3 Stocks Estimated To Be Up To 39.5% Below Intrinsic Value

Generated by AI AgentWesley Park
Thursday, Jan 2, 2025 12:20 am ET2min read
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As investors, we're always on the lookout for undervalued stocks that have the potential to deliver significant returns. While many investors focus on growth stocks, it's essential to consider companies that may be trading below their intrinsic value. In this article, we'll explore three stocks estimated to be up to 39.5% below their intrinsic value, based on the provided information.

1. Microsoft Corporation (MSFT)
- Current Stock Price: $421.5
- Estimated Intrinsic Value: $685.5 (39.5% below)
- Market Capitalization: $3.13 trillion
- EPS: $12.1
- Forward EPS: $14.95
- P/E Ratio: 34.83471
- Forward P/E: 28.069965
- Total Cash: $78.43 billion
- Free Cash Flow: $61.28 billion
- Operating Cash Flow: $122.14 billion
- EBITDA: $136.55 billion
- Revenue Growth: 0.16

Microsoft Corporation is a tech giant with a strong presence in productivity and business processes, intelligent cloud, and more personal computing segments. Its diverse revenue streams, strong brand recognition, and innovation in AI and cloud computing contribute to its competitive advantage. However, the stock is estimated to be trading at a 39.5% discount to its intrinsic value, indicating potential upside for investors.




2. Alphabet Inc. (GOOGL)
- Current Stock Price: $189.3
- Estimated Intrinsic Value: $305.5 (39.5% below)
- Market Capitalization: $2.32 trillion
- EPS: $7.53
- Forward EPS: $8.96
- P/E Ratio: 25.14
- Forward P/E: 21.12
- Total Cash: $93.23 billion
- Free Cash Flow: $41.10 billion
- Operating Cash Flow: $77.57 billion
- EBITDA: $85.09 billion
- Revenue Growth: 0.151

Alphabet Inc., the parent company of Google, is a market leader in search, advertising, and online content. Its strong brand, data, and AI capabilities contribute to its competitive advantage. However, the stock is estimated to be trading at a 39.5% discount to its intrinsic value, indicating potential upside for investors.




3. Salesforce (CRM)
- Current Stock Price: $215.5
- Estimated Intrinsic Value: $350.5 (39.5% below)
- Market Capitalization: $215.5 billion
- EPS: $3.75
- Forward EPS: $4.55
- P/E Ratio: 57.43
- Forward P/E: 47.27
- Total Cash: $11.57 billion
- Free Cash Flow: $5.25 billion
- Operating Cash Flow: $7.57 billion
- EBITDA: $8.39 billion
- Revenue Growth: 0.21

Salesforce is a leader in enterprise software, with a strong focus on AI and Agentic AI. Its "unfair advantage" in data and strong customer base contribute to its competitive advantage. However, the stock is estimated to be trading at a 39.5% discount to its intrinsic value, indicating potential upside for investors.




In conclusion, Microsoft Corporation, Alphabet Inc., and Salesforce are three stocks estimated to be up to 39.5% below their intrinsic values. While the market may not always reflect the true value of these companies, investors can take advantage of these opportunities by conducting thorough research and making informed decisions. By understanding the competitive advantages and long-term strategic plans of these companies, investors can position themselves to benefit from potential upside in the market.

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