Companies that are recently trading at a market price lower than their real values include TTM Technologies and Quad/Graphics. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.
TTM Technologies, Inc. (NASDAQ:TTMI)
TTM Technologies, Inc., together with its subsidiaries, manufactures printed circuit boards (PCBs) worldwide. Started in 1978, and currently run by Thomas Edman, the company size now stands at 29,000 people and with the company’s market cap sitting at USD $1.70B, it falls under the small-cap group.
TTMI’s shares are currently floating at around -41% under its true value of $28.26, at a price of US$16.65, according to my discounted cash flow model. This discrepancy signals a potential opportunity to buy TTMI shares at a low price. Furthermore, TTMI’s PE ratio is trading at 13.62x while its Electronic peer level trades at, 22.22x implying that relative to its competitors, we can invest in TTMI at a lower price. TTMI also has a healthy balance sheet, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.
Interested in TTM Technologies? Find out more here.
Quad/Graphics, Inc. (NYSE:QUAD)
Quad/Graphics, Inc. provides print and marketing services in the United States, Europe, Latin America, and internationally. Established in 1971, and run by CEO J. Quadracci, the company currently employs 21,100 people and with the company’s market capitalisation at USD $1.43B, we can put it in the small-cap group.
QUAD’s stock is now hovering at around -45% lower than its value of $49.75, at a price of US$27.14, based on its expected future cash flows. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. What’s even more appeal is that QUAD’s PE ratio is around 12.56x against its its Commercial Services peer level of, 18.27x implying that relative to other stocks in the industry, you can purchase QUAD’s stock for a lower price right now. QUAD is also in good financial health, as current assets can cover liabilities in the near term and over the long run.
More on Quad/Graphics here.
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. Established in 1902, and headed by CEO John Albright, the company now has 14 employees and with the company’s market capitalisation at USD $372.91M, we can put it in the small-cap stocks category.
CTO’s shares are now trading at -72% lower than its actual level of $239.54, at the market price of US$66.19, according to my discounted cash flow model. The mismatch signals a potential chance to invest in CTO at a discounted price. Moreover, CTO’s PE ratio is trading at around 8.79x while its Real Estate peer level trades at, 10.13x implying that relative to other stocks in the industry, you can buy CTO’s shares at a cheaper price. CTO is also in great financial shape, as short-term assets amply cover upcoming and long-term liabilities.
Interested in Consolidated-Tomoka Land? Find out more 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.