Undervalued Predictable Companies - Discounted Free Cash Flow and Discounted Earnings

GuruFocus uses two methods – the Discounted Cash Flow method and Discounted Earnings method – to determine if a company is undervalued or overvalued.

The companies with a “Discounted Cash Flow Discount (%)” higher than 0 are considered undervalued companies based on the Discounted Cash Flow method. If the Discount (%) is lower than 0, then the companies are considered overvalued based on the Discounted Cash Flow method. Please click to see how GuruFocus calculates Intrinsic Value: DCF (FCF-based).

The companies with a “Discounted Earnings Discount (%)” higher than 0 are considered undervalued companies based on the Discounted Earnings method. If the Discount (%) is lower than 0, then the companies are considered overvalued based on the Discounted Earnings method. Please click to see how GuruFocus calculates Intrinsic Value: DCF (Earnings-based).

What are Undervalued-Predictable Companies & List of Undervalued-Predictable Stocks

EMBED

We applied the discounted cash flow and discounted earnings to the high Predictability Rank, and calculated the intrinsic values of the these companies. These are the companies that appeared to be undervalued as measured by discounted free cash flow model or discounted earnings model. The formula and methodology are described in What worked in the market from 1998-2008? Intrinsic Value, Discounted Cash Flow and Margin of Safety. The assumptions for the calculations are:

  1. We assumed a discount rate of 12%.
  2. The growth rate for the next 10 years are assumed to be the same as the average growth rate of the past 10 years. If the growth rate is higher than 20%, we will use 20%. If the growth rate is lower than 5%, we will use 5%.
  3. For the terminal values, we use 4% growth rate.
  4. In this page, we use TTM eps without NRI / free cash flow and 10-year compound earnings / free cash flow growth rate as default.

The intrinsic value of the companies are calculated with:

Intrinsic Value = Future Earnings at Growth Stage + Terminal Value

This page is for PremiumP Members Only.
Filters
Views
Default View
Chart
Map
40/Page
Total 160
  • 1
  • 2
  • 3
  • 4
Pages
More Views
Ticker Company Predictability Rank Price Discounted Free Cash Flow Discounted Earnings PE Ratio Dividend Yield %
Valuation Discount(%) Valuation Discount(%)
Take a 7-Day Free Trial
$25.68
$451
94%
$27
5%
15.13
3
$9.91
$110
91%
$35
72%
9.97
0.65
$71.78
$725
90%
$122
41%
11.23
3.40
$49.76
$462
89%
$80
38%
9.42
1.31
$17.62
$163
89%
$62
72%
9.34
0
$4.64
$41
89%
$5
7%
15.33
2.08
$5.44
$48
89%
$5
-9%
15.33
1.96
$95.07
$865
89%
$348
73%
9.53
3.45
$103.91
$946
89%
$348
70%
9.53
3.16
$104.41
$883
88%
$109
4%
13.92
3.20
$5.91
$46
87%
$9
34%
9.59
5.40
$66.01
$439
85%
$323
80%
8.54
2.76
$100.16
$686
85%
$209
52%
9.47
1.35
$15.70
$94
83%
$26
40%
12.56
1.59
$427.74
$2,569
83%
$1,579
73%
10.64
0
$70.81
$351
80%
$176
60%
16.90
0
$117.59
$585
80%
$124
5%
21
2.38
$158.80
$739
79%
$707
78%
8.22
0.59
$41.66
$177
76%
$46
9%
17.65
0.30
$103.69
$418
75%
$139
25%
12.80
3.28
$161.93
$639
75%
$340
52%
15.72
1.07
$123.15
$483
75%
$188
34%
13.87
1.43
$383.87
$1,517
75%
$410
6%
20.55
1.08
$248.33
$1,009
75%
$334
26%
21.92
0.90
$173.27
$654
74%
$178
3%
19.51
1.51
$131.73
$482
73%
$997
87%
11.72
2.05
$80.90
$289
72%
$225
64%
15.18
1.35
$117.86
$402
71%
$188
37%
19.51
0
$169.75
$569
70%
$260
35%
15.35
1.25
$77.37
$256
70%
$179
57%
13.07
2.27
$238.88
$804
70%
$333
28%
19.19
2
$65.39
$221
70%
$204
68%
13.48
0.81
$160.65
$517
69%
$225
29%
10.55
0.62
$22.29
$73
69%
$32
30%
10.22
3.23
$534.76
$1,631
67%
$1,122
52%
20.08
0
$38.71
$113
66%
$102
62%
11.91
1.86
$45.92
$137
66%
$81
43%
10.34
1.35
$104.16
$291
64%
$163
36%
14.86
0.73
$97.23
$261
63%
$90
-8%
15.89
1.03
$211.69
$566
63%
$381
44%
15.82
0.23
Total 160
  • 1
  • 2
  • 3
  • 4