Undervalued companies, such as Livermore Investments Group and Arcontech Group, trade at a price less than their true values. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Livermore Investments Group Limited (AIM:LIV)
Livermore Investments Group Limited invests in real estate, private equity, hedge funds, and capital markets. Livermore Investments Group was started in 2002 and with the company’s market cap sitting at GBP £84.78M, it falls under the small-cap stocks category.
LIV’s stock is currently trading at -57% beneath its actual worth of $1.12, at the market price of $0.49, according to my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. What’s even more appeal is that LIV’s PE ratio is trading at 5.5x relative to its capital markets peer level of 17.9x, meaning that relative to its comparable company group, we can purchase LIV’s shares for cheaper. LIV is also in great financial shape, with short-term assets covering liabilities in the near future as well as in the long run. LIV also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility.
Arcontech Group Plc (AIM:ARC)
Arcontech Group plc develops and sells proprietary software, and provides computer consultancy services in Europe, North America, and Asia Pacific. Founded in 1979, and now led by CEO Matthew Jeffs, the company employs 17 people and has a market cap of GBP £7.55M, putting it in the small-cap group.
ARC’s stock is now floating at around -32% lower than its actual value of £0.87, at a price of £0.59, according to my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Additionally, ARC’s PE ratio stands at 15.6x compared to its internet peer level of 34.4x, indicating that relative to its comparable set of companies, we can buy ARC’s stock at a cheaper price today. ARC is also in great financial shape, with short-term assets covering liabilities in the near future as well as in the long run. ARC has zero debt on its books as well, meaning it has no long term debt obligations to worry about.
Scientific Digital Imaging plc (AIM:SDI)
Scientific Digital Imaging plc, through its subsidiaries, designs and manufactures scientific and technology products based on digital imaging in the United Kingdom, Europe, the United States, rest of Asia, and internationally. Started in 2007, and currently run by Michael Creedon, the company currently employs 109 people and with the company’s market capitalisation at GBP £20.45M, we can put it in the small-cap stocks category.