3 Prominent Stocks Estimated to Be Undervalued by at Least 40.2%: A Value Investor's Opportunity in 2025

In the ever-shifting landscape of global markets, value investing remains a cornerstone strategy for discerning investors. As 2025 unfolds, a closer look at discounted cash flow (DCF) analyses reveals several prominent stocks trading at significant discounts to their intrinsic values. These discrepancies, often rooted in market mispricing, present compelling opportunities for those willing to look beyond short-term volatility. Below, we examine three such stocks, each estimated to be undervalued by at least 40.2%, and explore the rationale for their potential as long-term investments.

1. KeyCorp (KEY): A Banking Sector Bargain

The banking sector has faced persistent headwinds in 2025, with regulatory pressures and interest rate uncertainty dampening investor sentiment. Yet, KeyCorp, a regional banking giant, appears to be trading well below its intrinsic value. According to a report by Yahoo Finance, KeyCorp's stock price of $17.82 is significantly below its estimated fair value of $31.93, representing a discount of 44.2%. This gap suggests that the market may be underestimating the company's resilience in navigating a post-pandemic economic environment and its strategic focus on digital transformation. For value investors, this mispricing offers a chance to capitalize on a fundamentally sound institution at a historically attractive entry point.

2. Coeur Mining (CDE): Undervalued in the Resource Sector

The resource sector, particularly gold and silver miners, has seen cyclical swings in 2025, driven by macroeconomic uncertainty and inflationary pressures. Coeur Mining, a mid-cap precious metals producer, is one such company being overlooked by the market. indicates that Coeur's stock price of $15.63 is trading at a 49% discount to its estimated fair value of $30.65. For investors with a long-term horizon, this represents a rare opportunity to invest in a resource play at a substantial discount to its intrinsic value.

3. Moog Inc. (MOG.A): Aerospace and Defense at a Discount

The aerospace and defense sector, traditionally a bellwether for economic cycles, has experienced a correction in 2025 amid concerns over defense spending and supply chain bottlenecks. Moog Inc., a leading manufacturer of precision components for aerospace and defense systems, is trading at $214.77, a 42% discount to its estimated fair value of $370.38. This undervaluation appears to stem from a temporary discounting of future cash flows, despite the company's strong order backlog and critical role in next-generation defense and commercial aviation projects. For investors attuned to sector-specific dynamics, Moog's current valuation offers a compelling entry point into a high-margin industry with durable demand.

The Case for Value Investing in 2025

These three stocks exemplify the power of DCF analysis in identifying market mispricing. While the broader market remains fixated on near-term macroeconomic risks, value investors can leverage these discounts to build portfolios with asymmetric upside potential. The key lies in distinguishing between temporary dislocations and permanent impairments-a task that requires rigorous analysis and a long-term perspective.

As the year progresses, the challenge for investors will be to balance caution with conviction. The stocks highlighted above are not without risks, but their current valuations suggest that the market is not fully accounting for their long-term cash flow potential. For those willing to do the homework, these opportunities could prove to be the standout performers of the year.