3 TSX Stocks Estimated To Be 37.7% To 49.5% Below Intrinsic Value

As the Canadian market navigates through a period of uncertainty, investors are observing mixed signals with some sectors showing resilience while others face challenges. In this environment, identifying stocks that are trading below their intrinsic value can be a strategic approach for those looking to capitalize on potential market corrections and long-term growth opportunities.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name Current Price Fair Value (Est) Discount (Est) Vitalhub (TSX:VHI) CA$8.04 CA$15.54 48.3% Vermilion Energy (TSX:VET) CA$15.96 CA$28.46 43.9% Ero Copper (TSX:ERO) CA$38.82 CA$66.08 41.3% EQB (TSX:EQB) CA$121.74 CA$214.81 43.3% Energy Fuels (TSX:EFR) CA$29.35 CA$49.48 40.7% Constellation Software (TSX:CSU) CA$2663.43 CA$5279.07 49.5% Canfor (TSX:CFP) CA$13.06 CA$23.04 43.3% Americas Gold and Silver (TSX:USA) CA$8.90 CA$15.17 41.3% Altus Group (TSX:AIF) CA$50.73 CA$91.97 44.8% ADF Group (TSX:DRX) CA$9.35 CA$16.58 43.6%

Click here to see the full list of 32 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Constellation Software

Overview: Constellation Software Inc. acquires, builds, and manages vertical market software businesses to develop mission-critical software solutions for both public and private sectors, with a market cap of CA$55.66 billion.

Operations: The company's revenue comes primarily from its Software & Programming segment, totaling $11.62 billion.

Estimated Discount To Fair Value: 49.5%

Constellation Software's stock is trading significantly below its estimated future cash flow value, presenting potential undervaluation. Despite a high debt level and recent profit margin decline, the company shows strong earnings growth prospects at 22% annually, outpacing the Canadian market. Revenue growth is expected to exceed market averages but remains moderate compared to high-growth benchmarks. Recent executive changes may influence strategic direction, particularly in enhancing its Permanent Engaged Minority Shareholder strategy.

Upon reviewing our latest growth report, Constellation Software's projected financial performance appears quite optimistic. Click here and access our complete balance sheet health report to understand the dynamics of Constellation Software.TSX:CSU Discounted Cash Flow as at Apr 2026

Equinox Gold

Overview: Equinox Gold Corp. focuses on the acquisition, exploration, development, and operation of mineral properties in the Americas with a market cap of CA$16.86 billion.

Operations: The company's revenue is derived from several mineral properties in the Americas, with key contributions from Nicaragua ($491.59 million), Greenstone ($777.59 million), Mesquite ($286.89 million), Los Filos ($109.45 million), Valentine ($80.53 million), Pan ($41.50 million), and Castle Mountain ($29.64 million).

Story Continues

Estimated Discount To Fair Value: 37.7%

Equinox Gold's stock trades at a significant discount to its estimated future cash flow value of CA$33.8, suggesting potential undervaluation. Forecasted revenue growth of 14.6% annually surpasses the Canadian market average, and profitability is expected within three years. Despite recent shareholder dilution, the company has initiated a share buyback program and dividend policy, reflecting financial strength and commitment to shareholder returns amidst ongoing exploration successes at its Valentine project in Newfoundland.

In light of our recent growth report, it seems possible that Equinox Gold's financial performance will exceed current levels. Click to explore a detailed breakdown of our findings in Equinox Gold's balance sheet health report.TSX:EQX Discounted Cash Flow as at Apr 2026

Ero Copper

Overview: Ero Copper Corp. is involved in the exploration, development, and production of mining projects in Brazil, with a market cap of CA$4.13 billion.

Operations: The company's revenue segments include $261.45 million from Tucuma, $358.29 million from Caraíba, and $166.11 million from Xavantina, all located in Brazil.

Estimated Discount To Fair Value: 41.3%

Ero Copper's stock trades 41.3% below its estimated fair value of CA$66.08, highlighting potential undervaluation based on cash flows. The company recently became profitable, with annual earnings forecast to grow faster than the Canadian market at 11.9%. Despite significant insider selling and high debt levels, Ero's robust production profile and strategic partnership with Vale Base Metals for the Furnas project underscore its growth potential in copper and gold production over a long mine life.

The growth report we've compiled suggests that Ero Copper's future prospects could be on the up. Take a closer look at Ero Copper's balance sheet health here in our report.TSX:ERO Discounted Cash Flow as at Apr 2026

Next Steps

Discover the full array of 32 Undervalued TSX Stocks Based On Cash Flows right here. 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. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

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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 TSX:CSU TSX:EQX and TSX:ERO.

This article was originally published by Simply Wall St.

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