Three Companies That May Be Priced Below Their Estimated Value In September 2026

The United States market has remained flat over the last week, but it is up 12% over the past year, with earnings forecasted to grow by 17% annually. In this context, identifying stocks that may be priced below their estimated value involves looking for companies with strong fundamentals and potential for growth that are not yet fully reflected in their current stock prices.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name	Current Price	Fair Value (Est)	Discount (Est)
Valley National Bancorp (VLY)	$13.67	$27.10	49.6%
Provident Financial Services (PFS)	$23.15	$43.08	46.3%
Pegasystems (PEGA)	$36.07	$69.64	48.2%
Northeast Bank (NBN)	$131.95	$247.33	46.6%
Futu Holdings (FUTU)	$111.36	$211.89	47.4%
Civista Bancshares (CIVB)	$27.23	$53.11	48.7%
Chagee Holdings (CHA)	$12.20	$22.53	45.9%
Capital Bancorp (CBNK)	$36.08	$66.89	46.1%
Autodesk (ADSK)	$218.64	$416.69	47.5%
Addus HomeCare (ADUS)	$118.06	$226.18	47.8%

Click here to see the full list of 46 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

H World Group (HTHT)

Overview: H World Group Limited develops and operates leased and owned, manachised, and franchised hotels in China with a market cap of approximately $13.14 billion.

Operations: The company's revenue is primarily generated from its China operations, which contributed CN¥21.85 billion, while its international segment added CN¥4.76 billion.

Estimated Discount To Fair Value: 38.2%

H World Group is trading at US$43.21, significantly below its estimated future cash flow value of US$69.92, indicating it may be undervalued based on cash flows. Despite forecasted earnings growth of 13.28% annually, which is slower than the broader U.S. market, the company recently completed a CNY 3.35 billion bond offering to support corporate activities and raised its full-year revenue guidance to 4%-8%.

• Our growth report here indicates H World Group may be poised for an improving outlook.
• Unlock comprehensive insights into our analysis of H World Group stock in this financial health report.

Valley National Bancorp (VLY)

Overview: Valley National Bancorp, with a market cap of $7.48 billion, operates as the holding company for Valley National Bank, offering a range of commercial, private banking, retail, insurance, and wealth management financial services.

Operations: Valley National Bancorp generates revenue through segments including Consumer Banking ($410.39 million), Commercial Banking ($1.47 billion), and Treasury and Corporate Other ($181.76 million).

Estimated Discount To Fair Value: 49.6%

Valley National Bancorp is trading at US$13.67, significantly below its estimated future cash flow value of US$27.1, suggesting undervaluation based on cash flows. Recent earnings results show strong performance with net income rising to US$170.89 million from US$133.17 million year-on-year and a completed share buyback worth US$20.09 million enhancing shareholder value. However, revenue growth forecasts at 11.6% per year lag behind the broader U.S market's expectations of 13.3%.

• The analysis detailed in our Valley National Bancorp growth report hints at robust future financial performance.
• Get an in-depth perspective on Valley National Bancorp's balance sheet by reading our health report here.

Gap (GAP)

Overview: The Gap, Inc. is an apparel retail company operating in the United States, Canada, Japan, Taiwan, and internationally with a market cap of approximately $7.09 billion.

Operations: The company's revenue primarily comes from its Retail - Apparel segment, generating $15.33 billion.

Estimated Discount To Fair Value: 37.1%

Gap is trading at US$20.87, well below its estimated future cash flow value of US$33.17, indicating potential undervaluation based on cash flows. Despite a 40.3% earnings growth over the past year and a completed share buyback worth US$599.22 million, revenue growth forecasts remain modest at 2.6% per year, trailing behind the broader U.S market's expectations of 13.4%. The company also faces challenges with an unstable dividend track record and anticipated earnings decline over the next three years.

• In light of our recent growth report, it seems possible that Gap's financial performance will exceed current levels.
• Dive into the specifics of Gap here with our thorough financial health report.

Where To Now?

• Access the full spectrum of 46 Undervalued US Stocks Based On Cash Flows by clicking on this link.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Searching for a Fresh Perspective?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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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