against intrinsic value estimates.
Top 10 Undervalued Stocks Based On Cash Flows In Canada
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Propel Holdings (TSX:PRL) | CA$29.57 | CA$44.34 | 33.3% |
| Badger Infrastructure Solutions (TSX:BDGI) | CA$40.52 | CA$75.71 | 46.5% |
| Docebo (TSX:DCBO) | CA$43.44 | CA$78.95 | 45% |
| Savaria (TSX:SIS) | CA$17.82 | CA$30.26 | 41.1% |
| Enterprise Group (TSX:E) | CA$1.61 | CA$2.85 | 43.5% |
| Lithium Royalty (TSX:LIRC) | CA$5.45 | CA$8.39 | 35% |
| Cameco (TSX:CCO) | CA$66.29 | CA$92.92 | 28.7% |
| AtkinsRéalis Group (TSX:ATRL) | CA$71.21 | CA$112.54 | 36.7% |
| Obsidian Energy (TSX:OBE) | CA$5.58 | CA$8.58 | 35% |
| CAE (TSX:CAE) | CA$35.01 | CA$57.11 | 38.7% |
Underneath we present a selection of stocks filtered out by our screen.
Cameco
Overview: Cameco Corporation supplies uranium for electricity generation and has a market cap of CA$27.91 billion.
Operations: The company's revenue segments consist of CA$2.73 billion from Uranium, CA$521.38 million from Fuel Services, and CA$3.01 billion from Westinghouse (WEC).
Estimated Discount To Fair Value: 28.7%
Cameco's recent earnings report shows a turnaround with a net income of CAD 69.76 million for Q1 2025, compared to a loss last year. The stock is trading at CA$66.29, significantly below its estimated fair value of CA$92.92, indicating it may be undervalued based on cash flows. Analysts expect robust earnings growth of 27.8% annually over the next three years, outpacing the Canadian market's average growth rate of 16%.
China Gold International Resources
Overview: China Gold International Resources Corp. Ltd. is a mining company focused on acquiring, exploring, developing, and mining gold and base metal resources in China and Canada, with a market cap of approximately CA$3.50 billion.
Operations: The company's revenue segments include Mine - Produced Gold at $246.95 million and Mine - Produced Copper Concentrate at $509.70 million.
Estimated Discount To Fair Value: 14.2%
China Gold International Resources reported a net income of US$62.73 million for 2024, rebounding from a loss the previous year, with sales rising to US$756.65 million. Trading at CA$9, the stock is below its estimated fair value of CA$10.49 and offers potential value based on cash flows. Earnings are expected to grow significantly at 38% annually over three years, surpassing Canadian market averages despite slower revenue growth projections.