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Recent undervalued companies based on their current market price include Seroja Investments and Golden Energy and Resources. There’s a few ways you can value a company. 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. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good investments.
Seroja Investments Limited (SGX:IW5)
Seroja Investments Limited, an investment holding company, provides marine cargo and coal transportation services in Indonesia and Singapore. The company was established in 1983 and with the market cap of SGD SGD17.57M, it falls under the small-cap stocks category.
IW5’s shares are now trading at -36% less than its actual worth of $0.07, at a price of S$0.045, based on its expected future cash flows. This discrepancy gives us a chance to invest in IW5 at a discount. What’s even more appeal is that IW5’s PE ratio is trading at 12.27x while its Shipping peer level trades at, 13.06x implying that relative to its comparable company group, we can buy IW5’s stock at a cheaper price today. IW5 is also a financially robust company, with current assets covering liabilities in the near term and over the long run. It’s debt-to-equity ratio of 20.53% has been declining for the past few years signalling IW5’s capacity to reduce its debt obligations year on year. Continue research on Seroja Investments here.
Golden Energy and Resources Limited (SGX:AUE)
Golden Energy and Resources Limited, an investment holding company, engages in the exploration, mining, and marketing of thermal coal in Indonesia. Started in 1997, and currently headed by CEO Fuganto Widjaja, the company employs 380 people and has a market cap of SGD SGD835.35M, putting it in the small-cap stocks category.
AUE’s shares are now hovering at around -75% beneath its actual worth of $1.44, at the market price of S$0.35, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. What’s even more appeal is that AUE’s PE ratio is trading at 9.93x relative to its index peer level of, 13.61x suggesting that relative to its competitors, you can buy AUE’s shares at a cheaper price. AUE is also a financially healthy company, as short-term assets amply cover upcoming and long-term liabilities.
Interested in Golden Energy and Resources? Find out more here.
Goodland Group Limited (SGX:5PC)
Goodland Group Limited, an investment holding company, engages in real estate development activities in Singapore and Malaysia. Goodland Group was started in 1993 and has a market cap of SGD SGD102.80M, putting it in the small-cap stocks category.