Over the last 7 days, the United States market has risen 1.6%, contributing to a 28% increase over the past year, with earnings anticipated to grow by 17% annually in the coming years. In this context of robust market performance, identifying stocks that are trading below their intrinsic value can offer investors potential opportunities for growth and value appreciation.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Workday (WDAY)	$157.23	$311.80	49.6%
Uranium Energy (UEC)	$13.59	$26.26	48.3%
ServiceNow (NOW)	$135.86	$263.36	48.4%
Rayonier (RYN)	$20.54	$40.26	49%
Merck (MRK)	$115.17	$228.62	49.6%
Live Oak Bancshares (LOB)	$37.36	$74.21	49.7%
Intapp (INTA)	$26.03	$50.27	48.2%
First Merchants (FRME)	$39.53	$76.26	48.2%
FB Financial (FBK)	$51.91	$101.61	48.9%
AbbVie (ABBV)	$212.93	$417.04	48.9%

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

Workday (WDAY)

Overview: Workday, Inc. offers enterprise cloud applications globally and has a market cap of approximately $36.11 billion.

Operations: The company generates revenue primarily from its cloud applications segment, which accounts for $9.85 billion.

Estimated Discount To Fair Value: 49.6%

Workday is trading at US$157.23, significantly below its estimated future cash flow value of US$311.8, indicating it may be undervalued based on cash flows. Despite a forecasted slower revenue growth rate of 9.6% annually compared to the market, earnings are expected to grow at 23% per year, outpacing the US market's growth rate. Recent strategic alliances with Google Cloud and product innovations enhance its AI capabilities in HR and finance workflows, potentially driving future profitability improvements.

ServiceNow (NOW)

Overview: ServiceNow, Inc. offers cloud-based solutions for digital workflows across various regions including North America, Europe, the Middle East and Africa, Asia Pacific, and globally with a market cap of $128.26 billion.

Operations: The company generates revenue of $13.96 billion from its Internet Software & Services segment, providing cloud-based digital workflow solutions across multiple regions.

Estimated Discount To Fair Value: 48.4%

ServiceNow, priced at US$135.86, is trading below its estimated future cash flow value of US$263.36, highlighting potential undervaluation. The company anticipates earnings growth of 23.38% annually, surpassing the broader US market's forecasted growth rate. Despite insider selling and a lower projected return on equity, ServiceNow's recent partnerships with Experian and Boomi aim to enhance AI-driven workflow capabilities across various sectors, which could support improved operational efficiencies and profitability over time.

Sea (SE)

Overview: Sea Limited is a technology company operating through its subsidiaries in Southeast Asia, Latin America, the rest of Asia, and internationally with a market capitalization of approximately $55.45 billion.

Operations: The company's revenue is primarily derived from its E-commerce segment (Shopee) with $18.15 billion, followed by Digital Financial Services (Monee) at $4.25 billion, and Digital Entertainment (Garena) contributing $2.61 billion.

Estimated Discount To Fair Value: 36.3%

Sea is trading at US$95.25, significantly below its estimated future cash flow value of US$149.63, suggesting undervaluation based on cash flows. The company's earnings are projected to grow at 24% annually, outpacing the US market's growth rate of 17%. Recent buybacks and strong revenue growth to US$7.1 billion in Q1 2026 further support its financial health, although return on equity remains forecasted at a modest 16.7%.

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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.