Undervalued ASX Stocks: Identifying Deep-Value Opportunities in August 2025

In a market environment marked by volatility and divergent sector performances, value investors have a unique opportunity to capitalize on deeply discounted equities with strong fundamentals. As of August 2025, Trajan Group (TRJ), Resimac (RMC), and Elders (ELD) stand out as compelling candidates for patient, long-term investors willing to navigate short-term headwinds. These stocks trade at significant discounts to their estimated fair values—up to 48% in the case of RMC—while maintaining robust cash flow profiles and growth trajectories that could unlock substantial upside in the coming years.

Trajan Group (TRJ): A Biotech Play with Break-Even Potential

Trajan Group (ASX:TRJ) is trading at AU$0.93, a 38% discount to its intrinsic value estimate of AU$1.50 [2]. Despite a projected return on equity (ROE) of just 7.7% in three years [3], the company’s 108.7% annual earnings growth and 6.4% revenue expansion suggest a path to profitability. Trajan’s liquidity position is solid, with cash flow fundamentals supporting operations for over three years [2]. The stock’s 3.2% discount to the AU$1.45 analyst price target [2] reflects skepticism about its ability to scale its disruptive technologies segment, but this pessimism creates a margin of safety for investors who believe in its long-term R&D pipeline.

Resimac (RMC): A High-Yield Lender with Liquidity Risks

Resimac (ASX:RMC) offers a 48% discount to its estimated fair value of AU$1.99 [1], trading at AU$1.04 despite a 60.5% annual revenue growth forecast. The lender’s recent buybacks and AU$870.99 million cash position [1] provide a buffer against its TTM operating cash outflow of -$431.11 million [3]. While its 6.73% dividend yield is unsustainable given weak earnings coverage [1], the company’s dominance in home and asset finance lending positions it to benefit from a potential economic rebound. Investors must weigh the risks of high debt against the potential for earnings normalization in a low-interest-rate environment.

Elders (ELD): A Rural Staple with Structural Tailwinds

Elders (ASX:ELD) is arguably the most compelling of the three, trading at AU$7.44 versus an estimated fair value of AU$14.04 [1], a 47% discount. The agricultural services provider reported a record AU$33.62 million net income [2], supported by AU$82.948 million in operating cash flow and AU$35.586 million in free cash flow [2]. While its 10.8% ROE [2] is modest, Elders’ geographic diversification and essential services model offer resilience in a cyclical market. The company’s AU$195.830 million in debt issuance [2] raises leverage concerns, but its capital expenditures and cash flow generation suggest disciplined reinvestment.

Strategic Advantages of Deep-Value Investing

Buying quality assets at a discount requires conviction, especially when market pessimism drives prices below intrinsic value. Trajan, Resimac, and Elders each present unique catalysts: regulatory approvals for Trajan’s biotech innovations, a potential normalization of Resimac’s lending margins, and Elders’ exposure to rural demand cycles. While none are without risk—low ROEs, liquidity pressures, or earnings volatility—these stocks offer asymmetric reward potential for investors with a multi-year horizon.

In a mixed market, the key is to focus on companies with durable competitive advantages and strong balance sheets. Trajan’s R&D pipeline, Resimac’s asset-light lending model, and Elders’ regional dominance all qualify as such advantages. By purchasing these stocks at a discount, investors can position themselves to benefit from both earnings growth and mean reversion in valuation multiples.

**Source:[1] ASX Value Stocks Trading Below Estimated Worth In August [https://sg.finance.yahoo.com/news/asx-value-stocks-trading-below-193426062.html][2] ASX Stocks Including Elders That May Be Priced Below Their Fair Value [https://finance.yahoo.com/news/asx-stocks-including-elders-may-193753288.html][3] Resimac Group Limited (RMC.AX) Cash Flow - Yahoo Finance [https://finance.yahoo.com/quote/RMC.AX/cash-flow/]