Companies that are recently trading at a market price lower than their real values include United Development Funding IV and Waxman Industries. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.
United Development Funding IV (OTCPK:UDFI)
United Development Funding IV operates as a real estate investment trust (REIT) in the United States. United Development Funding IV was established in 2008 and with the market cap of USD $101.22M, it falls under the small-cap group.
UDFI’s shares are now floating at around -74% beneath its real value of $12.68, at a price tag of $3.3, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Furthermore, UDFI’s PE ratio is currently around 1.8x compared to its mortgage reits peer level of 10.7x, implying that relative to its comparable set of companies, we can purchase UDFI’s shares for cheaper. UDFI also has a healthy balance sheet, with near-term assets able to cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 34% has for the past few years demonstrating its capacity
Waxman Industries, Inc. (OTCPK:WXMN)
Waxman Industries, Inc. designs, develops, and distributes surface protection and floor care products, and other home improvement and hardware products. Waxman Industries was formed in 1989 and has a market cap of USD $1.88M, putting it in the small-cap group.
WXMN’s stock is currently hovering at around -64% lower than its actual worth of $4.62, at a price of $1.65, based on my discounted cash flow model. This mismatch indicates a chance to invest in WXMN at a discounted price. Moreover, WXMN’s PE ratio is trading at around 1.3x relative to its building peer level of 24.8x, implying that relative to its comparable set of companies, WXMN’s stock can be bought at a cheaper price. WXMN is also robust in terms of financial health, with current assets covering liabilities in the near term and over the long run. It’s debt-to-equity ratio of 23% has over the past couple of years signalling WXMN’s capacity
American Biltrite Inc. (OTCPK:ABLT)
American Biltrite Inc., together with its subsidiaries, provides tape, jewelry, flooring, and rubber products in the United States and internationally. Founded in 1908, and currently run by Roger Marcus, the company size now stands at 600 people and with the stock’s market cap sitting at USD $16.45M, it comes under the small-cap category.