As the Australian market grapples with uncertainty, driven by unexpected inflation figures and fluctuating unemployment rates, investors are cautiously navigating a landscape marked by extreme fear on Wall Street. In this environment, identifying undervalued stocks can offer potential opportunities for those looking to capitalize on discrepancies between current stock prices and intrinsic value.
|
Name |
Current Price |
Fair Value (Est) |
Discount (Est) |
|
Webjet Group (ASX:WJL) |
A$0.78 |
A$1.31 |
40.6% |
|
Telix Pharmaceuticals (ASX:TLX) |
A$14.20 |
A$25.77 |
44.9% |
|
Symal Group (ASX:SYL) |
A$2.50 |
A$4.60 |
45.7% |
|
Smart Parking (ASX:SPZ) |
A$1.31 |
A$2.26 |
42.1% |
|
Regal Partners (ASX:RPL) |
A$2.85 |
A$4.92 |
42.1% |
|
NRW Holdings (ASX:NWH) |
A$5.09 |
A$9.02 |
43.6% |
|
Immutep (ASX:IMM) |
A$0.28 |
A$0.49 |
42.8% |
|
Guzman y Gomez (ASX:GYG) |
A$23.43 |
A$39.37 |
40.5% |
|
Collins Foods (ASX:CKF) |
A$11.00 |
A$17.99 |
38.8% |
|
CleanSpace Holdings (ASX:CSX) |
A$0.71 |
A$1.35 |
47.6% |
Let’s take a closer look at a couple of our picks from the screened companies.
Overview: ALS Limited provides professional technical services focused on testing, measurement, and inspection across regions including Africa, Asia Pacific, Europe, the Middle East, North Africa, and the United States with a market capitalization of A$10.90 billion.
Operations: The company’s revenue is derived from two main segments: Commodities, contributing A$1.09 billion, and Life Sciences, generating A$1.91 billion.
Estimated Discount To Fair Value: 20.6%
ALS, trading at A$21.49, is undervalued based on cash flows with a fair value estimate of A$27.05. Despite its high debt levels, ALS’s earnings are projected to grow 13.43% annually, outpacing the Australian market’s 11.9%. The company’s revenue growth of 6.4% per year also exceeds the market average of 5.9%. With strong forecasted return on equity and substantial past profit growth, ALS presents an attractive investment opportunity under current valuations.
Overview: DroneShield Limited develops, commercializes, and sells hardware and software technology for drone detection and security in Australia and the United States, with a market cap of A$2.36 billion.
Operations: The company generates revenue of A$107.17 million from its Aerospace & Defense segment.
Estimated Discount To Fair Value: 12.4%
DroneShield, trading at A$2.60, is undervalued based on cash flows with a fair value estimate of A$2.97. The company’s earnings are forecast to grow significantly at 63.9% annually, outpacing the Australian market’s 11.9%. Despite lower profit margins compared to last year and recent insider selling, DroneShield’s revenue growth projection of 40.8% per year remains robust. Recent leadership changes and strategic partnerships further position the company for technological innovation and global expansion in defence markets.
Overview: Telix Pharmaceuticals Limited is a commercial-stage biopharmaceutical company that develops and commercializes therapeutic and diagnostic radiopharmaceuticals, with a market cap of A$4.81 billion.
Operations: The company’s revenue segments include Therapeutics at $7.29 million, Precision Medicine at $575.13 million, and Manufacturing Solutions at $115.57 million.
Estimated Discount To Fair Value: 44.9%
Telix Pharmaceuticals, trading at A$14.20, is significantly undervalued with a fair value estimate of A$25.77. Despite legal challenges over alleged misstatements, the company reported strong revenue growth to A$206 million in Q3 2025 and raised its annual guidance to between A$800 million and A$820 million. Earnings are projected to grow faster than the market at 47.5% annually, though profit margins have decreased from last year’s levels due to large one-off items impacting results.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ASX:ALQ ASX:DRO and ASX:TLX.
This article was originally published by Simply Wall St.
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