Revolution Bars Group and Strix Group are companies that are currently trading below what they’re actually worth. 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.
Revolution Bars Group plc (LSE:RBG)
Revolution Bars Group plc operates premium bars located in towns or city high streets across the United Kingdom. Founded in 1991, and headed by CEO , the company now has 2,743 employees and with the company’s market cap sitting at GBP £84.20M, it falls under the small-cap category.
RBG’s shares are currently hovering at around -52% less than its intrinsic level of £3.49, at the market price of £1.68, based on its expected future cash flows. The difference between value and price signals a potential opportunity to buy RBG shares at a discount. Furthermore, RBG’s PE ratio is trading at around 20.5x compared to its hospitality peer level of 23.3x, implying that relative to other stocks in the industry, RBG’s stock can be bought at a cheaper price. RBG is also a financially healthy company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. Interested in Revolution Bars Group? Find out more here. LSE:RBG PE PEG Gauge Jan 14th 18
Strix Group Plc (AIM:KETL)
Strix Group Plc manufactures and sells kettle controls worldwide. Started in 2017, and run by CEO Mark Bartlett, the company provides employment to 459 people and with the stock’s market cap sitting at GBP £264.10M, it comes under the small-cap stocks category.
KETL’s stock is currently floating at around -41% lower than its real value of £2.36, at a price tag of £1.39, based on its expected future cash flows. This mismatch indicates a chance to invest in KETL at a discounted price. Also, KETL’s PE ratio is currently around 12x against its its electronic peer level of 15.7x, indicating that relative to its competitors, we can purchase KETL’s shares for cheaper. KETL also has a healthy balance sheet, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. Dig deeper into Strix Group here. AIM:KETL PE PEG Gauge Jan 14th 18
Pan African Resources PLC (AIM:PAF)
Pan African Resources PLC engages in the exploration of precious metals in South Africa. Started in 2000, and now led by CEO Jacobus Loots, the company employs 3,932 people and with the market cap of GBP £250.69M, it falls under the small-cap stocks category.
PAF’s stock is now trading at -70% below its actual value of £0.47, at the market price of £0.14, based on my discounted cash flow model. This discrepancy signals a potential opportunity to buy PAF shares at a low price. Also, PAF’s PE ratio is around 9.6x against its its metals and mining peer level of 13.1x, suggesting that relative to its comparable company group, you can buy PAF’s shares at a cheaper price. PAF is also a financially healthy company, with current assets covering liabilities in the near term and over the long run. Interested in Pan African Resources? Find out more here. AIM:PAF PE PEG Gauge Jan 14th 18
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.
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