Companies, such as Mayne Pharma 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.

Mayne Pharma Group Limited (ASX:MYX)

Mayne Pharma Group Limited manufactures and sells branded and generic pharmaceutical products worldwide. The company provides employment to 789 people and with the company’s market cap sitting at AUD A$1.08B, it falls under the small-cap group.

MYX’s stock is currently hovering at around -37% below its true value of $1.13, at a price of AU$0.71, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. Furthermore, MYX’s PE ratio stands at 11.49x while its Pharmaceuticals peer level trades at, 24.39x indicating that relative to its competitors, MYX can be bought at a cheaper price right now. MYX is also in good financial health, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.

More detail on Mayne Pharma Group here.

OPUS Group Limited (ASX:OPG)

OPUS Group Limited primarily provides printing and related services primarily in Australia and New Zealand. The company size now stands at 304 people and with the company’s market cap sitting at AUD A$47.41M, it falls under the small-cap group.

OPG’s shares are now hovering at around -31% beneath its actual value of $0.65, at a price of AU$0.45, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Additionally, OPG’s PE ratio is trading at around 7.54x while its Commercial Services peer level trades at, 16.46x suggesting that relative to its competitors, you can buy OPG’s shares at a cheaper price. OPG also has a healthy balance sheet, with short-term assets covering liabilities in the near future as well as in the long run. OPG also has a miniscule amount of debt on its balance sheet, which gives it headroom to grow and financial flexibility. Dig deeper into OPUS Group here.

Collins Foods Limited (ASX:CKF)

Collins Foods Limited operates, manages, and administers restaurants primarily in Australia, Thailand, Japan, China, Germany, and the Netherlands. Formed in 1968, and now run by Graham Maxwell, the company size now stands at 10,000 people and with the company’s market cap sitting at AUD A$600.97M, it falls under the small-cap category.

CKF’s shares are currently trading at -38% beneath its actual worth of $8.26, at a price tag of AU$5.16, based on my discounted cash flow model. This difference in price and value gives us a chance to buy low. Also, CKF’s PE ratio stands at around 21.38x while its Hospitality peer level trades at, 24.83x meaning that relative to its competitors, we can invest in CKF at a lower price. CKF is also a financially robust company, with current assets covering liabilities in the near term and over the long run.

More detail on Collins Foods 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.