Recent undervalued companies based on their current market price include VibroPower and LHT Holdings. There’s a few ways you can determine how much a company is actually worth. The most popular methods include discounting the company’s cash flows it is expected to create in the future, or comparing its price to its peers or the value of its assets. The discrepancy between the price and value means investors have an opportunity to buy shares at a discount. Below are the stocks I believe are undervalued on all criteria, based on their latest financial data.
VibroPower Corporation Limited (SGX:BJD)
VibroPower Corporation Limited, an investment holding company, designs, manufactures, supplies, installs, commissions, and services stationary generators primarily for commercial and industrial properties, and housing projects. VibroPower was started in 1995 and with the market cap of SGD SGD4.96M, it falls under the small-cap stocks category.
BJD’s shares are now floating at around -49% lower than its true level of $0.27, at a price tag of $0.14, based on my discounted cash flow model. This discrepancy signals a potential opportunity to buy BJD shares at a low price. What’s even more appeal is that BJD’s PE ratio stands at around 9.4x while its electrical peer level trades at 21.1x, suggesting that relative to its comparable company group, we can purchase BJD’s shares for cheaper. BJD is also in good financial health, with short-term assets covering liabilities in the near future as well as in the long run. Finally, its debt relative to equity is 44%, which has been dropping for the last couple of years showing BJD’s capacity to pay down its debt. Interested in VibroPower? Find out more here.
LHT Holdings Limited (SGX:BEI)
LHT Holdings Limited manufactures and trades wooden pallets and timber related products in Singapore, Malaysia, and China. Founded in 1977, and now run by Mui Kee Yap, the company size now stands at 326 people and with the stock’s market cap sitting at SGD SGD34.34M, it comes under the small-cap group.
BEI’s shares are currently floating at around -61% under its real value of $1.65, at a price tag of $0.65, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. Moreover, BEI’s PE ratio is around 13.1x against its its forestry peer level of 14.9x, indicating that relative to its peers, you can purchase BEI’s stock for a lower price right now. BEI is also a financially robust company, as current assets can cover liabilities in the near term and over the long run. It’s debt-to-equity ratio of 2% has been reducing over the past couple of years showing its capability to pay down its debt. More detail on LHT Holdings here.