With US 10 year yields hovering near recent highs, investors are paying closer attention to what they are actually paying for each dollar of future cash flow. Higher yields often make expensive growth stories harder to justify, which can leave solid cash generators trading at a discount. This article highlights three stocks from the Undervalued Stocks Based On Cash Flows screener that look mispriced on SWS DCF valuation.

The stocks highlighted below are just a starting sample, with the full screen surfacing 145 more companies whose cash flow stories and DCF valuations may be just as compelling for value oriented investors. If you want to identify and analyze those opportunities in a structured way, head straight to the Undervalued Stocks Based On Cash Flows screener.

Bloom Energy (BE)

Overview: Bloom Energy provides on-site solid oxide fuel cell systems, branded as the Bloom Energy Server, that turn fuels such as natural gas, biogas and hydrogen into electricity and then generate recurring cash flows through multi-year power, fuel and maintenance contracts. Its Bloom Electrolyzer adds a hydrogen production leg to the business. The company targets utilities, data centers and a range of commercial customers that want reliable power with long-term service support. This aligns directly with the screener’s focus on contract-backed cash flow potential.

Operations: Bloom Energy generates about US$3.1b in revenue from electric equipment, with roughly US$2.9b from the United States and around US$261 million from other countries.

Market Cap: US$60.1b

Bloom Energy may warrant closer attention for investors focused on long-term cash flow, since its Bloom Energy Server platform involves multi-year power and service contracts that the SWS DCF model currently values above the share price, with an estimated 40.1% discount to fair value. Record Q2 2026 revenue above US$1.0b, rising margins and a growing backlog tied to AI data center power projects are cited as reasons recurring cash flows could build from here. At the same time, funding structure, a recent large loss and past shareholder dilution mean those potential future cash flows carry execution risk. For investors assessing whether Bloom’s contract pipeline justifies the current valuation gap, this is a story worth following closely.

Bloom Energy’s contract-backed cash flows and SWS’s estimated 40.1% discount to fair value suggest the market may be mispricing this story. Get the full picture in the DCF valuation analysis for Bloom Energy and see what that gap might be missing.

Broadcom (AVGO)

Overview: Broadcom is a digital infrastructure company that designs semiconductor chips for networking, storage and wireless devices, and also sells VMware based infrastructure software that underpins private cloud, security and mainframe workloads. For this screener, the key connection is Broadcom’s Infrastructure Software segment, where VMware Cloud Foundation and related enterprise products produce high margin, subscription and support cash flows that can be valued more predictably than its hardware driven chip business.

Operations: Broadcom generates about US$27.7b from Infrastructure Software and around US$47.8b from Semiconductor Solutions and related intellectual property licensing.

Market Cap: US$1,706.8b

Broadcom may be worth a closer look if you want exposure to AI and digital infrastructure but still care about cash flow quality. The stock currently trades about 14.5% below the SWS DCF estimate of fair value. Profit margins sit at 38.8%, and earnings growth has been very large year on year, helped by recurring VMware software revenue and demand for AI networking and custom silicon. The catch is that Broadcom uses significant debt and is pursuing up to US$100b of AI related financing arrangements. Investors therefore need to weigh cash flow visibility against higher financial complexity, insider selling and a premium P/E. The full story outlines how that tension could create both opportunity and risk.

Broadcom’s AI push and VMware cash flows are being priced like a simple growth story, yet the real puzzle is how those cash flows compare with its valuation and leverage. Get the full context in the DCF valuation analysis for Broadcom

Super Micro Computer (SMCI)

Overview: Super Micro Computer designs and builds high performance server and storage systems, with a strong focus on liquid and air cooled AI servers, GPU dense racks and full rack AI data center deployments that can support recurring deployment and services cash flows. Alongside these AI and high performance computing systems, it sells modular server components, management software and support services to enterprise, cloud, 5G and edge customers worldwide.

Operations: Super Micro Computer generates about US$39.1b in revenue from developing and providing high performance server solutions.

Market Cap: US$22.8b

Super Micro Computer is drawing attention because its AI focused server platforms and rack level deployment services are feeding a record backlog and rising margins. Yet the stock still trades below the SWS DCF fair value estimate and at a lower P/E than many AI exposed peers. That combination suggests the market may be underestimating how much cash flow could come from liquid cooled racks, turnkey data center building block solutions and partnerships with Cisco and NVIDIA that aim to simplify large AI cluster rollouts. At the same time, reliance on a handful of large customers, high non cash earnings and sharp share price swings mean the story is not risk free, which is why the cash flow and valuation work behind this screener matters.

Super Micro Computer’s AI server momentum and lower P/E are only half the story. There is a sharper split between opportunity and risk once you read the full analysis report for Super Micro Computer

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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.