7 Undervalued Stocks That Everyone Is Missing Out On Undervalued stocks are businesses that trade below their intrinsic value . Thomas Chua is the author of the 3-Bullet Sunday investment newsletter. A May tweet of his caught my attention. He wrote: “Buffett: We define intrinsic value as the discounted value of the cash that can be taken out of a business during its remaining life.” “Charlie Munger: I have never seen him do a DCF before.” Charlie Munger has said that determining a company’s intrinsic value is not easy. It requires a lot of experimentation with different valuation models. In the end, both Buffett and Munger consider it nothing more than an estimate. I use free cash flow yield — trailing 12-month ( TTM ) free cash flow ( FCF ) divided by market capitalization — to evaluate whether non-financial stocks are undervalued. I consider companies with yields of 8% or higher to be in value territory. So, for this article, I will provide you with seven undervalued stocks that are down 15% or more in 2022 and have TTM FCF yields of 8% or higher.