Stocks, such as Evergreen Gaming and Brampton Brick, are trading at a value below what they may actually be worth. There’s a few ways you can measure the value of a company – you can forecast how much money it will make in the future and base your valuation off of this, or you can look around at its peers of similar size and industry to roughly estimate what it should be worth. Below, I’ve created a list of companies that compare favourably in all criteria based on their most recent financial data, making them potentially good investments.

Evergreen Gaming Corporation (TSXV:TNA)

Evergreen Gaming Corporation engages in the gaming operations in the United States. Evergreen Gaming is headed by CEO Dawn Mangano. It currently has a market cap of CAD CA$22.90M placing it in the small-cap group

TNA’s stock is now hovering at around -38% below its true level of $0.28, at the market price of CA$0.17, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. Furthermore, TNA’s PE ratio is around 9.09x compared to its Hospitality peer level of, 17.68x indicating that relative to its peers, you can purchase TNA’s stock for a lower price right now. TNA is also a financially robust company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. The stock’s debt-to-equity ratio of 49.43% has been dropping over the past couple of years indicating its capability to reduce its debt obligations year on year. Interested in Evergreen Gaming? Find out more here.

Brampton Brick Limited (TSX:BBL.A)

Brampton Brick Limited, together with its subsidiaries, manufactures and sells masonry and landscape products in Canada and the United States. Established in 1871, and headed by CEO Jeffrey Kerbel, the company size now stands at 319 people and has a market cap of CAD CA$90.53M, putting it in the small-cap group.

BBL.A’s stock is currently floating at around -74% less than its actual worth of $31.76, at a price tag of CA$8.25, according to my discounted cash flow model. This difference in price and value gives us a chance to buy low. Additionally, BBL.A’s PE ratio is trading at around 15.22x against its its Basic Materials peer level of, 19.47x indicating that relative to its peers, we can invest in BBL.A at a lower price. BBL.A is also a financially robust company, as current assets can cover liabilities in the near term and over the long run. Finally, its debt relative to equity is 23.20%, which has been reducing over the past couple of years signalling its ability to reduce its debt obligations year on year. More detail on Brampton Brick here.

CRH Medical Corporation (TSX:CRH)

CRH Medical Corporation provides various products and services to gastroenterologists for the treatment of gastrointestinal diseases in the United States, Canada, and internationally. Established in 2000, and headed by CEO Edward Wright, the company currently employs 17 people and with the company’s market capitalisation at CAD CA$238.27M, we can put it in the small-cap group.

CRH’s shares are now trading at -44% under its actual worth of $5.83, at a price of CA$3.29, based on its expected future cash flows. The divergence signals an opportunity to buy CRH shares at a low price. Additionally, CRH’s PE ratio stands at around 28.9x while its Medical Equipment peer level trades at, 32.94x implying that relative to its competitors, you can purchase CRH’s stock for a lower price right now. CRH is also a financially robust company, as current assets can cover liabilities in the near term and over the long run.

Dig deeper into CRH Medical 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.