3 Australian Undervalued Stocks To Own In September 2026

Global government bond yields are nearing 4%, which lifts the hurdle rate investors demand and can punish companies that rely heavily on cheap debt. Australian businesses that already generate solid cash coming in the door and trade below estimated fair value can look more interesting when borrowing costs rise. This article highlights three stocks from our cash flow focused value screener that may warrant a closer look.

The three companies covered below are just a sample from this screen, and the full list includes 3 more businesses with equally compelling cash flow stories that are not covered in this article. To size up the full opportunity set, head straight into the Undervalued Stocks Based On Cash Flows screener.

Woodside Energy Group (ASX:WDS)

Woodside Energy Group is a large Perth based hydrocarbon producer. LNG projects such as Pluto, North West Shelf and Wheatstone drive the cash generation that anchors its inclusion in this cash flow focused value screener.

Woodside produces LNG, pipeline gas, crude oil and natural gas liquids across the Asia Pacific, Africa, the Americas and Europe. It generates about A$7.3b from Australia, A$4.6b from international operations and A$1.9b from marketing activities, and carries a market value near A$59.2b.

For investors considering discounted cash flow stories, Woodside Energy Group offers a large scale LNG platform tied directly to long term contracts and multi decade projects. A key question is how durable those cash streams are.

"Investor optimism appears driven by expectations for long-term demand growth in Asian and emerging markets, with Woodside's global LNG expansion (Louisiana, Scarborough) positioned to capture this demand. However, these assumptions may underestimate the potential for rapid decarbonization policies or renewable adoption, which could affect future revenue and volume growth if LNG demand softens in key markets."

Much of the eventual payoff for Woodside Energy Group rests on how one unseen pressure reshapes pricing power and long run LNG demand.

Those shifting pressures on LNG demand are exactly what the full narrative for Woodside Energy Group unpacks, highlighting where decarbonization risk could be masking Woodside Energy Group’s upside optionality.

Regis Resources (ASX:RRL)

Regis Resources is a Subiaco based gold producer whose Duketon and McPhillamys projects anchor its cash flow story, with A$1.5b from Duketon and A$897 million from Tropicana in Australia, and a market value near A$6.0b.

For this Undervalued Stocks Based On Cash Flows screen, Regis Resources matters because its operating mines and near term projects already convert gold in the ground into cash, which is exactly what a discounted cash flow lens is trying to value.

"Regulatory and environmental barriers are stifling new mine supply globally, which may increase the strategic value of established, expandable operations like those of Regis."

What happens to Regis Resources’ earnings power if a single key assumption about future gold pricing or project timing breaks.

If that single assumption proves too conservative or too harsh, the full narrative for Regis Resources shows where Regis Resources’ cash engine could be accelerating or stalling next.

Westgold Resources (ASX:WGX)

Westgold Resources is a Perth based gold miner whose Murchison operations generate about A$1.7b in revenue and Southern Goldfields adds roughly A$732 million, creating the cash flow profile that underpins this DCF driven screener, with the stock valued around A$5.3b.

For investors focused on real cash moving through a business, Westgold Resources offers a straightforward link between active gold production, processing hubs and the cash flows used to estimate fair value.

"The integration of the Karora transaction has significantly increased Westgold's production scale and operational flexibility, positioning the company to benefit fully from sustained global monetary instability and rising geopolitical tensions, with upside leverage to higher gold prices directly feeding into revenue and earnings."

What matters next is how one shift in cost and grade performance shapes the margin profile that underwrites those future cash flows.

As that margin equation shifts, the full narrative for Westgold Resources shows where Westgold Resources could see cash generation accelerating, risks receding and any overlooked upside quietly building.

Seeking Alternatives Before The Crowd?

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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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