Best-In-Class Undervalued Stocks
Stocks, such as Consolidated-Tomoka Land and TTM Technologies, are trading at a value below what they may actually be worth. There’s a few ways you can measure the value of a company – you can forecast how much money it will make in the future and base your valuation off of this, or you can look around at its peers of similar size and industry to roughly estimate what it should be worth. Below, I’ve created a list of companies that compare favourably in all criteria based on their most recent financial data, making them potentially good investments.
Consolidated-Tomoka Land Co. (AMEX:CTO)
Consolidated-Tomoka Land Co., together with its subsidiaries, operates as a diversified real estate operating company in the United States. Formed in 1902, and currently lead by John Albright, the company provides employment to 14 people and with the company’s market cap sitting at USD $336.43M, it falls under the small-cap stocks category.
CTO’s stock is currently hovering at around -75% lower than its actual worth of $236.27, at a price tag of US$60.13, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Also, CTO’s PE ratio is trading at around 8.33x while its Real Estate peer level trades at, 10x meaning that relative to its peers, we can invest in CTO at a lower price. CTO is also a financially healthy company, as current assets can cover liabilities in the near term and over the long run.
More on Consolidated-Tomoka Land here.
TTM Technologies, Inc. (NASDAQ:TTMI)
TTM Technologies, Inc., together with its subsidiaries, manufactures printed circuit boards (PCBs) worldwide. Formed in 1978, and headed by CEO Thomas Edman, the company employs 29,000 people and with the company’s market capitalisation at USD $1.57B, we can put it in the small-cap category.
TTMI’s shares are currently hovering at around -44% beneath its actual value of $26.9, at a price tag of US$15.16, according to my discounted cash flow model. The mismatch signals a potential chance to invest in TTMI at a discounted price. Moreover, TTMI’s PE ratio stands at 12.4x while its Electronic peer level trades at, 22.5x suggesting that relative to other stocks in the industry, TTMI can be bought at a cheaper price right now. TTMI is also strong in terms of its financial health, as short-term assets amply cover upcoming and long-term liabilities.
Continue research on TTM Technologies here.
Quad/Graphics, Inc. (NYSE:QUAD)
Quad/Graphics, Inc. provides print and marketing services in the United States, Europe, Latin America, and internationally. Started in 1971, and now run by J. Quadracci, the company size now stands at 21,100 people and with the company’s market capitalisation at USD $1.38B, we can put it in the small-cap category.
QUAD’s stock is now hovering at around -41% below its true level of $43.61, at the market price of US$25.84, according to my discounted cash flow model. This discrepancy gives us a chance to invest in QUAD at a discount. In addition to this, QUAD’s PE ratio stands at around 11.96x relative to its Commercial Services peer level of, 17.8x indicating that relative to other stocks in the industry, we can invest in QUAD at a lower price. QUAD is also a financially healthy company, with short-term assets covering liabilities in the near future as well as in the long run.
Continue research on Quad/Graphics here.
For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
