There are always undervalued companies on the stock market, but there are even more opportunities today than a year or two ago. Not only are price-to-earnings multiples low for many companies, but growth opportunities aren't being appreciated either. 

Three companies that I think are cheap based on their long-term potential are General Motors (GM 4.66%), Disney (DIS 1.22%), and Wynn Resorts (WYNN 1.84%). 

More than an automaker

Investors have long been skeptical of the long-term value creation from automakers, and with good reason. The auto market is boom and bust, and periodically an automaker will be forced to go through bankruptcy, as General Motors did in 2009. Value simply doesn't accrue to shareholders the way it does in other industries. 

The growth of electric vehicles, and Tesla specifically as a competitor, make these threats even more prevalent for investors. But that doesn't mean GM stock isn't absurdly cheap right now.

Shares trade for just 6.8 times earnings and General Motors just generated $19.1 billion in cash flow from its auto business in the past year. On the fourth-quarter conference call, management said they believe demand for GM's vehicles will be high throughout 2023 -- guiding for $16 billion to $20 billion in auto operations cash flow -- and they won't be forced to reduce pricing in a way that will materially impact their earnings power. For at least the foreseeable future, the auto business looks strong. 

For investors thinking out more than a year or two, the best reason to own GM stock is its autonomous driving subsidiary Cruise.

The company has launched commercial operations in San Francisco, Phoenix, and Austin with more cities planned in 2023. In addition, the unit will launch the GM-produced Cruise Origin, which is a purpose-built vehicle for autonomous driving ridesharing.

If Cruise succeeds in becoming Uber without a driver, this could be a business worth many multiples of what investors are paying for GM stock right now.

The future of media

Investors have found plenty to criticize Disney about over the last couple of years. The studio business has struggled with COVID-19 because theaters were shut down, streaming is losing money, and former cash cows like ESPN are bleeding subscribers quarter after quarter.

But this is a company that will be one of the leaders in the media business for decades to come because of the way it's positioned itself over the last 20 years.

As streaming becomes a larger piece of the business, content companies are going to seek out either tentpole content that will attract subscribers or filler content that's like comfort food (Friends, The Office, etc.). Tentpole content is what Disney does best, and it has a slew of studios to produce filler content or it can be acquired from third parties.

In addition to the content side, Disney has a bigger theme park business than any of its competitors. The parks and experiences segment generated $7.9 billion in operating income in fiscal 2022, and that figure should go up as COVID-19 restrictions in the U.S., Europe, and China are lifted. 

The next few years will be turbulent for the media business, but it's likely that Disney emerges as one of the winners with Disney+ leading the way. Add in the studios and parks business, and this is a company built to last in media.

Don't underestimate gambling stocks

In 2019, Wynn Resorts generated $1.82 billion in adjusted property EBITDA, a proxy for cash flow coming from resorts and casinos. The pandemic clearly decimated those results, but there's a good case to be made that long-term cash flow will be even higher than those pre-pandemic numbers. And if it is, the company's current $21.9 billion enterprise value will look incredibly cheap. 

Investors already know that Las Vegas' recovery from the pandemic led to results that vastly exceeded those of 2019. Full-year results will be available soon, but recent results put Wynn Resorts on about an $800 million adjusted EBITDA run rate, nearly double the $413.9 million generated in 2019. 

Macao is a different story, yet to recover in any meaningful way because of China's zero-COVID policy. Adjusted EBITDA was negative $65.6 million last quarter, compared to positive $1.4 billion in 2019, but that could turn quickly.

China changed its zero-COVID policy last month and the country may be back to more normal travel patterns later this year. If Las Vegas is any indication, cash flow could exceed the $1.4 billion generated in 2019 by a wide margin. If it does, Wynn Resorts' stock will be extremely cheap. 

Stocks with lots of upside

For a variety of reasons, I think the market is underestimating GM, Disney, and Wynn Resorts. But they have very bright futures and are leaders in their respective businesses. That's why the stocks are cheap right now.