ASX Stocks That May Be Trading Below Their Estimated Value In May 2025
Name
Current Price
Fair Value (Est)
Discount (Est)
Smart Parking (ASX:SPZ)
A$0.95
A$1.78
46.6%
Lynas Rare Earths (ASX:LYC)
A$7.66
A$13.43
43%
Austal (ASX:ASB)
A$5.06
A$9.20
45%
Charter Hall Group (ASX:CHC)
A$18.30
A$34.25
46.6%
SciDev (ASX:SDV)
A$0.365
A$0.68
46.4%
Polymetals Resources (ASX:POL)
A$0.83
A$1.52
45.4%
Genesis Minerals (ASX:GMD)
A$3.84
A$6.75
43.1%
Sandfire Resources (ASX:SFR)
A$10.73
A$21.13
49.2%
PointsBet Holdings (ASX:PBH)
A$1.095
A$2.08
47.2%
Superloop (ASX:SLC)
A$2.48
A$4.52
45.1%
Click here to see the full list of 37 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Overview: Judo Capital Holdings Limited, with a market cap of A$1.55 billion, provides banking products and services tailored for small and medium businesses in Australia through its subsidiaries.
Operations: Judo Capital Holdings derives its revenue primarily from its banking segment, which generated A$325.50 million.
Estimated Discount To Fair Value: 26%
Judo Capital Holdings is trading at A$1.39, significantly below its estimated fair value of A$1.88, highlighting potential undervaluation based on cash flows. Despite significant insider selling recently, the company's earnings are forecast to grow 28.15% annually over the next three years, outpacing the Australian market's average growth rate of 11.7%. However, its Return on Equity is expected to remain low at 10.1% in three years, which may be a concern for some investors.
Upon reviewing our latest growth report, Judo Capital Holdings' projected financial performance appears quite optimistic.
Click here and access our complete balance sheet health report to understand the dynamics of Judo Capital Holdings.
Overview: Pantoro Gold Limited, with a market cap of A$1.25 billion, is involved in gold mining, processing, and exploration activities in Western Australia.
Operations: Pantoro Gold Limited's revenue primarily comes from the Norseman Gold Project, generating A$289.11 million.
Estimated Discount To Fair Value: 40.8%
Pantoro Gold is trading at A$3.21, considerably below its estimated fair value of A$5.42, suggesting undervaluation based on cash flows. The company reported a significant turnaround with net income of A$6.62 million for the half year ended December 2024, compared to a loss previously. Earnings are projected to grow annually by 57.28%, and it is expected to become profitable in three years with a high forecasted Return on Equity of 21.4%.
Our comprehensive growth report raises the possibility that Pantoro Gold is poised for substantial financial growth.
Unlock comprehensive insights into our analysis of Pantoro Gold stock in this financial health report.
Overview: Superloop Limited operates as a telecommunications and internet service provider in Australia with a market cap of A$1.27 billion.
Operations: Superloop's revenue is derived from three main segments: Business (A$103.63 million), Consumer (A$316.02 million), and Wholesale (A$60.05 million).
Estimated Discount To Fair Value: 45.1%
Superloop, trading at A$2.48, is significantly undervalued based on cash flows with an estimated fair value of A$4.52. Despite reporting a net loss of A$7.78 million for the half year ended December 2024, this marks an improvement from the previous year's larger loss. Earnings are forecast to grow by 53.1% annually and become profitable within three years, with revenue growth expected to outpace the broader Australian market at 13.4% per year.
The growth report we've compiled suggests that Superloop's future prospects could be on the up.
Take a closer look at Superloop's balance sheet health here in our report.
Click through to start exploring the rest of the 34 Undervalued ASX Stocks Based On Cash Flows now.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ASX:JDO ASX:PNR and ASX:SLC.
This article was originally published by Simply Wall St.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
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A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (A$, Millions) AU$123.2m AU$111.1m AU$107.0m AU$114.0m AU$112.8m AU$113.0m AU$114.1m AU$115.9m AU$118.2m AU$120.9m Growth Rate Estimate Source Analyst x2 Analyst x3 Analyst x1 Analyst x1 Est @ -1.06% Est @ 0.15% Est @ 0.99% Est @ 1.58% Est @ 1.99% Est @ 2.28% Present Value (A$, Millions) Discounted @ 8.0% AU$114 AU$95.2 AU$84.9 AU$83.7 AU$76.7 AU$71.1 AU$66.5 AU$62.5 AU$59.0 AU$55.9 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$770m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 8.0%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = AU$121m× (1 + 2.9%) ÷ (8.0%– 2.9%) = AU$2.5b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$2.5b÷ ( 1 + 8.0%)10= AU$1.1b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$1.9b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of AU$7.5, the company appears about fair value at a 14% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. 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Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For GrainCorp, we've put together three pertinent elements you should assess: Risks: You should be aware of the 4 warning signs for GrainCorp (1 doesn't sit too well with us!) we've uncovered before considering an investment in the company. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for GNC's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every Australian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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