Analysis: Asian Equities Trading at Steep Discounts, With Some Stocks Undervalued by Over 25%
Deep Value Emerges in Asian Markets as Stocks Trade at Substantial Discounts
LONDON/HONG KONG – In a period marked by investor caution over interest rates and geopolitical friction, Asian equity markets are presenting what some analysts call a "value hunter's paradise." A recent fundamental analysis, applying discounted cash flow models, suggests a broad cohort of stocks in the region are trading significantly below their estimated fair value, with an average discount for a screened list of 252 companies reaching into double digits. The most pronounced opportunity identified shows a potential undervaluation of 26.4%.
"When fear dominates the narrative, fundamentals often get overlooked," said Michael Chen, a portfolio manager at Atlas Capital in Singapore. "The disconnect between price and intrinsic value in several Asian markets has widened to levels we haven't seen since the 2020 volatility. This isn't about speculative bets; it's about cash-generating businesses trading at a bargain."
Spotlight on Potential Opportunities
CLASSYS Inc. (KOSDAQ:A214150): The South Korean medical aesthetics device maker, with a market capitalisation of ₩4.94 trillion, is trading approximately 14.3% below its calculated fair value. Despite a modest dip in revenue for the first three quarters of 2025, the company has demonstrated remarkable profit conversion, with net income surging to KRW 89.30 billion. Analysts project annual earnings growth north of 30%, slightly trailing the high-flying Korean market average but underscoring a robust underlying business.
Moshi Moshi Retail Corporation (SET:MOSHI): This Thai lifestyle product retailer, commanding a THB 11.71 billion market cap, appears discounted by nearly 20%. Its third-quarter results bolstered the thesis, showing strong year-on-year sales and profit growth. While its revenue growth forecast of 16.9% per annum may seem conservative, it more than doubles the expected growth rate for the Thai market, suggesting efficient scaling and market share gains.
BuySell Technologies Co., Ltd. (TSE:7685): Standing out with the largest estimated discount at 26.4%, the Japanese kimono and luxury goods resale platform has a market value of ¥152.24 billion. The company recently upgraded its fiscal 2025 guidance, driven by strength in both its home-visit and retail operations. With earnings projected to grow at a stellar 24.9% annually—far outpacing Japan's market average—the recent share price volatility may be creating a entry point for long-term investors.
Market Voices: A Mix of Conviction and Caution
"This is the kind of data-driven signal we wait for," said Priya Sharma, a veteran equity analyst at Horizon Investments. "The combination of strong bottom-line growth and a significant margin of safety in these names, particularly BuySell Tech, is compelling. It speaks to underlying operational excellence that the market is temporarily discounting."
"Let's not get carried away with spreadsheet models," countered David R. Miller, an independent market strategist known for his sceptical views. "A 'discount to fair value' is just an estimate, often a flawed one. It ignores real risks like currency swings, regulatory changes in Asia, and the fact that these markets can stay irrational longer than your patience. This isn't a buying guide; it's a hypothesis."
"I find the Moshi Moshi case fascinating," added Akiko Tanaka, a retail sector fund manager in Tokyo. "It's a pure play on Thailand's domestic consumption revival and trading at a compelling multiple. The growth is there, it's profitable, and it's under the radar for most international funds."
Disclaimer: This analysis is based on historical data and analyst forecasts using a standardised methodology. It is for informational purposes only and does not constitute individual financial advice or a recommendation to buy or sell any security. Investors should consider their own objectives and circumstances. The analysis may not incorporate the latest company-specific announcements.
Have feedback on this article? Contact our editorial team at [email protected].