Companies, such as A.Plus Group Holdings, are deemed to be undervalued because their shares are currently trading below their true values. There’s a few ways you can measure the value of a company – you can forecast how much money it will make in the future and base your valuation off of this, or you can look around at its peers of similar size and industry to roughly estimate what it should be worth. Below, I’ve created a list of companies that compare favourably in all criteria based on their most recent financial data, making them potentially good investments.
A.Plus Group Holdings Limited (SEHK:8251)
A.Plus Group Holdings Limited, an investment holding company, provides financial printing services under the A.Plus brand in Hong Kong. Formed in 2002, and currently lead by Wing Kong Fong, the company currently employs 93 people and has a market cap of HKD HK$244.00M, putting it in the small-cap stocks category.
8251’s shares are currently floating at around -61% under its actual value of $1.56, at a price of $0.61, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. Moreover, 8251’s PE ratio is around 7.2x against its its commercial services peer level of 19x, implying that relative to its competitors, you can buy 8251’s shares at a cheaper price. 8251 is also strong in terms of its financial health, as current assets can cover liabilities in the near term and over the long run. 8251 also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Interested in A.Plus Group Holdings? Find out more here.
Chanhigh Holdings Limited (SEHK:2017)
Chanhigh Holdings Limited, an investment holding company, provides municipal landscape and works construction services in the People’s Republic of China. Founded in 2016, and currently headed by CEO Yonghui Peng, the company employs 289 people and with the company’s market cap sitting at HKD HK$964.86M, it falls under the small-cap category.
2017’s shares are currently floating at around -92% under its actual worth of ¥18.85, at the market price of ¥1.56, based on its expected future cash flows. signalling an opportunity to buy the stock at a low price. Moreover, 2017’s PE ratio is around 5.3x compared to its construction peer level of 9.3x, meaning that relative to its peers, 2017 can be bought at a cheaper price right now. 2017 is also in great financial shape, with near-term assets able to cover upcoming and long-term liabilities.
Interested in Chanhigh Holdings? Find out more here.