Yahoo Finance Best-In-Class ASX Undervalued Stocks
Stocks, such as Vita Group, trading at a market price below their true values are considered to be undervalued. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.
Vita Group Limited (ASX:VTG)
Vita Group Limited markets and sells communication and technology solutions in Australia. Formed in 1995, and currently run by Maxine Horne, the company now has 1,700 employees and with the company’s market cap sitting at AUD A$154.78M, it falls under the small-cap category.
VTG’s shares are now floating at around -67% beneath its value of $2.95, at a price tag of AU$0.96, according to my discounted cash flow model. The mismatch signals a potential chance to invest in VTG at a discounted price. What’s even more appeal is that VTG’s PE ratio is trading at 5.13x against its its Specialty Retail peer level of, 16.1x meaning that relative to other stocks in the industry, VTG’s shares can be purchased for a lower price. VTG is also in good financial health, with current assets covering liabilities in the near term and over the long run. Finally, its debt relative to equity is 12.45%, which has been declining over time, signalling its capacity to pay down its debt. More on Vita Group here.
Energy One Limited (ASX:EOL)
Energy One Limited supplies software products and services for wholesale energy, environmental, and carbon trading markets in Australia, New Zealand, Singapore, and Philippines. Energy One is currently led by CEO Shaun Ankers. With the company’s market capitalisation at AUD A$17.09M, we can put it in the small-cap group
EOL’s shares are now hovering at around -68% under its true value of $2.61, at the market price of AU$0.84, according to my discounted cash flow model. This mismatch indicates a chance to invest in EOL at a discounted price. Also, EOL’s PE ratio stands at 21.39x against its its Software peer level of, 28.97x meaning that relative to its peers, EOL’s shares can be purchased for a lower price. EOL is also a financially healthy company, with current assets covering liabilities in the near term and over the long run.
Interested in Energy One? Find out more here.
Australia and New Zealand Banking Group Limited (ASX:ANZ)
Australia and New Zealand Banking Group Limited, together with its subsidiaries, provides various banking and financial products and services to individual and business customers. Formed in 1835, and currently lead by Shayne Elliott, the company employs 39,540 people and with the company’s market cap sitting at AUD A$76.21B, it falls under the large-cap group.
ANZ’s stock is currently trading at -20% beneath its true level of $33.28, at the market price of AU$26.52, according to my discounted cash flow model. The difference between value and price signals a potential opportunity to buy ANZ shares at a discount. Also, ANZ’s PE ratio is currently around 10.44x compared to its Banks peer level of, 11.35x meaning that relative to its competitors, ANZ can be bought at a cheaper price right now. ANZ is also strong financially, with near-term assets able to cover upcoming and long-term liabilities.
Dig deeper into Australia and New Zealand Banking Group 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.
