Aivtech International Group and SandRidge Permian Trust are companies that are currently trading below what they’re actually worth. 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.
Aivtech International Group Co. (OTCPK:AIVI)
Aivtech International Group Co. engages in designing, manufacturing, and selling electronic furniture products, digital/multimedia speakers, and LCD/LED televisions under the AIV brand name in the People’s Republic of China. Aivtech International Group is run by CEO JinLin Guo. With the company’s market capitalisation at USD $115.73K, we can put it in the small-cap category
AIVI’s stock is currently trading at -100% less than its actual value of $2.31, at a price of $0.01, based on my discounted cash flow model. The discrepancy signals an opportunity to buy low. Moreover, AIVI’s PE ratio is currently around 0x relative to its consumer durables peer level of 18x, meaning that relative to its comparable set of companies, you can buy AIVI’s shares at a cheaper price. AIVI is also a financially robust company, as current assets can cover liabilities in the near term and over the long run.
More on Aivtech International Group here.
SandRidge Permian Trust (NYSE:PER)
SandRidge Permian Trust holds royalty interests in specified oil and natural gas properties in the Permian Basin located in Andrews County, Texas. SandRidge Permian Trust was founded in 2011 and with the company’s market capitalisation at USD $131.25M, we can put it in the small-cap group.
PER’s shares are now trading at -58% below its actual value of $6.01, at the market price of $2.55, according to my discounted cash flow model. This mismatch indicates a chance to invest in PER at a discounted price. What’s even more appeal is that PER’s PE ratio stands at around 5.5x while its oil and gas peer level trades at 14.8x, implying that relative to its comparable company group, PER’s stock can be bought at a cheaper price. PER is also strong in terms of its financial health, with short-term assets covering liabilities in the near future as well as in the long run. PER has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Dig deeper into SandRidge Permian Trust here.
American Shared Hospital Services (AMEX:AMS)
American Shared Hospital Services, together with its subsidiaries, leases radiosurgery and radiation therapy equipment to health care providers primarily in the United States. The company was established in 1980 and with the company’s market cap sitting at USD $15.42M, it falls under the small-cap group.
AMS’s stock is currently hovering at around -73% below its intrinsic value of $9.8, at a price tag of $2.68, based on its expected future cash flows. The divergence signals an opportunity to buy AMS shares at a low price. Additionally, AMS’s PE ratio is trading at 16x compared to its healthcare peer level of 22.5x, indicating that relative to its comparable company group, we can purchase AMS’s shares for cheaper. AMS is also strong in terms of its financial health, as current assets can cover liabilities in the near term and over the long run. The stock’s debt-to equity ratio of 88% has been diminishing over time, revealing its ability to reduce its debt obligations year on year. Continue research on American Shared Hospital Services 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.