3 Stocks Trading At Estimated Discounts

Estimated Discount To Fair Value: 17.7%

Future Corporation is trading at ¥2,364, approximately 17.7% below its estimated fair value of ¥2,873.76. The company’s earnings are expected to grow at 15.23% annually, surpassing the Japanese market’s average growth rate of 7.8%. Despite revenue growth forecasts of 10.5% per year being moderate compared to some peers, recent dividend increases from JPY 21 to JPY 23 per share highlight a commitment to returning value to shareholders amidst steady financial performance.

Overview: Lite-On Technology Corporation, with a market cap of NT$273.77 billion, operates in the research, design, development, manufacture, and sale of modules and system solutions through its subsidiaries.

Operations: Lite-On Technology Corporation generates revenue through its subsidiaries by providing modules and system solutions.

Estimated Discount To Fair Value: 11.6%

Lite-On Technology is trading at NT$121.5, approximately 11.6% below its estimated fair value of NT$137.42, suggesting it may offer value based on cash flows. Earnings are forecast to grow significantly at 20.4% annually, outpacing the Taiwan market’s average growth rate of 13.3%. However, a dividend yield of 3.7% isn’t well covered by free cash flows, and the company’s return on equity is expected to be relatively low in three years at 19.2%.

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 SHSE:688293 TSE:4722 and TWSE:2301.

This article was originally published by Simply Wall St.

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