Companies that trade at market prices below their actual values, such as Man Shing Agricultural Holdings and Amira Nature Foods, are perceived to be undervalued. 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.
Man Shing Agricultural Holdings, Inc. (OTCPK:MSAH)
Man Shing Agricultural Holdings, Inc. engages in the production and processing of fresh vegetables. Man Shing Agricultural Holdings was formed in 1998 and has a market cap of USD $168.79K, putting it in the small-cap group.
MSAH’s stock is now floating at around -95% under its actual value of $0.08, at a price of $0, according to my discounted cash flow model. This mismatch signals an opportunity to buy MSAH shares at a discount. Furthermore, MSAH’s PE ratio stands at around 0x while its food peer level trades at 19.6x, suggesting that relative to its comparable company group, we can invest in MSAH at a lower price. MSAH is also robust in terms of financial health, as short-term assets amply cover upcoming and long-term liabilities. Finally, its debt relative to equity is 9%, which has over time, showing MSAH’s ability
Amira Nature Foods Ltd. (NYSE:ANFI)
Amira Nature Foods Ltd. engages in processing, sourcing, and selling packaged Indian specialty rice. Started in 1915, and currently lead by Karan Chanana, the company employs 224 people and with the market cap of USD $174.61M, it falls under the small-cap category.
ANFI’s stock is now trading at -51% under its true level of $8.88, at the market price of $4.35, based on my discounted cash flow model. This difference in price and value gives us a chance to buy low. Additionally, ANFI’s PE ratio is trading at 5.1x relative to its food peer level of 19.6x, indicating that relative to other stocks in the industry, you can buy ANFI’s shares at a cheaper price. ANFI is also robust in terms of financial health, with short-term assets covering liabilities in the near future as well as in the long run. Finally, its debt relative to equity is 72%, which has been dropping over time, revealing ANFI’s capability to reduce its debt obligations year on year.
Viewtran Group, Inc. (OTCPK:VIEW.F)
Viewtran Group, Inc. provides supply chain financial services and enterprise solutions for the technology industry in China. The company employs 58 people and with the company’s market cap sitting at USD $561.71K, it falls under the small-cap category.
VIEW.F’s shares are currently hovering at around -100% beneath its actual value of ¥91.3, at the market price of ¥0.02, according to my discounted cash flow model. The discrepancy signals an opportunity to buy low. Also, VIEW.F’s PE ratio stands at around 0.2x against its its it peer level of 24x, suggesting that relative to its comparable set of companies, VIEW.F can be bought at a cheaper price right now. VIEW.F is also strong financially, as short-term assets amply cover upcoming and long-term liabilities. VIEW.F has zero debt on its books as well, meaning it has no long term debt obligations to worry about.
For more financially sound, undervalued companies to add to your portfolio, you can use our free platform to explore our 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.