The Australian Securities Exchange (ASX) has seen remarkable growth recently, with both local and global markets delivering impressive returns. Despite this bullish trend, there remain opportunities for investors seeking undervalued shares. Some ASX stocks are currently trading at significant discounts, presenting potential bargains for savvy investors.
Being “cheap” in the stock market can mean various things. It might refer to a share price that is low compared to the company’s net tangible assets (NTA) or net asset value (NAV). Alternatively, it could indicate a business trading at a low earnings multiple. Here, we explore three ASX shares that appear undervalued given their prospects.
Bailador Technology Investments Ltd (ASX: BTI)
Bailador Technology Investments Ltd stands out as a potentially undervalued gem on the ASX. The company specializes in investing in private, high-growth technology businesses with strong unit economics and large addressable markets. These businesses are capable of generating repeat revenue and have the potential for international expansion.
Despite a solid track record, Bailador’s shares are trading at a 38% discount to the pre-tax NTA and a 30% discount to the post-tax NTA. Historically, Bailador has sold its investments at a premium to their valuation, suggesting that the current discount may not reflect the true value of its holdings.
FY25 revenue for Bailador’s portfolio companies increased by 47%, indicating robust growth and potential value appreciation.
Given these factors, the current discount on Bailador shares seems unwarranted, offering a compelling opportunity for investors.
Rural Funds Group (ASX: RFF)
Rural Funds Group is an attractive real estate investment trust (REIT) with a diversified portfolio of farmland assets, including cattle, almond, and macadamia farms, as well as vineyards and water entitlements. The REIT benefits from regular, contracted rental increases and boasts a distribution yield of approximately 6%.
Despite several interest rate cuts by the Reserve Bank of Australia (RBA) this year, Rural Funds continues to trade at a substantial discount to its NAV. As of June 30, 2025, the adjusted NAV was $3.08 per unit, yet the shares are trading at a 37% discount.
Recent inflation data in Australia could further boost rental growth for Rural Funds, as a significant portion of its rental increases are linked to inflation.
This inflation-linked growth potential, combined with the current discount, makes Rural Funds an appealing choice for investors seeking value in the REIT sector.
GQG Partners Inc (ASX: GQG)
GQG Partners Inc, a global fund manager, offers a range of investment options, including US, global, and emerging market shares. The company has recently faced challenges, with its investment team taking a defensive stance amid the AI stock surge. This cautious approach has led to underperformance relative to benchmarks, resulting in net outflows of funds under management (FUM).
Despite these challenges, GQG’s FUM increased from US$161.6 billion in September 2024 to US$167.2 billion in September 2025, marking a 3.5% year-over-year rise. However, the share price has plummeted by over 40% in the past year.
The latest quarterly dividend indicates an annualized yield of 14.75%, with shares valued at just 6x their annualized distributable earnings.
While further FUM outflows would be concerning, the current share price decline appears excessive, offering investors substantial cash payouts and a low forward price/earnings (P/E) ratio.
Conclusion
These three ASX shares—Bailador Technology Investments, Rural Funds Group, and GQG Partners—present intriguing opportunities for investors seeking value in a market that has otherwise seen significant gains. Each company offers unique strengths and potential for growth, despite trading at discounts that suggest the market may be undervaluing their prospects. As always, investors should conduct thorough research and consider their risk tolerance before making investment decisions.
