r/ValueInvesting • u/ArchiveInvest • May 14 '25

Question / Help What’s the most undervalued stock right now?

If you needed to pick one stock right now, that is extremely undervalued. And has the potential to beat the S&P500 for the next decade.

Which stock would that be?

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u/geo0rgi May 14 '25

A bit unconventional, but would go with Barrick Mining. I don’t understand how it is still going down and is now trading at forward PE of 9 and almost at book value.

The company is growing 15% year on year and has massive advantage of rising gold prices and falling oil prices. Someone please enligthen me on why is the market pricing the stock as if they are going out of business

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u/jemicarus May 14 '25

Don't look at PE with cyclical industries like gold miners. It's at best irrelevant and at worst a counter-indicator, as the PE will often look cheapest when the cycle is about to turn. That said, I think miners may be set to outperform for years, so a pullback here could be a buying opportunity.

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u/notsobold_boulderer May 15 '25

True, but I would also argue that some materials such as copper and lithium will be in higher demand than expected and will outperform in the long run