Undervalued is a term used in the financial world that refers to a security or other type of investment selling for a stated price below the investment’s actual intrinsic value. A company’s intrinsic value is the present value of the free cash flows expected to be made by the company. Undervalued stocks can be evaluated by looking at the company’s financial statements and assessing its fundamentals, such as cash flow, return on assets, profit generation, and capital management, to determine its intrinsic value.
We screened the S&P 500, looking for the most undervalued companies, and then double-checked those stocks for the dividend payers. Five well-known companies look like outstanding ideas for investors to buy in 2025. All are rated Buy at top Wall Street firms we cover here at 24/7 Wall St.
This post originally appeared at 24/7 Wall St.