The Australian market is currently navigating a mix of influences, with the ASX 200 poised for a potential rebound following positive developments on Wall Street and a notable decrease in Brent crude prices. In this environment, identifying stocks that may be trading below their estimated value can provide opportunities for investors to capitalize on market fluctuations and economic conditions.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name Current Price Fair Value (Est) Discount (Est) Wrkr (ASX:WRK) A$0.115 A$0.20 43.6% Web Travel Group (ASX:WEB) A$2.81 A$4.81 41.6% ReadyTech Holdings (ASX:RDY) A$1.355 A$2.50 45.7% PEXA Group (ASX:PXA) A$13.23 A$24.86 46.8% NRW Holdings (ASX:NWH) A$6.67 A$13.15 49.3% Lovisa Holdings (ASX:LOV) A$22.13 A$41.30 46.4% Judo Capital Holdings (ASX:JDO) A$1.46 A$2.52 42.2% Integral Diagnostics (ASX:IDX) A$2.26 A$4.04 44% Boss Energy (ASX:BOE) A$1.335 A$2.63 49.2% Airtasker (ASX:ART) A$0.24 A$0.48 49.9%

Click here to see the full list of 35 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener.

James Hardie Industries

Overview: James Hardie Industries plc is involved in the manufacture and sale of fiber cement, fiber gypsum, and cement bonded boards across the United States, Australia, Europe, and New Zealand with a market cap of A$16.32 billion.

Operations: The company's revenue segments include $3.36 billion from the United States, $539.40 million from Europe, and $499.10 million from Australia and New Zealand.

Estimated Discount To Fair Value: 29.1%

James Hardie Industries is trading at A$28.13, which is 29.1% below its estimated future cash flow value of A$39.69, indicating it may be undervalued based on cash flows. Despite revenue growth forecasted at 10.8% annually, earnings are expected to grow significantly at 32.2%, outpacing the Australian market's average growth rate of 12%. However, profit margins have declined from last year and debt coverage by operating cash flow remains a concern amidst recent executive changes.

Our earnings growth report unveils the potential for significant increases in James Hardie Industries' future results. Click here and access our complete balance sheet health report to understand the dynamics of James Hardie Industries.ASX:JHX Discounted Cash Flow as at May 2026

NRW Holdings

Overview: NRW Holdings Limited, with a market cap of A$3.06 billion, offers diversified contract services to the resources and infrastructure sectors in Australia through its subsidiaries.

Operations: NRW Holdings Limited generates revenue from its key segments, including MET at A$1.08 billion, Civil at A$850.05 million, and Mining at A$1.50 billion.

Story Continues

Estimated Discount To Fair Value: 49.3%

NRW Holdings, trading at A$6.67, is significantly undervalued relative to its estimated future cash flow value of A$13.15, with a 49.3% discount to fair value. The company forecasts revenue growth of 7% annually and earnings growth of 23.64%, both surpassing the Australian market averages. Despite improved earnings per share and net income from last year, profit margins have decreased from 3.7% to 1.4%, and there has been substantial insider selling recently.

Our expertly prepared growth report on NRW Holdings implies its future financial outlook may be stronger than recent results. Take a closer look at NRW Holdings' balance sheet health here in our report.ASX:NWH Discounted Cash Flow as at May 2026

Supply Network

Overview: Supply Network Limited supplies aftermarket parts for commercial vehicles in Australia and New Zealand, with a market cap of A$1.39 billion.

Operations: The company's revenue segment includes the provision of aftermarket parts for the commercial vehicle sector, generating A$378.42 million.

Estimated Discount To Fair Value: 19.8%

Supply Network Limited is trading at A$31.86, below its estimated future cash flow value of A$39.73, reflecting a modest undervaluation. Recent earnings results show sales increased to A$200.14 million and net income rose to A$22.86 million for the half-year ended December 2025. Earnings are forecasted to grow by 15.1% annually, outpacing the Australian market's average growth rate of 12%. However, revenue growth remains moderate at 10.8% per year.

Our growth report here indicates Supply Network may be poised for an improving outlook. Click here to discover the nuances of Supply Network with our detailed financial health report.ASX:SNL Discounted Cash Flow as at May 2026

Seize The Opportunity

Click here to access our complete index of 35 Undervalued ASX Stocks Based On Cash Flows. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

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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.

Companies discussed in this article include ASX:JHX ASX:NWH and ASX:SNL.

This article was originally published by Simply Wall St.

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