3 ASX Stocks That Could Be Undervalued Based on Their Estimated Intrinsic Value

January 30, 2025 11:30 PM AEDT | By Team Kalkine Media

3 ASX Stocks That Could Be Undervalued Based on Their Estimated Intrinsic Value

Top Picks from the Undervalued Stocks List

Atlas Arteria (ASX:ALX)

Atlas Arteria Limited, known for its toll road operations, boasts a market cap of A$7.28 billion. Currently trading at A$4.98, the stock is considered undervalued based on cash flows, with an estimated fair value of A$9.54, reflecting a 47.8% discount. Despite concerns over its dividend sustainability, with a yield of 8.03%, Atlas Arteria's earnings are expected to climb at an annual rate of 20.36% over the next three years, surpassing market expectations.

IDP Education (ASX:IEL)

IDP Education Limited, specializing in student placements globally, holds a market cap of A$3.67 billion. The stock is under-valued by approximately 50%, trading at A$13.17 with a fair value estimate of A$26.31. Its projected earnings growth of 13.8% annually exceeds the broader market rate, underscoring its potential for substantial financial growth, even as revenue growth slightly lags market averages.

Megaport (ASX:MP1)

Megaport Limited, operating in on-demand interconnection services, has a market cap of A$1.30 billion. Trading at A$8.29, it presents as undervalued with an estimated fair value of A$11.97, offering a discount of 30.7%. Though its future return on equity is projected at a lower 18.6%, robust annual earnings growth of 27.3% and recent international expansions signal a promising outlook.

Dive deeper into all 43 under-valued ASX stocks evaluated by cash flows by accessing our comprehensive list and assessments.

Whether interested in diversifying with reliable dividend payers or seeking out small caps with potential, exploring these undervalued Australian stocks could enhance investment strategies in the changing market landscape. Stay informed about market trends and leverage the tools available for managing investments efficiently.

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