For investors, one of the most telling signals is the gap between a stock's intrinsic value and its market price. When intrinsic value—often estimated with discounted cash flow (DCF)—exceeds the trading price, the difference represents upside potential.

This week, five companies stand out for large DCF-implied upside. Below, we highlight them and then show how to calculate upside yourself using FMP's DCF Valuation API.

This analysis belongs to FMP's continuing Data in Action series, where real-time market data meets actionable insight for portfolio managers and analysts.

For similar research-backed takeaways, have a look at 5 Companies with the Biggest Upside Potential — and How to Find Them with the FMP API.

Standout Stocks This Week: Ranked by DCF-Estimated Upside

1) Jefferies Financial Group Inc. (NYSE: JEF)

• DCF Value: $188.05
  
  
• Market Price: $50.89
  
  
• Upside Potential: +270%

Jefferies remains exposed to capital markets cycles, but unlike traditional brokerage-heavy firms, it has broadened its earnings base through advisory, asset management, and fee-driven segments. If deal activity and capital issuance normalize, operating leverage could unlock value that current pricing does not fully reflect — a gap the DCF highlights.

2) Sensata Technologies (NYSE: ST)

• DCF Value: $55.77
  
  
• Market Price: $29.03
  
  
• Upside Potential: +92%

Auto/industrial cyclicality pressures near-term sentiment, but content gains in sensing and electrification support multi-year cash flows. Normalizing volumes and targeted cost actions underpin the valuation case.

3) Cognizant Technology Solutions (NASDAQ: CTSH)

• DCF Value: $103.28
  
  
• Market Price: $65.80
  
  
• Upside Potential: +57%

Margin recovery and a clearer mix shift toward higher-value digital work can lift cash generation. If top-line growth reverts toward peers while cost discipline holds, the DCF gap can narrow quickly.

4) First Horizon National Corporation (NYSE: FHN)

• DCF Value: $29.89
  
  
• Market Price: $22.26
• Upside Potential: +34%

A solid retail/commercial banking footprint and improving credit metrics set the stage for normalized earnings. The model implies room for multiple expansion if funding costs stabilize and loan growth re-accelerates.

5) Spectrum Brands Holdings Inc. (NYSE: SPB)

• DCF Value: $57.20
  
  
• Market Price: $50.35
  
  
• Upside Potential: +14%

Spectrum's ongoing portfolio streamlining and balance sheet cleanup continue to unlock optionality. Execution on margin expansion and disciplined capital allocation will be key to closing the remaining valuation gap.

Interpreting Upside: Beyond the DCF Number

A wide DCF gap is useful — but only when assessed with context. To refine signal quality:

Revisit Core Assumptions

Review growth rates, margin expectations, WACC inputs, and terminal growth assumptions. Even small adjustments can materially shift fair value estimates.

Check Valuation Multiples for Alignment

Overlay DCF conclusions with relative metrics like EV/EBITDA and P/E to ensure outputs are grounded in reasonable peer comparisons.

Account for Sector Cyclicality

For industries tied to macro cycles — such as autos, energy, and financial services — smooth cash flows to avoid anchoring on peak or trough conditions.

Look for Realizable Catalysts

Upside potential gains conviction when paired with identifiable triggers: product rollouts, asset sales, deleveraging, or cost restructuring.

If you're sharpening your DCF technique, FMP's guide on walk-through DCF logic and pitfalls is a concise refresher that aligns modeling choices with real-world data.

Automating Intrinsic Value Tracking with the FMP DCF Valuation API

Running valuation screens manually can be time-consuming. The FMP DCF Valuation API allows upside calculations to be executed programmatically for any ticker.

Step 1. Call the DCF Valuation API

Use your ticker of interest:
https://financialmodelingprep.com/stable/discounted-cash-flow?symbol=AAPL&apikey=YOUR_API_KEY

Sample response

[

{

"symbol": "AAPL",

"date": "2025-02-04",

"dcf": 147.27,

"Stock Price": 231.80

}

]

Step 2. Calculate Upside Percentage

Upside % = (DCF - Stock Price) / Stock Price × 100
Example with the sample above: -36% (overvalued vs. DCF).

Step 3. Build a Screening Loop for Opportunities

Run the calculation across a symbol list and rank results by positive upside.

At this point, many users begin integrating other endpoints — and a visit to the FMP's homepage can serve as a starting point for expanding valuation workflows as new datasets become relevant.

Scaling Your Valuation Workflow

Start testing on the Basic plan for a handful of names. For broader coverage across all U.S. tickers and deeper history, step up to Starter. Professional workflows that need U.K./Canada coverage and higher call limits will benefit from FMP's Premium plan.

Scaling Valuation Screens Across Teams

Running the DCF API locally is helpful—centralizing it is transformative. When DCF outputs are joined with Financial Statements, Key Metrics/Ratios, and Analyst Estimates in your internal dashboards, PMs, research, and risk all work from the same, scheduled dataset.

With FMP's Enterprise Plan, valuation assumptions can be standardized, audited, and version-controlled — turning individual analyst models into a unified signal system that powers allocation frameworks and monitoring tools across the entire organization.

Turning Valuation Data into Investment Signals

DCF-implied upside focuses attention where it matters. First Horizon, Cognizant, Jefferies, Sensata, and Spectrum Brands each show noteworthy gaps—backed by narratives that can close them. By automating these calculations with the FMP DCF Valuation API, you turn a time-consuming task into a repeatable screen that updates as prices and fundamentals move.