Financially Sounds Stocks Selling At A Discount
Recent undervalued companies based on their current market price include Playtech and Billington Holdings. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Playtech plc (LSE:PTEC)
Playtech plc engages in the development and licensing of software products for the online and land-based gambling industries. Formed in 1999, and now led by CEO Mor Weizer, the company currently employs 5,000 people and with the stock’s market cap sitting at GBP £2.66B, it comes under the mid-cap category.
PTEC’s stock is now trading at -36% lower than its true value of €13.46, at the market price of €8.55, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. Also, PTEC’s PE ratio stands at around 13x relative to its software peer level of 34x, suggesting that relative to other stocks in the industry, PTEC can be bought at a cheaper price right now. PTEC is also strong financially, as current assets can cover liabilities in the near term and over the long run. The stock’s debt-to equity ratio of 43% has for the last couple of years revealing its capacity
Billington Holdings Plc (AIM:BILN)
Billington Holdings Plc, through its subsidiaries, designs, manufactures, and installs structural steelworks in the United Kingdom and rest of Europe. Founded in 1989, and currently headed by CEO Mark Smith, the company size now stands at 361 people and with the stock’s market cap sitting at GBP £35.24M, it comes under the small-cap stocks category.
BILN’s shares are now hovering at around -46% less than its value of £5.33, at a price of £2.88, according to my discounted cash flow model. signalling an opportunity to buy the stock at a low price. In terms of relative valuation, BILN’s PE ratio is around 10.1x relative to its construction peer level of 19.2x, meaning that relative to its comparable company group, we can purchase BILN’s shares for cheaper. BILN is also robust in terms of financial health, with near-term assets able to cover upcoming and long-term liabilities. Finally, its debt relative to equity is 12%, which has for the past few years revealing BILN’s capability
Maintel Holdings Plc (AIM:MAI)
Maintel Holdings Plc, through its subsidiaries, provides managed communications services for the private and public sectors in the United Kingdom and internationally. Started in 1991, and currently headed by CEO Edward Buxton, the company provides employment to 631 people and has a market cap of GBP £90.84M, putting it in the small-cap category.
MAI’s stock is now floating at around -71% less than its intrinsic value of £21.46, at a price of £6.28, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. In addition to this, MAI’s PE ratio is around 15.7x relative to its commercial services peer level of 13.6x, meaning that relative to its competitors, MAI’s shares can be purchased for a lower price. MAI is also strong in terms of its financial health, with current assets covering liabilities in the near term and over the long run. The stock’s debt-to equity ratio of 87% has for the past few years showing MAI’s capability
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.
