ASX Stocks That May Be Trading Below Estimated Value In October 2024

In This Article:

In the last week, the Australian market has remained flat, yet it has experienced a 15% increase over the past year with earnings forecasted to grow by 12% annually. In this context of steady growth, identifying stocks that may be trading below their estimated value can provide opportunities for investors seeking potential gains in a thriving market.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

Mader Group (ASX:MAD)

A$5.35

A$10.41

48.6%

EZZ Life Science Holdings (ASX:EZZ)

A$4.46

A$8.79

49.2%

MLG Oz (ASX:MLG)

A$0.635

A$1.16

45.2%

Charter Hall Group (ASX:CHC)

A$15.84

A$31.47

49.7%

Ingenia Communities Group (ASX:INA)

A$4.97

A$9.43

47.3%

Little Green Pharma (ASX:LGP)

A$0.085

A$0.17

49.8%

Millennium Services Group (ASX:MIL)

A$1.145

A$2.24

48.9%

IDP Education (ASX:IEL)

A$15.01

A$27.65

45.7%

Superloop (ASX:SLC)

A$1.765

A$3.31

46.7%

Mineral Resources (ASX:MIN)

A$51.18

A$95.96

46.7%

Click here to see the full list of 46 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Aussie Broadband

Overview: Aussie Broadband Limited offers telecommunications and technology services in Australia with a market cap of A$1.13 billion.

Operations: The company's revenue is derived from several segments, including Business (A$96.97 million), Wholesale (A$159.73 million), Residential (A$585.07 million), Symbio Group (A$69.93 million), and Enterprise and Government (A$88.04 million).

Estimated Discount To Fair Value: 42.4%

Aussie Broadband appears undervalued based on cash flows, trading at A$3.88, which is over 20% below its estimated fair value of A$6.74. The company reported substantial revenue growth to nearly A$1 billion and net income of A$26.38 million for the fiscal year ending June 2024, despite shareholder dilution and one-off items affecting earnings quality. With forecasted annual profit growth of 27.3%, it surpasses the Australian market's expected growth rate significantly, indicating potential for future expansion.

ASX:ABB Discounted Cash Flow as at Oct 2024
ASX:ABB Discounted Cash Flow as at Oct 2024

SiteMinder

Overview: SiteMinder Limited develops, markets, and sells an online guest acquisition platform and commerce solutions for accommodation providers in Australia and internationally, with a market cap of A$1.77 billion.

Operations: The company's revenue segment consists of Software & Programming, generating A$190.84 million.