Best Undervalued Stocks to Watch in 2025
Undervalued stocks in brief
‘Undervalued’ stocks refers to companies sporting a market capitalisation which is less than what is presumed to be their true intrinsic value — where intrinsic value is based on an analysis of a company’s fundamentals, such as its assets, earnings, and cash flow, rather than market sentiment or speculation.
It’s often calculated through discounted cash flow analysis, a dividend discount model or a comparison of the company’s price-to-earnings ratio to the sector average. Buying undervalued stocks is the keystone of all value investing strategies, including Warren Buffett’s investing philosophy.
The general idea with undervalued stocks is that the market has made an error in its valuation of the…
