As the Australian market navigates a period of uncertainty marked by mixed unemployment figures and global economic tensions, investors are keenly observing opportunities that may arise from these fluctuations. In such an environment, identifying stocks that could be trading below their estimated value can be particularly appealing, as they offer potential for growth when market conditions stabilize.
Name
Current Price
Fair Value (Est)
Discount (Est)
Telix Pharmaceuticals (ASX:TLX)
A$10.95
A$20.29
46%
Smart Parking (ASX:SPZ)
A$1.27
A$2.25
43.7%
Ramelius Resources (ASX:RMS)
A$4.92
A$8.67
43.2%
LGI (ASX:LGI)
A$4.20
A$7.75
45.8%
Kogan.com (ASX:KGN)
A$3.94
A$7.00
43.7%
Galan Lithium (ASX:GLN)
A$0.47
A$0.82
43%
DroneShield (ASX:DRO)
A$4.47
A$8.28
46%
Cromwell Property Group (ASX:CMW)
A$0.43
A$0.85
49.3%
Betmakers Technology Group (ASX:BET)
A$0.195
A$0.34
43%
Advanced Braking Technology (ASX:ABV)
A$0.14
A$0.25
43.7%
Here we highlight a subset of our preferred stocks from the screener.
Overview: Life360, Inc. operates a technology platform for locating people, pets, and things across North America, Europe, the Middle East, Africa, and internationally with a market cap of A$8.09 billion.
Operations: The company generates revenue primarily from its Software & Programming segment, which amounted to $459.03 million.
Estimated Discount To Fair Value: 30.6%
Life360 is trading at A$33.79, significantly below its estimated future cash flow value of A$48.71, indicating potential undervaluation. The company recently raised its earnings guidance for 2025, expecting revenue growth of 31-32% year-over-year to US$486-489 million. Life360’s earnings are forecasted to grow at 30.8% annually, outpacing the Australian market average of 12.6%. However, its Return on Equity is projected to remain low at 13.1% in three years.
ASX:360 Discounted Cash Flow as at Jan 2026
Overview: James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded boards across the United States, Australia, Europe, and New Zealand with a market cap of A$20.66 billion.
Operations: The company’s revenue segments include $524.40 million from Europe and $490.70 million from Australia & New Zealand.
Estimated Discount To Fair Value: 11.7%
James Hardie Industries, trading at A$35.62, is priced below its estimated future cash flow value of A$40.34, suggesting it may be undervalued based on cash flows. Despite a challenging financial year with net income dropping to US$6.8 million from US$238.7 million the previous year, revenue growth is forecasted at 12.8% annually, exceeding the Australian market average of 6.3%. However, profit margins have declined and debt coverage by operating cash flow remains weak.
ASX:JHX Discounted Cash Flow as at Jan 2026
Overview: Servcorp Limited offers executive serviced and virtual offices, coworking spaces, and various business support services across multiple regions including Australia, New Zealand, Southeast Asia, the United States, Europe, the Middle East, and North Asia with a market cap of A$813.25 million.
Operations: The company’s revenue primarily comes from its real estate rental segment, which generated A$349.86 million.
Estimated Discount To Fair Value: 20.8%
Servcorp, currently trading at A$8.15, is priced below its estimated future cash flow value of A$10.29, highlighting potential undervaluation based on cash flows. The company has raised its earnings guidance for 2026 with expected Underlying NPBIT between A$80 million and A$84 million. Earnings are forecast to grow 17.91% annually, outpacing the Australian market’s 12.6%. However, Servcorp’s dividend track record remains unstable despite strong profit growth last year at 36.1%.
ASX:SRV Discounted Cash Flow as at Jan 2026
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:360 ASX:JHX and ASX:SRV.
This article was originally published by Simply Wall St.
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