Top Rated AIM Stocks You Can Buy For Cheap
Companies that are recently trading at a market price lower than their real values include Draper Esprit and HML Holdings. 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.
Draper Esprit plc (AIM:GROW)
Draper Esprit plc, formerly known as Ingleby (1994) plc, is a private equity and venture capital firm specializing in any stage in the lifecycle of a business from seed and series A stage, growth capital to pre-IPO investments, late stage, cross-stage investments, buyouts, PIPES, and also makes direct and secondary investments in portfolio companies. Founded in 1984, and run by CEO Simon Cook, the company currently employs 17 people and has a market cap of GBP £336.58M, putting it in the small-cap stocks category.
GROW’s stock is now floating at around -23% below its actual value of £6.02, at a price of UK£4.66, based on its expected future cash flows. This mismatch signals an opportunity to buy GROW shares at a discount. Also, GROW’s PE ratio stands at 9.47x against its its Capital Markets peer level of, 15.48x meaning that relative to its competitors, you can buy GROW’s shares at a cheaper price. GROW is also in great financial shape, as current assets can cover liabilities in the near term and over the long run. GROW has zero debt on its books as well, meaning it has no long term debt obligations to worry about. More on Draper Esprit here.
HML Holdings plc (AIM:HMLH)
HML Holdings plc, together with its subsidiaries, provides residential property management services in the United Kingdom. Founded in 1991, and now run by Robert Plumb, the company currently employs 500 people and with the company’s market cap sitting at GBP £13.87M, it falls under the small-cap stocks category.
HMLH’s stock is now trading at -63% less than its value of £0.83, at a price tag of UK£0.30, based on its expected future cash flows. The mismatch signals a potential chance to invest in HMLH at a discounted price. Moreover, HMLH’s PE ratio stands at around 12.63x against its its index peer level of, 17.06x meaning that relative to its comparable set of companies, you can purchase HMLH’s stock for a lower price right now. HMLH also has a healthy balance sheet, as current assets can cover liabilities in the near term and over the long run.
Dig deeper into HML Holdings here.
TBC Bank Group PLC (LSE:TBCG)
TBC Bank Group PLC, through its subsidiaries, provides banking, leasing, brokerage, and card processing services to corporate and individual customers in Georgia. Founded in 1992, and now led by CEO Vakhtang Butskhrikidze, the company size now stands at 7,084 people and with the stock’s market cap sitting at GBP £1.01B, it comes under the small-cap stocks category.
TBCG’s shares are now trading at -52% under its true value of GEL38.96, at a price tag of UK£18.52, based on its expected future cash flows. This discrepancy signals a potential opportunity to buy TBCG shares at a low price. In terms of relative valuation, TBCG’s PE ratio stands at 9.42x while its Banks peer level trades at, 17.26x implying that relative to its comparable set of companies, TBCG’s stock can be bought at a cheaper price. TBCG also has a healthy balance sheet, as current assets can cover liabilities in the near term and over the long run.
More detail on TBC Bank Group 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.
