The Canadian market has been experiencing some stabilization with a declining unemployment rate and easing inflation, though uncertainties around trade agreements like CUSMA remain a concern. In this context, identifying stocks trading below their intrinsic value can offer potential opportunities for investors looking to capitalize on undervaluation amidst these evolving economic conditions.

Top 10 Undervalued Stocks Based On Cash Flows In Canada

Name Current Price Fair Value (Est) Discount (Est) Tantalus Systems Holding (TSX:GRID) CA$5.34 CA$10.43 48.8% Pan American Silver (TSX:PAAS) CA$79.00 CA$132.27 40.3% Orla Mining (TSX:OLA) CA$23.74 CA$45.11 47.4% Metalla Royalty & Streaming (TSXV:MTA) CA$10.19 CA$17.76 42.6% Exchange Income (TSX:EIF) CA$98.31 CA$172.35 43% Decisive Dividend (TSXV:DE) CA$7.48 CA$13.97 46.5% CareRx (TSX:CRRX) CA$3.86 CA$7.65 49.5% Avino Silver & Gold Mines (TSX:ASM) CA$13.32 CA$23.31 42.9% Americas Gold and Silver (TSX:USA) CA$10.17 CA$18.90 46.2% Ag Growth International (TSX:AFN) CA$27.48 CA$51.55 46.7%

Click here to see the full list of 26 stocks from our Undervalued TSX Stocks Based On Cash Flows screener.

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

Ag Growth International

Overview: Ag Growth International Inc. manufactures and distributes equipment for bulk agriculture commodities globally, with a market cap of CA$516.88 million.

Operations: The company's revenue is derived from two main segments: Farm, contributing CA$489.45 million, and Commercial, generating CA$916.45 million.

Estimated Discount To Fair Value: 46.7%

Ag Growth International is trading at CA$27.48, significantly below its estimated future cash flow value of CA$51.55, indicating it may be undervalued based on discounted cash flow analysis. The company is expected to become profitable within three years, with earnings forecasted to grow 58.24% annually, despite a slower revenue growth rate compared to the market. Recent board changes include appointing Brad Wall and George Armoyan, potentially enhancing strategic direction amidst leadership transitions.

The analysis detailed in our Ag Growth International growth report hints at robust future financial performance. Click to explore a detailed breakdown of our findings in Ag Growth International's balance sheet health report.TSX:AFN Discounted Cash Flow as at Feb 2026

Orla Mining

Overview: Orla Mining Ltd. engages in the acquisition, exploration, development, and exploitation of mineral properties with a market cap of CA$8.07 billion.

Operations: Orla Mining Ltd. generates its revenue through the acquisition, exploration, development, and exploitation of mineral properties.

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Estimated Discount To Fair Value: 47.4%

Orla Mining is trading at CA$23.74, well below its estimated future cash flow value of CA$45.11, suggesting undervaluation based on discounted cash flow analysis. The company's earnings are expected to grow significantly at 77% annually, outpacing the Canadian market's average growth rate. Recent developments include robust production guidance for 2026 and strategic advancements in the South Railroad Gold Project, enhancing potential resource growth and project execution capabilities.

Insights from our recent growth report point to a promising forecast for Orla Mining's business outlook. Click here to discover the nuances of Orla Mining with our detailed financial health report.TSX:OLA Discounted Cash Flow as at Feb 2026

Savaria

Overview: Savaria Corporation offers accessibility solutions for the elderly and physically challenged across Canada, the United States, Europe, and internationally, with a market cap of CA$1.81 billion.

Operations: The company's revenue is derived from two main segments: Patient Care, which accounts for CA$197.90 million, and Accessibility (including Adapted Vehicles), contributing CA$697.19 million.

Estimated Discount To Fair Value: 24.3%

Savaria Corporation, trading at CA$25.19, is undervalued compared to its estimated future cash flow value of CA$33.26. The company’s earnings are forecast to grow significantly at 29.5% annually, surpassing the Canadian market's average growth rate of 12.6%. Despite large one-off items impacting financial results, Savaria maintains a reliable dividend policy with consistent monthly payouts, recently affirming dividends of CA$0.0467 per share for early 2026 distributions.

Our expertly prepared growth report on Savaria implies its future financial outlook may be stronger than recent results. Unlock comprehensive insights into our analysis of Savaria stock in this financial health report.TSX:SIS Discounted Cash Flow as at Feb 2026

Summing It All Up

Embark on your investment journey to our 26 Undervalued TSX Stocks Based On Cash Flows selection here. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Curious About Other Options?

Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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:AFN TSX:OLA and TSX:SIS.

This article was originally published by Simply Wall St.

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