3 Stocks With Estimated Discounts Up To 49.7% Below Intrinsic Value

This article highlights top 10 undervalued US stocks based on cash flows, with discounts ranging from 48.1% to 49.8%. Notable picks include Rhythm Pharmaceuticals, with an estimated discount to fair value of 49.7%, and Klaviyo, with a 39.6% discount. These companies have strong growth potential and may offer attractive valuations despite recent share price volatility and ongoing losses.

The electric vehicle (EV) market, once heralded for its potential, has seen a significant downturn in stock prices due to supply chain issues, interest rate pressures, and intense competition. However, August 2025 offers a compelling opportunity for investors with a long-term perspective, with two standout names: Nio (NYSE: NIO) and Rivian Automotive (NASDAQ: RIVN) [1].

Nio, China's premium EV daredevil, has seen its share price drop to under $5, valuing the company at about 1.06 times sales. This is significantly cheaper than Tesla's valuation of about 11.5 times sales. Nio's unique battery-swap technology allows drivers to swap a drained pack for a full one in less time than it takes to grab a latte, offering unparalleled convenience. Despite its growth in revenue, reaching $9.4 billion over the past 12 months, Nio has yet to achieve profitability. Gross margins remain stubbornly in the mid-single digits, and the company posted a loss of roughly $3.3 billion last year. However, the recent launch of its mass-market Onvo L90 SUV, which reportedly sold out in just three hours, signals a turnaround. Management aims for adjusted profitability by late 2025 and plans to expand margins and build out its infrastructure moat in battery swaps and autonomous tech [1].

Rivian, known for its rugged designs and off-road capability, has faced a challenging near term. Deliveries dropped about 22% year over year in the second quarter to 10,661 vehicles. However, Rivian is strategic in its approach, aiming to bring its lower-priced R2 SUV to market in 2026 to tap a much larger customer base. The company has a key partnership with Amazon, which is rolling out Rivian-built electric delivery vans. The near term may be tough, but Rivian's $4.7 billion cash pile and a fresh $1 billion investment from Volkswagen provide breathing room. At today's share price, Rivian's price-to-sales ratio is about 2.6, far lower than Tesla's. If it can nail the R2 launch, keep Amazon vans rolling, and tighten up its cost structure, sentiment could swing fast in the right direction [1].

Both Nio and Rivian face headwinds but carry credible growth stories. Their current prices leave plenty of room for increases, making them attractive picks for investors with a long-term perspective. The EV market will test your patience, but these stocks have something real going for them. Do the experts think Nio is a buy right now? The Motley Fool’s expert analyst team has just revealed their top 10 stocks to buy now, including Nio [1].

References:
[1] https://finance.yahoo.com/news/2-top-electric-vehicle-ev-170500974.html