Companies that are recently trading at a market price lower than their real values include JB Foods and Pan Hong Holdings Group. 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.
JB Foods Limited (SGX:BEW)
JB Foods Limited, an investment holding company, produces and sells cocoa ingredient products. JB Foods is run by CEO How Tey. With the stock’s market cap sitting at SGD SGD130.75M, it comes under the small-cap category
BEW’s shares are currently trading at -87% below its intrinsic level of $4.33, at the market price of S$0.57, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. In addition to this, BEW’s PE ratio is trading at 7.01x against its its Food peer level of, 11.01x indicating that relative to its peers, you can buy BEW’s shares at a cheaper price. BEW is also robust in terms of financial health, as current assets can cover liabilities in the near term and over the long run.
Continue research on JB Foods here.
Pan Hong Holdings Group Limited (SGX:P36)
Pan Hong Holdings Group Limited, an investment holding company, engages in the investment and development of residential and commercial properties in the People’s Republic of China. Started in 2005, and headed by CEO Lam Ping Wong, the company now has 295 employees and with the company’s market capitalisation at SGD SGD49.18M, we can put it in the small-cap category.
P36’s shares are currently trading at -30% under its intrinsic value of ¥0.14, at a price tag of S$0.096, according to my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Additionally, P36’s PE ratio is trading at around 1.69x while its Real Estate peer level trades at, 9.86x meaning that relative to other stocks in the industry, P36 can be bought at a cheaper price right now. P36 is also in good financial health, with current assets covering liabilities in the near term and over the long run.
More on Pan Hong Holdings Group here.
Intraco Limited (SGX:I06)
Intraco Limited operates as an investment management company, Singapore, rest of ASEAN, and Greater China. Intraco was established in 1968 and with the company’s market capitalisation at SGD SGD28.01M, we can put it in the small-cap stocks category.