Flavor Of The Month: Ascendas India Trust And More
Recent undervalued companies based on their current market price include Ascendas India Trust and Best World International. There’s a few ways you can determine how much a company is actually worth. 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. The discrepancy between the price and value means investors have an opportunity to buy shares at a discount. Below are the stocks I believe are undervalued on all criteria, based on their latest financial data.
Ascendas India Trust (SGX:CY6U)
Ascendas India Trust (“a-iTrust” or the “Trust”) was listed in August 2007 as the first Indian property trust in Asia. Ascendas India Trust was founded in 2007 and with the company’s market capitalisation at SGD SGD1.07B, we can put it in the small-cap category.
CY6U’s shares are currently trading at -75% below its actual level of $4.53, at a price tag of $1.15, according to my discounted cash flow model. This mismatch signals an opportunity to buy CY6U shares at a discount. Furthermore, CY6U’s PE ratio stands at 7.8x compared to its real estate peer level of 11.6x, indicating that relative to its peers, you can purchase CY6U’s stock for a lower price right now. CY6U is also in great financial shape, as current assets can cover liabilities in the near term and over the long run.
Dig deeper into Ascendas India Trust here.
Best World International Limited (SGX:CGN)
Best World International Limited, an investment holding company, develops, manufactures, and distributes skincare, personal care, nutritional, and wellness products in Singapore, the People’s Republic of China, Indonesia, the Philippines, Thailand, Malaysia, Vietnam, Myanmar, Korea, and the United Arab Emirates. Best World International was founded in 1990 and with the market cap of SGD SGD726.12M, it falls under the small-cap group.
CGN’s shares are currently trading at -44% under its actual value of $2.37, at a price of $1.32, based on its expected future cash flows. The divergence signals an opportunity to buy CGN shares at a low price. Furthermore, CGN’s PE ratio stands at 15.7x relative to its personal products peer level of 27x, suggesting that relative to other stocks in the industry, you can purchase CGN’s stock for a lower price right now. CGN is also a financially robust company, as current assets can cover liabilities in the near term and over the long run.
Interested in Best World International? Find out more here.
Bumitama Agri Ltd. (SGX:P8Z)
Bumitama Agri Ltd., an investment holding company, produces and trades in crude palm oil (CPO), palm kernel (PK), and related products for refineries in Indonesia. Founded in 1996, and now led by CEO Lim Gunawan, the company now has 12,600 employees and with the company’s market capitalisation at SGD SGD1.30B, we can put it in the small-cap group.
P8Z’s stock is now hovering at around -24% beneath its true level of IDR0.98, at a price of IDR0.75, according to my discounted cash flow model. This discrepancy signals a potential opportunity to buy P8Z shares at a low price. In terms of relative valuation, P8Z’s PE ratio is currently around 10.2x while its food peer level trades at 11.1x, implying that relative to its competitors, P8Z’s shares can be purchased for a lower price. P8Z is also robust in terms of financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
Continue research on Bumitama Agri here.
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.
