Top undervalued stocks to watch in Singapore in 2026
In this comprehensive guide, we explore what qualifies as an undervalued stock, analysts' top recommendations this year, and how you can trade/ invest in them with IG Singapore.
Important to know
This article is for informational purposes only and does not constitute investment or trading advice. Please ensure you understand the risks and consider your individual circumstances before trading.
Key takeaways
Undervalued stocks are companies trading below their fair or intrinsic value, often due to market overreaction, poor sentiment or short-term headwinds.
Singapore’s market includes quality dividend payers, REITs and blue-chip names that are often overlooked but financially sound.
You can trade undervalued stocks with CFDs on IG, using tools like technical analysis, price alerts, and watchlists.
What is an undervalued stock?
An undervalued stock is one that trades at a price below what analysts or investors believe it’s truly worth. This difference often stems from market sentiment, not fundamentals.
For example, a company might have strong earnings, cash reserves and growth potential, but still see its share price suppressed due to:
- Temporary sector weakness
- Global economic uncertainty
- Negative headlines or investor overreaction
These discrepancies can create opportunities for traders who expect the market to correct its view over time.
Common signs a stock might be undervalued
- Low price-to-earnings (P/E) or price-to-book (P/B) ratio vs industry peers
- High dividend yield relative to historical norms
- Stable fundamentals despite falling or flat price
- Insiders or institutions increasing their holdings
Why trade and invest in undervalued stocks in Singapore?
Singapore’s stock market (SGX) offers a unique blend of opportunities for value investors seeking long-term growth and active traders looking for short-term price movements.
From REITs and banks to transport, logistics, and industrial conglomerates, the SGX has historically been home to resilient businesses that sometimes trade below their intrinsic value.
Key reasons undervalued SGX stocks appeal to investors and traders
- Stable, cash-generating companies
Many SGX-listed firms boast strong balance sheets, reliable earnings, and consistent dividend payouts. For investors, this means steady income streams; for traders, it creates predictable price floors that reduce downside risk.
Under-the-radar opportunities
Unlike US or Hong Kong markets, Singapore stocks often receive less analyst coverage and media attention. This limited visibility allows mispricing to persist longer, creating potential entry points for traders to exploit short-term inefficiencies and for investors to accumulate undervalued positions before the market catches up.
Catalysts for revaluation
Shifts in interest rates, regional demand, or economic cycles can quickly re-rate undervalued SGX stocks. Traders can benefit from sharp price movements during these catalysts, while investors can gain from long-term appreciation as fundamentals realign with valuations.
Diversification with regional exposure
SGX-listed companies provide access to ASEAN growth markets and global trade flows, making them attractive for portfolio diversification. Investors secure exposure to stable dividends and regional expansion, while traders capitalise on volatility tied to macroeconomic events.
Did you know?
Between July 2024 and June 2025, SGX's Securities Daily Average Value (daily trading volume) grew by 27% year-on-year to S$1.3 billion a day.
How to identify undervalued SGX stocks
1. Use valuation metrics
Look for stocks trading at relatively low valuations compared to historical averages or sector peers:
- P/E ratio: Indicates how much you’re paying per dollar of earnings
- P/B ratio: Shows how the market values a company’s assets
- EV/EBITDA: Useful for comparing capital-intensive firms
Remember that a low valuation alone isn’t enough. You’ll want to cross-check with other indicators.
2. Analyse fundamentals
Use IG’s platform tools and research to assess:
- Revenue and profit trends
- Cash flow strength
- Debt levels
- Dividend consistency
- Competitive advantages
Stocks with strong fundamentals and stable outlooks, despite low market prices, may signal true undervaluation.
3. Monitor price action and sentiment
Pair valuation with technical analysis:
- Look for support zones, basing patterns or breakouts from long downtrends
- Use IG price alerts to watch for reversals or breakouts
- Track institutional flows or insider buying
Combining fundamentals with momentum signals can help confirm potential recovery trades.
Top 5 undervalued Singapore stocks to watch
Company
|
P/E ratio*
|
P/B ratio*
|
Dividend yield (Five-year average)
|
Oversea-Chinese Banking Corporation (OCBC)
|
11.7
|
1.42
|
5.6%
|
|
8.9
|
1.27
|
5.3%#
|
|
12.5
|
0.71
|
5.6%
|
Jardine Cycle & Carriage (Jardine C&C)
|
12.5
|
1.30
|
3.7%
|
Mapletree Pan Asia Commercial Trust
|
10.9
|
0.79
|
6.3%#
|
* As of 9 December 2025
# Since 2022
1. OCBC (SGX: O39)
Industry: Banking
Market cap: ~S$85 billion (December 2025)
Overview: OCBC, Singapore’s second largest bank, operates in 18 countries, serving retail, SME, and corporate clients. It has a strong emphasis on digital banking and sustainability.
Financial highlights: OCBC reported third-quarter 2025 net profit of S$1.98 billion, up 9% quarter-on-quarter (QoQ) but flat year-on-year (YoY). Nine‑month 2025 net profit was S$5.68 billion, down 4% YoY as net interest margins softened. Interim dividend stood at S$0.41 per share. The bank’s NPL ratio remained healthy at 0.9%.
Valuation: Shares trade at a price-to-earning (P/E) of ~11.7 and price-to-book (P/B) of ~1.42, with a five‑year average dividend yield of 5.6%.
Trading data (Nov 2025):
- Three-month average price: S$13.25
- Three-month average daily volume: ~4.2 million shares
- Volatility: ±1.1% daily
- Liquidity: High
Stock outlook: OCBC shares have a consensus rating of ‘outperform’ with target S$19.01 (SGX StockFacts). DBS analysts raised their rating on the stock to a ‘buy’ call, citing its more attractive dividend yield and price-to-book value (P/BV) valuation.
2. SIA (SGX: C6L)
Industry: Aviation
Market cap: ~S$20 billion (December 2025)
Overview: SIA is Singapore’s national carrier, serving over 130 cities worldwide. Despite near‑term volatility, it maintains strong liquidity and premium brand positioning.
Financial highlights: SIA Group's net profit fell by 68% YoY to S$239 billion in the first half of FY2025/2026. This was largely due to the group’s share of losses from Air India as well as lower interest income earned during the period.
Valuation: SIA is priced at 8.9 times of earnings and 1.27 times of book value. Since 2022, its average dividend yield has been 5.3%.
Trading data (November 2025):
- Three‑month average price: S$6.15
- Three‑month average daily volume: ~3.8 million shares
- Volatility: Moderate (±1.6% daily average)
- Liquidity: High
Stock outlook: Analysts have a consensus rating of ‘underperform’ alongside a share price target of S$6.00 as of early December 2025. Citi analysts rated SIA a ‘sell’ in November 2025 with a lower stock price target of S$6.35.
3. Wilmar International (SGX: F34)
Industry: Agribusiness and food processing
Market cap: ~S$19.5 billion (December 2025)
Overview: Wilmar is one of Asia’s leading agribusiness groups, with integrated operations across Indonesia, India, and China.
Financial highlights: Core net profit rose by 71.6% YoY to US$357.2 million in 3Q 2025 (compared to 3Q 2024’s US$208.1 million). The group remains ‘cautiously optimistic’ that its performance for the rest of FY2025 will be satisfactory.
Valuation: Wilmar’s shares trade at 12.5 times of earnings and 0.71 times of book value. The group has maintained a five‑year average dividend yield of 5.6%.
Trading data (November 2025):
- Three‑month average price: S$3.85
- Three‑month average daily volume: ~2.9 million shares
- Volatility: Moderate (±1.4% daily average)
- Liquidity: High
Stock outlook: SGX StockFacts consensus rating of ‘outperform’ with share price target S$3.20. In early November, RHB analysts raised their rating on Wilmar shares to ‘neutral’ alongside a higher price target of S$3.00.
4. Jardine C&C (SGX: C07)
Industry: Investment holdings/ automobile
Market cap: ~S$13.6 billion (December 2025)
Overview: Jardine C&C is a Southeast Asia‑focused conglomerate with automotive, financial services, and consumer retail businesses across Indonesia, Vietnam, Myanmar, and Malaysia.
Financial highlights: First-half net profit for 2025 fell by 23% YoY to US$371 million. Interim dividend was unchanged YoY at US$0.28 per share. Overall net cash fell by 1% from the previous six months at the end of June 2025.
Valuation: Jardine C&C trades at 12.5 times of earnings and 1.3 times of book value, near asset value. Its five‑year average dividend yield is 4.7%.
Trading data (November 2025):
- Three‑month average price: S$28.40
- Three‑month average daily volume: ~1.2 million shares
- Volatility: Moderate (±1.3% daily average)
- Liquidity: Medium to high
Stock outlook: Average rating of ‘hold’ with share price target of S$28.40, based on Investing.com data. CLSA analysts upgraded their call on Jardine C&C shares to ‘hold’ in late November 2025.
5. Mapletree Pan Asia Commercial Trust (SGX: N2IU)
Industry: Real estate
Market cap: ~S$7.5 billion (December 2025)
Overview: Formed from the merger of two Mapletree REITs in 2022, the trust manages a diversified portfolio of retail malls and office properties across Asia’s gateway cities.
Financial highlights: While second-quarter FY2025/2026 net property income fell by 2.2% YoY, the amount available for distribution to unitholers rose by 2.1% YoY, alongside a higher distribution per unit of 2.01 Singapore cents (up from 1.98 Singapore cents a year ago).
Valuation: Mapletree Pan Asia Commercial Trust shares are valued at 10.9 times of earnings and 0.79 times of book value. Since its 2022 merger, it has delivered an average yield of 6.2%.
Trading data (November 2025):
- Three‑month average price: S$1.62
- Three‑month average daily volume: ~5.5 million units
- Volatility: Low (±0.9% daily average)
- Liquidity: High
Stock outlook: Consensus rating of ‘outperform’ with share price target of S$1.54, based on data published by Beansprout.
How to trade and invest in undervalued stocks with IG Singapore
CFD share trading
- Create a live or demo account
- Find an opportunity among one of our 10,000+ stocks with our stock screener
- Click ‘buy’ to go long or ‘sell’ to short
- Set your position size
- Take steps to manage your risk
- Open and monitor your position
Investing
- Open an account via IG Markets Singapore app
- Search for undervalued SG stocks on the app
- Choose the shares you want to buy
- Determine how many shares you want to purchase
- Place your order
- Monitor your investment and collect any dividends
FAQs about undervalued stocks
Can I invest in undervalued Singapore stocks for the long term?
Yes., you can do so with the IG Markets Singapore app. Many Singapore-listed companies across banking, property, and industrials offer stable earnings, strong balance sheets, and regional growth potential. When valuations are low, they can be attractive long-term plays.
Are they suitable for beginners?
Yes. Large-cap stocks and REITs provide transparency, steady dividends, and lower volatility. Beginners can use dollar-cost averaging and diversification to manage risk.
What are the most undervalued sectors on the Singapore Exchange?
Sectors like real estate, financials, industrials and transport often contain undervalued stocks - especially during periods of rising rates, regional slowdown, or sector-specific pessimism.
Are undervalued stocks the same as cheap stocks?
Not necessarily. A stock might look cheap based on its price or valuation multiples but could be fairly priced if it faces serious structural issues. Undervalued stocks have strong fundamentals that the market may be overlooking.
What are the risks of trading undervalued stocks?
A stock can remain undervalued, or fall further, for longer than expected. Risks include deteriorating fundamentals, misjudging sentiment shifts, or macro events derailing a recovery.
How do I find undervalued stocks on IG?
Use IG’s trading platform to scan for low P/E or P/B stocks, track sector performance, apply technical filters, and monitor news flow. You can also create watchlists or set alerts on stocks you think are mispriced.
Can I short overvalued stocks on IG too?
Yes, with CFDs, you can go short on stocks you believe are overvalued or due for a correction. This can be used to hedge or speculate on market sentiment reversals.
Are dividends taxable?
No. Dividends from SGX-listed companies and REITs are tax-exempt for individuals under Singapore’s one-tier corporate tax system.
Important to know
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Ready to trade or invest in undervalued stocks?
Connect with us
Disclaimers:
- All forms of investments carry risks, including the potential loss of all or part of your principal amount invested. The value of an investment product may rise or fall, and may also become valueless. Past performance is not indicative of future results. Please ensure that you fully understand, and are aware of, the risks and costs involved.
- Trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits. Refer to the Risk Disclosure Statement and Risk Fact sheet.
- IG Asia Pte Ltd (Co. Reg. No. 200510021K)("IG") is regulated by the Monetary Authority of Singapore and holds a capital markets services licence.
- IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
- The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
- This advertisement has not been reviewed by the Monetary Authority of Singapore.
