Undervalued companies are those that trade at a price lower than their actual values, such as Dark Horse Resources and CTI Logistics. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.

Dark Horse Resources Limited (ASX:DHR)

Dark Horse Resources Limited engages in the exploration and development of mineral resource projects primarily in Argentina. Dark Horse Resources was started in 1995 and with the company’s market capitalisation at AUD A$33.49M, we can put it in the small-cap stocks category.

DHR’s stock is now trading at -45% below its intrinsic level of $0.04, at the market price of AU$0.02, based on my discounted cash flow model. The difference between value and price signals a potential opportunity to buy DHR shares at a discount. In terms of relative valuation, DHR’s PE ratio is trading at 5.54x while its Metals and Mining peer level trades at, 13.54x meaning that relative to its comparable set of companies, we can buy DHR’s stock at a cheaper price today. DHR also has a healthy balance sheet, with short-term assets covering liabilities in the near future as well as in the long run.

Dig deeper into Dark Horse Resources here.

CTI Logistics Limited (ASX:CLX)

CTI Logistics Limited provides transport and logistics services in Australia. The company was established in 1974 and has a market cap of AUD A$76.41M, putting it in the small-cap category.

CLX’s shares are currently floating at around -54% beneath its true level of $2.23, at a price of AU$1.03, according to my discounted cash flow model. This discrepancy gives us a chance to invest in CLX at a discount.

CLX is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities. It’s debt-to-equity ratio of 52.79% has been falling for the past few years indicating CLX’s capability to pay down its debt. Interested in CTI Logistics? Find out more here.

Ainsworth Game Technology Limited (ASX:AGI)

Ainsworth Game Technology Limited designs, develops, produces, leases, sells, and services gaming machines, and other related equipment and services. Ainsworth Game Technology was started in 1995 and has a market cap of AUD A$433.93M, putting it in the small-cap stocks category.

AGI’s stock is currently hovering at around -49% below its actual worth of $2.58, at the market price of AU$1.31, according to my discounted cash flow model. This mismatch signals an opportunity to buy AGI shares at a discount. Additionally, AGI’s PE ratio is around 15.42x against its its Hospitality peer level of, 25.41x suggesting that relative to its competitors, we can buy AGI’s stock at a cheaper price today. AGI is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities.

Interested in Ainsworth Game Technology? Find out more 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.