Undervalued companies, such as ThreeD Capital and High Arctic Energy Services, trade at a price less than their true values. There’s a few ways you can value a company. The most popular methods include discounting the company’s cash flows it is expected to create in the future, or comparing its price to its peers or the value of its assets. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good investments.
ThreeD Capital Inc. (CNSX:IDK)
ThreeD Capital Inc., formerly known as Brownstone Energy Inc., is a venture capital firm specializing in early stage and growth capital opportunistic investments. ThreeD Capital was founded in 1987 and has a market cap of CAD CA$27.54M, putting it in the small-cap group.
IDK’s stock is currently floating at around -76% lower than its actual worth of $1.33, at a price tag of $0.33, according to my discounted cash flow model. The mismatch signals a potential chance to invest in IDK at a discounted price. Furthermore, IDK’s PE ratio is around 5x relative to its capital markets peer level of 13.8x, meaning that relative to other stocks in the industry, we can purchase IDK’s shares for cheaper. IDK is also a financially healthy company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. IDK also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. Continue research on ThreeD Capital here.