<div id="readability-page-1"><div><p>As the United States stock market grapples with concerns over an AI bubble and fluctuating major indexes, investors are keenly observing economic indicators like the upcoming jobs report to gauge future market directions. In this environment of uncertainty, identifying stocks that are potentially undervalued can offer opportunities for those looking to capitalize on price discrepancies; such stocks may be trading at significant discounts relative to their intrinsic value, providing a compelling case for consideration amidst broader market pressures.</p><h3>Top 10 Undervalued Stocks Based On Cash Flows In The United States</h3><table><tbody><tr><td><strong>Name</strong></td><td><strong>Current Price</strong></td><td><strong>Fair Value (Est)</strong></td><td><strong>Discount (Est)</strong></td></tr><tr><td>UMB Financial (UMBF)</td><td>$119.03</td><td>$233.99</td><td>49.1%</td></tr><tr><td>Schrödinger (SDGR)</td><td>$17.94</td><td>$35.43</td><td>49.4%</td></tr><tr><td>Perfect (PERF)</td><td>$1.73</td><td>$3.43</td><td>49.6%</td></tr><tr><td>Krystal Biotech (KRYS)</td><td>$238.55</td><td>$469.98</td><td>49.2%</td></tr><tr><td>Freshworks (FRSH)</td><td>$12.47</td><td>$23.77</td><td>47.5%</td></tr><tr><td>FirstSun Capital Bancorp (FSUN)</td><td>$38.54</td><td>$73.32</td><td>47.4%</td></tr><tr><td>DexCom (DXCM)</td><td>$66.37</td><td>$127.52</td><td>48%</td></tr><tr><td>Columbia Banking System (COLB)</td><td>$28.91</td><td>$57.43</td><td>49.7%</td></tr><tr><td>American Superconductor (AMSC)</td><td>$31.21</td><td>$59.18</td><td>47.3%</td></tr><tr><td>AbbVie (ABBV)</td><td>$223.67</td><td>$419.64</td><td>46.7%</td></tr></tbody></table><p>Click here to see the full list of 204 stocks from our Undervalued US Stocks Based On Cash Flows screener.</p><p>Below we spotlight a couple of our favorites from our exclusive screener.</p><h2>Hesai Group (HSAI)</h2><p><strong>Overview:</strong> Hesai Group develops, manufactures, and sells three-dimensional LiDAR solutions across Mainland China, Europe, North America, and internationally with a market cap of approximately $3.26 billion.</p><p><strong>Operations:</strong> The company's revenue primarily comes from its LiDAR products, generating CN¥2.75 billion.</p><p><strong>Estimated Discount To Fair Value:</strong> 27.4%</p><p>Hesai Group is trading 27.4% below its estimated fair value of US$29.79, highlighting its potential undervaluation based on cash flows. The company recently became profitable, reporting net income of CNY 256.17 million for Q3 2025 compared to a loss last year and raised full-year earnings guidance significantly. With revenue growth forecasted at 27% annually and strong partnerships like the exclusive lidar supply deal with Li Auto, Hesai's financial outlook appears robust despite past shareholder dilution concerns.</p><ul><li>Insights from our recent growth report point to a promising forecast for Hesai Group's business outlook.</li><li>Navigate through the intricacies of Hesai Group with our comprehensive financial health report here.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9f08bf80-9142-4365-b591-5d856b729e8b/chart/dcf/query-dGhlbWU9bGlnaHQ?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9f08bf80-9142-4365-b591-5d856b729e8b/chart/dcf/query-dGhlbWU9bGlnaHQ"/><figcaption>HSAI Discounted Cash Flow as at Dec 2025</figcaption></figure><h2>Nutanix (NTNX)</h2><p><strong>Overview:</strong> Nutanix, Inc. offers an enterprise cloud platform across various regions including North America, Europe, the Asia Pacific, the Middle East, Latin America, and Africa with a market cap of $12.91 billion.</p><p><strong>Operations:</strong> The company's revenue segment is derived entirely from Internet Software &amp; Services, totaling $2.62 billion.</p><p><strong>Estimated Discount To Fair Value:</strong> 35.3%</p><p>Nutanix is trading 35.3% below its estimated fair value of US$74.65, suggesting undervaluation based on cash flows. The company recently reported a significant increase in net income to US$62.1 million for Q1 2026 and forecasts robust earnings growth of 32.5% annually, outpacing the broader market's expectations. However, despite these positive indicators and strategic initiatives like Azure Virtual Desktop integration, Nutanix faces challenges with high debt levels and negative shareholder equity.</p><ul><li>Our expertly prepared growth report on Nutanix implies its future financial outlook may be stronger than recent results.</li><li>Delve into the full analysis health report here for a deeper understanding of Nutanix.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9f2cad14-c1a3-47f1-b1d5-594f209996ec/chart/dcf/query-dGhlbWU9bGlnaHQ?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/9f2cad14-c1a3-47f1-b1d5-594f209996ec/chart/dcf/query-dGhlbWU9bGlnaHQ"/><figcaption>NTNX Discounted Cash Flow as at Dec 2025</figcaption></figure><h2>Warner Music Group (WMG)</h2><p><strong>Overview:</strong> Warner Music Group Corp. is a music entertainment company operating in the United States, the United Kingdom, Germany, and internationally with a market cap of $14.55 billion.</p><p><strong>Operations:</strong> The company generates revenue from two main segments: Recorded Music, which accounts for $5.41 billion, and Music Publishing, contributing $1.31 billion.</p><p><strong>Estimated Discount To Fair Value:</strong> 23.8%</p><p>Warner Music Group is trading at US$28.15, significantly below its estimated fair value of US$36.96, highlighting potential undervaluation based on cash flows. Despite challenges with debt coverage by operating cash flow and a dividend not well covered by earnings, WMG's earnings are forecast to grow substantially over the next three years. Recent strategic partnerships in AI music creation could unlock new revenue streams and enhance artist engagement, potentially supporting future financial performance improvements.</p><ul><li>Our growth report here indicates Warner Music Group may be poised for an improving outlook.</li><li>Click to explore a detailed breakdown of our findings in Warner Music Group's balance sheet health report.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/29611dd2-f731-49e7-9996-cae6850b0ece/chart/dcf/query-dGhlbWU9bGlnaHQ?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/29611dd2-f731-49e7-9996-cae6850b0ece/chart/dcf/query-dGhlbWU9bGlnaHQ"/><figcaption>WMG Discounted Cash Flow as at Dec 2025</figcaption></figure><h2>Turning Ideas Into Actions</h2><ul><li>Click through to start exploring the rest of the 201  Undervalued US Stocks Based On Cash Flows now.</li><li>Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.</li><li>Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.</li></ul><h2>Contemplating Other Strategies?</h2><ul><li>Explore high-performing small cap companies that haven't yet garnered significant analyst attention.</li><li>Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.</li><li>Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.</li></ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

HSAI

<p>The article highlights three stocks—Hesai Group, Nutanix, and Warner Music Group—trading at significant discounts of 27.4%, 35.3%, and 23.8% respectively, based on cash flow estimates. It discusses their financial outlooks, potential undervaluation, and strategic initiatives, offering investment insights amidst market uncertainties. The report is general in nature and not financial advice.</p>

3 Stocks Estimated To Be Trading At Discounts Of 23.8% To 35.3%