Top undervalued stocks to watch in Singapore in 2025

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 undervalued stocks in Singapore?

Singapore’s stock market is home to many value-oriented businesses - from REITs and banks to transport, logistics and industrial conglomerates.

The SGX is attractive for value traders
 

• Stable cash-generating companies: Many SGX-listed firms are known for strong balance sheets and consistent dividend payouts.
• Under-the-radar opportunities: Compared to US or HK markets, some SGX stocks receive less media and analyst coverage, which allows mispricing to persist longer.
• Catalysts for revaluation: Shifts in interest rates, regional demand or economic cycles can quickly bring undervalued stocks back into favour.

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
 

1. OCBC (SGX: O39)

Industry: Banking

Market cap: S$76 billion (August 2025)

Financial highlights:

• OCBC reported net profit of S$3.7 billion in its 2024 financial year (FY2024), up 8% from FY2023. This was driven by growth across its banking, wealth management, and insurance businesses. 
  
  
• OCBC declared dividends of S$0.41 per share for the first half of 2025 (1H 2025), as compared to S$0.44 per share in 1H 2024.
  
  
• However, net profit is down 6% year-on-year (YoY) in the same period, amid a softening interest rate environment.
  
  
• OCBC’s non-performing loan (NPL) ratio stood at 0.9% as of 1H 2025, which is typically considered to be healthy.

If you’re looking to invest in a large company trading at a share price that isn’t too much above its net asset value, OCBC could be a potential play. 

As of August 2025, OCBC shares traded at a P/E ratio of approximately 10.3 (up from around 9.2 a year ago) and a P/B ratio of around 1.25, reflecting an attractive valuation compared to peers like DBS (2.11). It has a five-year average dividend yield of 4.3%.  
 
OCBC is Singapore’s second-largest bank by total assets, which amounted to S$645 billion as of June 2025. It operates in over 18 countries, serving retail, small-medium enterprise (SME), and corporate clients. OCBC has a strategic focus on digital banking and sustainability.

2. SIA (SGX: C6L)

Industry: Aviation 

Market cap: S$20.4 billion (August 2025)

Financial highlights:

• SIA reported net profit of S$2.78 billion for FY2024/25, up 3.9% from S$2.68 billion in the previous year. This was driven by revenue of S$19.5 billion, up 2.8% from FY2024, despite challenging market conditions.
  
  
• SIA distributed S$0.30 per share with an ex-dividend date of 8 August 2025, as compared to S$0.38 in August 2024. 
  
  
• However, net profit fell by nearly 60% in the first quarter of FY2025/2026, largely due lower interest income (-$61 million), and the group recording a share of losses of associated companies (-$122 million), including Air India’s latest financial results. 
  
  
• SIA shares currently trade at a P/E ratio of approximately 6.7 (down from higher pandemic-recovery multiples) and a P/B ratio of around 1.23. Its post-pandemic dividend yield (since 2023) stands at an average of 5.86% per annum.  

SIA is the national carrier of Singapore and one of Asia's largest airlines by market capitalisation. It operates a network covering over 130 cities across six continents, serving premium, business, and budget-conscious travellers. 

3. Wilmar International (SGX: F34)

Industry: Agribusiness and food processing 
 
Market cap: S$18.8 billion (August 2025) 
 
Financial highlights:

• Wilmar saw net profit increase 2.6% YoY in 1H2025, on the back of stronger performances in the Plantation & Sugar Milling and Food Products segments.
  
  
• Wilmar distributed S$0.14 per share in dividends in 2025, representing a dividend yield of 4.76% for the calendar year.
  
  
• Despite margin pressures from volatile commodity prices and currency fluctuations across emerging markets (particularly Indonesia and China), the company is ‘cautiously optimistic’ that its core business segments’ performance will remain ‘satisfactory’.

Wilmar shares had a P/E ratio of 12.25 and P/B ratio of 0.70 as of August 2025. Five-year dividend yield average stands at roughly 5.8%. The Wilmar share price is down by 4.5% year to date. 
 
Wilmar International is one of Asia's leading agribusiness groups and Singapore's largest listed company by revenue. Its integrated supply chain spans palm oil plantations, oilseed crushing, specialty fats, consumer products, and sugar refining across emerging Asian markets like Indonesia, India, and China. 

4. Jardine C&C (SGX: C07)

Industry: Investment holdings/ automobile

Market cap: S$10.5 billion (August 2025)

Financial highlights:

• Jardine C&C reported earnings of US$946 million (S$1.21 billion) for FY2024, down 22% year-on-year, impacted by weaker domestic currencies in Indonesia and Vietnam affecting profit contribution in US dollar terms.
  
  
• Jardine C&C declared dividends amounting to US$1.12 (S$1.43) per share in 1H 2025, compared to US$1.18 (S$1.51) per share in the previous year.
  
  
• The company saw underlying profit increase 6% YoY in 1H 2025, benefitting from foreign exchange gains and lower financing costs at the corporate level.
  
  
• Net profit declined 23% YoY during the same period, reflecting ongoing headwinds from currency fluctuations and regional economic pressures. 

Jardine C&C was trading at a P/E ratio of approximately 9.6 and a P/B ratio of around 0.96 in August 2025. Its five-year average dividend yield stands at around 4.7% per annum. The Jardine C&C share price is down by 7.5% so far this year. 
 
Jardine C&C is a Singapore-listed and Southeast Asia-based investment holdings company with significant automotive and consumer businesses. The conglomerate operates across Indonesia, Vietnam, Myanmar, and Malaysia through automotive dealerships, financial services, and its consumer retail business.

5. Mapletree Pan Asia Commercial Trust (SGX: N2IU) 

Industry: Real estate

Market cap: S$6.8 billion (August 2025) 

Financial highlights:

• Mapletree Pan Asia Commercial Trust posted relatively stable results in its latest quarter, with profit after tax coming in 1.1% lower YoY in 1Q FY2025/2026.
  
  
• The REIT distributed S$0.021 per unit to shareholders for 1Q FY25/26, or 3.8% lower as compared to 1Q FY24/25.
  
  
• Despite challenging market conditions, the trust continues to maintain a diversified portfolio of premium retail and office properties in key gateway cities across Asia, positioning it for long-term recovery as regional economies stabilise. 

Mapletree Pan Asia Commercial Trust shares were trading at a P/E ratio of 12.0 and P/B ratio of 0.75 in August 2025. The trust offers quarterly distributions with a current average yield of approximately 6.2% (since being formed in 2022). Mapletree Pan Asia Commercial Trust’s share price is up by 11% year to date.
 
Mapletree Pan Asia Commercial Trust was formed from the merger of two Mapletree REITs in August 2022, creating one of Asia's largest commercial property REITs. Its diversified portfolio spans retail malls and office buildings in prime locations across major Asian cities, serving as a gateway for investors seeking exposure to Asia's commercial real estate recovery.

How to trade undervalued stocks with IG Singapore

1. Create a live or demo account
2. Find an opportunity among one of our 10,000+ stocks with our stock screener
3. Click ‘buy’ to go long or ‘sell’ to short
4. Set your position size
5. Take steps to manage your risk
6. Open and monitor your position

FAQs about undervalued stocks