The ASX200 index saw minimal movement, closing just 0.06% lower as the Australian market weathered a period of anticipation ahead of upcoming quarterly CPI data. While sectors such as information technology and healthcare showed resilience, others such as staples and industrials lagged behind, highlighting mixed performance overall. In this environment, identifying undervalued stocks can be important for investors seeking opportunities that may not yet be fully recognized by the market.
name
current price
Fair value (estimated)
Discount (estimated)
Data #3 (ASX:DTL)
¥7.21
¥13.43
46.3%
Manufacturer Group (ASX:MAD)
¥5.65
¥10.44
45.9%
Westgold Resources (ASX:WGX)
¥3.29
¥6.25
47.4%
Telix Pharmaceuticals (ASX:TLX)
$20.90
¥41.66
49.8%
Ansell (ASX:ANN)
¥31.17
¥58.28
46.5%
Ingenia Community Group (ASX:INA)
¥4.90
¥9.39
47.8%
Millennium Services Group (ASX:MIL)
¥1145
¥224
48.9%
Megaport (ASX:MP1)
¥6.93
¥13.42
48.4%
Genesis Minerals (ASX:GMD)
¥2.53
¥4.78
47.1%
Energy One (ASX:EOL)
¥5.65
¥11.07
48.9%
Click here to see the complete list of 43 stocks in our undervalued ASX stock screener based on cash flow.
Here we highlight a subset of preferred stocks from the screener.
Overview: Aussie Broadband Limited provides telecommunications and technology services in Australia and has a market capitalization of A$1.15 billion.
Business Operations: The company’s revenue segments include Business (A$96.97 million), Wholesale (A$159.73 million), Residential (A$585.07 million), Symbio Group (A$69.93 million), and Corporate and Government (A$88.04 million). dollar) included.
Estimated discount rate to fair value: 42.2%
Aussie Broadband is trading at A$3.99, well below its estimated fair value of A$6.74, indicating it may be undervalued based on cash flows. Despite shareholder dilution over the past year, earnings are expected to grow significantly at 27.3% per year, outpacing the Australian market’s growth rate of 12.3%. Recent changes include a change in leadership and reaching a milestone of over A$1 billion in revenue and market capitalization in 2024.
ASX:ABB Discounted cash flow as of October 2024
Overview: SiteMinder Limited develops, markets and sells online guest acquisition platforms and commerce solutions for accommodation providers in Australia and internationally, and has a market capitalization of A$1.8 billion.
Business Operations: The company generates revenues of A$190.84 million from its software and programming segment.
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Estimated discount rate to fair value: 10.8%
SiteMinder’s trading price was A$6.51, slightly below its estimated fair value of A$7.3, suggesting it may be undervalued based on cash flows. The company reported a net loss of A$25.13 million for the year ending June 2024, an improvement from a loss of A$49.3 million a year earlier. Revenue increased from A$151.38 million to A$190.67 million, with further growth expected to significantly outpace the overall Australian market in the coming years.
ASX:SDR Discounted cash flow as of October 2024
Overview: Superloop Limited has a market capitalization of A$994.51 million and operates as a telecommunications and internet service provider in Australia.
Operations: The company’s revenue segments consist of A$104.04 million from the Business segment, A$264.56 million from the Consumer segment, and A$48.03 million from the Wholesale segment.
Estimated discount rate to fair value: 40.1%
Superloop trades at A$1.95, significantly undervalued compared to its estimated fair value of A$3.26 based on a discounted cash flow analysis. The latest earnings saw net loss fall to A$14.74 million from A$43.2 million a year earlier, while revenue increased to A$420.52 million from A$323.52 million. Despite shareholder dilution and expected low return on equity, Superloop’s expected earnings growth rate is above the Australian market average over the next few years.
ASX:SLC Discounted cash flow as of October 2024
Here we navigate our entire inventory of 43 ASX stocks that are undervalued based on cash flow.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
Companies featured in this article include ASX:ABB ASX:SDR and ASX:SLC.
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