For investors, one of the most telling indicators is the difference between a stock's intrinsic value and its market price. When a company's intrinsic value—determined through discounted cash flow (DCF) analysis or similar valuation methods—exceeds its current trading price, the gap represents the stock's upside potential.

This metric helps identify undervalued companies that the market may be overlooking. Recently, five firms have stood out for having particularly large upside potential based on FMP's DCF valuations.

Below, we spotlight these companies and explain how you can calculate upside potential yourself using FMP's DCF Valuation API.

5 Undervalued Stocks This Week, Ranked by DCF Upside

1. Darling Ingredients Inc (NYSE: DAR)

• DCF Value: $122.05
  
  
• Market Price: $31.75
  
  
• Upside Potential: +284.3%
  
  

Darling Ingredients, which converts organic waste into renewable fuels and specialty ingredients, currently trades far below its modeled fair value. The outsized upside reflects market skepticism amid cyclical softness, but long-term cash-flow potential remains robust given rising global demand for sustainable feedstocks.

2. Biogen Inc (NASDAQGS: BIIB)

• DCF Value: $521.22
  
  
• Market Price: $159.88
  
  
• Upside Potential: +226.0%
  
  

Biogen's enormous upside gap stems from the disconnect between near-term investor sentiment and long-term cash-flow potential in its neuroscience pipeline. DCF valuation suggests deep undervaluation relative to the company's durable franchises in multiple-sclerosis treatments and its emerging Alzheimer's therapy.

3. Genpact Ltd (NYSE: G)

• DCF Value: $77.07
  
  
• Market Price: $41.21
  
  
• Upside Potential: +87.1%
  
  

Genpact's strong presence in digital-transformation and business-process outsourcing supports significant valuation headroom. With recurring revenue streams and long-term enterprise contracts, the company's intrinsic value points to a potential near-doubling in price if fundamentals persist.

4. Fiserv Inc (NYSE: FI)

• DCF Value: $197.40
  
  
• Market Price: $127.56
  
  
• Upside Potential: +54.7%
  
  

A payments-technology powerhouse, Fiserv trades below its implied fair value despite steady double-digit earnings growth. The firm's merchant-acquiring and digital-banking platforms continue to scale globally, which could justify a rerating closer to DCF estimates as margins expand.

5. Lear Corp (NYSE: LEA)

• DCF Value: $123.90
  
  
• Market Price: $103.99
  
  
• Upside Potential: +19.1%

Lear, a global leader in automotive seating and e-systems, shows modest but meaningful upside as DCF-based valuation implies room for multiple expansion. With electrification and software integration reshaping auto manufacturing, the company's consistent cash generation supports a higher intrinsic value than the market currently reflects.

Interpreting Upside: Beyond the DCF Number

A large DCF gap is a starting point, not an automatic buy signal.
Here's how to separate signal from noise:

1. Validate inputs - Review growth, margin, and discount-rate assumptions; unrealistic WACC or terminal values can distort fair value.
   
   
2. Cross-check with multiples - Compare DCF results against EV/EBITDA or P/E ratios to confirm reasonableness.
   
   
3. Factor in cyclicality - Sectors like autos or energy show wider valuation swings; normalize cash flows across cycles.
   
   
4. Assess catalysts - A DCF undervaluation is more meaningful when supported by upcoming events such as product launches, spin-offs, or debt reduction.
   
   

For deeper guidance on refining your valuation process, see Steering Clear of Common Pitfalls for Accurate Valuation — a quick read that outlines how to avoid modeling errors and improve forecast reliability.

How to Calculate Upside Potential with the FMP API

Instead of running spreadsheets manually, you can use FMP's Discounted Cash Flow (DCF) Valuation API to pull intrinsic value estimates programmatically.

1. Call the DCF Valuation API

Use the following endpoint, replacing the symbol with the company you're analyzing.

Endpoint:

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

}

]

2. Compute Upside Potential

Apply the formula:

Upside % = (DCF - Stock Price) / Stock Price × 100

For example, if Apple's DCF is $147.27 and its stock price is $231.80:

Upside % = (147.27 - 231.80) / 231.80 × 100 = -36%

This would imply the stock is overvalued relative to DCF.

3. Screen for Opportunities

Loop through multiple tickers, calculate upside for each, and then filter for the top candidates with the largest positive percentages. This gives you a dynamic watchlist of undervalued stocks.

Scaling Your Valuation Workflow

You can start experimenting with the Free plan, which allows you to test the API on a handful of companies. For broader coverage, the Starter plan unlocks access to all U.S.-listed symbols and deeper historical data—ideal for multi-company or multi-year analysis.

Professional users needing global coverage can upgrade to the Premium plan, which adds U.K. and Canadian exchanges with higher call limits for enterprise-scale research.

Scaling Valuation Screens Across Teams

Running the DCF API on your laptop is useful; integrating it into centralized dashboards is transformative.
When DCF outputs are joined with Financial Statements, Key Metrics/Ratios, and Analyst Estimates, portfolio managers, research, and risk teams all work from a unified, real-time dataset.

For larger organizations, FMP's Enterprise plan adds governance and speed:

• Standardize assumptions (e.g., WACC ranges, terminal growth caps).
  
  
• Maintain versioned audit trails for compliance.
  
  
• Enable portfolio-wide screens and upside heat maps.
  
  

In practice, a small analyst script becomes a firm-wide signal engine that scales across portfolios and accelerates decision-making.

Putting Valuation Signals to Work

Upside potential remains one of the clearest ways to spot undervalued opportunities. Lear Corp, Biogen, Fiserv, Genpact, and Darling Ingredients currently rank among the highest based on DCF-implied valuation gaps.

By leveraging FMP's DCF Valuation API, analysts can automate the process of identifying mispriced stocks and build repeatable, data-driven valuation workflows.

When you connect the DCF Valuation API with FMP's other datasets — from fundamentals to analyst estimates — your upside screens evolve from one-off checks into a living watchlist that updates as markets move. Discover the full data stack behind this approach on the Financial Modeling Prep homepage.