Stocks, such as Guardian Capital Group, trading at a market price below their true values are considered to be undervalued. Smart investors can make money from this discrepancy by buying these shares, because they believe the current market prices will eventually move towards their true value. If you’re looking for capital gains in your next investment, I suggest you take a look at my list of potentially undervalued stocks.

Guardian Capital Group Limited (TSX:GCG.A)

Guardian Capital Group Limited, through its subsidiaries, operates as a diversified financial services company in Canada, the United Kingdom, the United States, and the Caribbean. Started in 1962, and run by CEO George Mavroudis, the company now has 354 employees and has a market cap of CAD CA$742.27M, putting it in the small-cap stocks category.

GCG.A’s stock is currently hovering at around -36% lower than its actual worth of $42.27, at a price tag of $27.05, based on its expected future cash flows. This discrepancy gives us a chance to invest in GCG.A at a discount. Additionally, GCG.A’s PE ratio stands at 9.2x while its capital markets peer level trades at 13.8x, suggesting that relative to its peers, we can purchase GCG.A’s shares for cheaper. GCG.A is also strong financially, with near-term assets able to cover upcoming and long-term liabilities. Finally, its debt relative to equity is 13%, which has been diminishing over the past couple of years indicating its capability to reduce its debt obligations year on year. Continue research on Guardian Capital Group here.

Airboss of America Corp. (TSX:BOS)

AirBoss of America Corp., through its subsidiaries, develops, manufactures, and sells rubber-based products to the resource, military, automotive, and industrial markets primarily in Canada and the United States. The company now has 1028 employees and with the stock’s market cap sitting at CAD CA$236.40M, it comes under the small-cap category.

BOS’s stock is currently hovering at around -48% less than its intrinsic level of $20.21, at a price tag of $10.41, based on its expected future cash flows. This mismatch indicates a potential opportunity to buy low. What’s even more appeal is that BOS’s PE ratio is trading at around 18.8x compared to its chemicals peer level of 24.1x, meaning that relative to other stocks in the industry, you can buy BOS’s shares at a cheaper price. BOS is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities.

Dig deeper into Airboss of America here.

Omni-Lite Industries Canada Inc. (TSXV:OML)

Omni-Lite Industries Canada Inc. develops, produces, and markets precision components to Fortune 500 companies. Omni-Lite Industries Canada was formed in 1992 and with the stock’s market cap sitting at CAD CA$15.82M, it comes under the small-cap group.

OML’s shares are currently floating at around -45% less than its intrinsic value of $2.88, at a price tag of $1.58, according to my discounted cash flow model. This mismatch signals an opportunity to buy OML shares at a discount. Additionally, OML’s PE ratio stands at 16.2x while its machinery peer level trades at 23.7x, meaning that relative to its peers, you can buy OML’s shares at a cheaper price. OML is also a financially healthy company, with current assets covering liabilities in the near term and over the long run. OML also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. More detail on Omni-Lite Industries Canada here.

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.
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.