Undervalued companies are those that trade at a price lower than their actual values, such as Grand Peak Capital and Guardian Capital Group. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
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 with the company’s market capitalisation at CAD CA$15.62M, we can put it in the small-cap group.
IDK’s shares are currently floating at around -87% lower than its value of $1.33, at a price of CA$0.17, based on its expected future cash flows. This discrepancy gives us a chance to invest in IDK at a discount. In addition to this, IDK’s PE ratio stands at around 2.7x compared to its Capital Markets peer level of, 14.11x indicating that relative to other stocks in the industry, IDK’s shares can be purchased for a lower price. IDK is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities. IDK also has no debt on its balance sheet, which gives it headroom to grow and financial flexibility. More detail on ThreeD Capital here.