ASX Stocks Estimated To Be Trading Below Fair Value October 2026
As the Australian share market opens with mixed signals, investors are keeping a close eye on bond yields and geopolitical factors that could influence market sentiment. In this environment, identifying stocks trading below their fair value can be crucial for investors looking to capitalize on potential opportunities amidst ongoing uncertainties.
Top 10 Undervalued Stocks Based On Cash Flows In Australia
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Woodside Energy Group (ASX:WDS) | A$31.24 | A$40.38 | 22.6% |
| Westgold Resources (ASX:WGX) | A$5.20 | A$7.85 | 33.8% |
| Ricegrowers (ASX:SGLLV) | A$12.61 | A$16.39 | 23.1% |
| Qualitas (ASX:QAL) | A$2.27 | A$3.95 | 42.5% |
| Origin Energy (ASX:ORG) | A$11.01 | A$22.01 | 50% |
| NobleOak Life (ASX:NOL) | A$1.31 | A$2.03 | 35.5% |
| MotorCycle Holdings (ASX:MTO) | A$2.55 | A$4.39 | 41.9% |
| LaserBond (ASX:LBL) | A$0.525 | A$0.79 | 33.2% |
| Greatland Resources (ASX:GGP) | A$10.12 | A$15.68 | 35.5% |
| Ansell (ASX:ANN) | A$45.08 | A$62.20 | 27.5% |
We'll examine a selection from our screener results.
Greatland Resources (ASX:GGP)
Overview: Greatland Resources Limited is a gold and copper mining company with a market cap of A$6.80 billion.
Operations: The company generates revenue primarily from its Telfer-Havieron segment, amounting to A$2.26 billion.
Estimated Discount To Fair Value: 35.5%
Greatland Resources is trading at A$10.12, significantly below its estimated cash flow value of A$15.68, suggesting it may be undervalued based on cash flows. Despite a forecasted earnings decline of 4.2% per year over the next three years, recent financial results show substantial growth with sales reaching A$2.26 billion and net income at A$862.3 million for fiscal 2026, indicating strong past performance amidst insider selling concerns and low future revenue growth expectations.
- The analysis detailed in our Greatland Resources growth report hints at robust future financial performance.
- Click here and access our complete balance sheet health report to understand the dynamics of Greatland Resources.
Origin Energy (ASX:ORG)
Overview: Origin Energy Limited is an integrated energy company involved in natural gas exploration and production, electricity generation, and the wholesale and retail sale of electricity and gas, with a market cap of A$18.91 billion.
Operations: The company's revenue segments include Energy Markets, which generated A$15.26 billion, and Integrated Gas - Other, contributing A$307 million.
Estimated Discount To Fair Value: 50%
Origin Energy, trading at A$11.01, is valued significantly below its projected cash flow value of A$22.01, indicating potential undervaluation based on cash flows. Despite a 6.3% earnings growth last year and net income rising to A$1.57 billion for fiscal 2026, future forecasts show a decline in earnings by 8.1% annually over three years and slower revenue growth compared to the market, alongside insider selling and dividend coverage concerns.
- Our earnings growth report unveils the potential for significant increases in Origin Energy's future results.
- Navigate through the intricacies of Origin Energy with our comprehensive financial health report here.
Westgold Resources (ASX:WGX)
Overview: Westgold Resources Limited is involved in the exploration, development, and operation of gold mines in Western Australia, with a market cap of A$4.89 billion.
Operations: The company generates revenue from its Murchison segment, contributing A$1.71 billion, and its Southern Goldfields segment, adding A$732.04 million.
Estimated Discount To Fair Value: 33.8%
Westgold Resources, priced at A$5.2, trades well below its estimated future cash flow value of A$7.85, signaling undervaluation based on cash flows. Earnings surged significantly last year and are forecast to grow by 16.15% annually, outpacing the Australian market's growth rate. The company plans to expand its Meekatharra hub capacity by 61%, enhancing production and cash generation potential, supported by substantial reserves and strategic expansion projects in place for sustainable growth.
- Insights from our recent growth report point to a promising forecast for Westgold Resources' business outlook.
- Dive into the specifics of Westgold Resources here with our thorough financial health report.
Turning Ideas Into Actions
- Gain an insight into the universe of 10 Undervalued ASX Stocks Based On Cash Flows by clicking here.
- Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
- Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.
Looking For Alternative Opportunities?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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