Some large-cap FTSE 100 shares capture a lot of attention when the company is believed to be undervalued. This makes it harder in some ways to profit, as it’s unlikely that there will be a huge disconnect with a multi-billion pound market cap firm. Yet when I look off the beaten track at some smaller firms, I believe I can find some value stocks that could yield me great results.

Problems abroad

One I’ve spotted is PZ Cussons (LSE:PZC). I feel this has stayed under the radar for several months, but strayed onto my screen earlier this week following the sharp 15% drop on Wednesday (18 September). This was due to the release of disappointing full-year financial results.

However, the main factor within the results that caused 29.7% fall in adjusted profit before tax was the situation in Africa. PZ Cussons has an active presence there and gets paid in local currency. Yet if it gets devalued, it can cause a hit to results when converted back to British pounds. This was the case with the 57% fall in the value of the Nigerian naira during the reporting period.

The extent of the fall means that the stock has almost halved in value over the past year. I think this is excessive, primarily because I believe the issues in Africa can be resolved. PZ Cussons is already in discussions about potentially selling its Africa operations. Further, it’s taking measures to try and deal more in US dollars in the countries, reducing its currency volatility.

Of course, a risk is that it can’t sell the division quickly and we get further devaluation over the next year. This would negatively impact financial results again. Yet at the core, PZ Cussons is a profitable business that has a long track record of being so.

Now’s the time

The other company is the Watches Of Switzerland Group (LSE:WOSG). I’ll admit that earlier this year I wrote about how I’d steer well clear of it after it lost 37% in a day back in January. The stock is still down 33% over the past year, but I feel the situation has now changed.

The drop came after the business issued a profit warning for the full-year following a disappointing festive trading season. At the time, I was rather pessimistic about the UK economy in general, with high inflation and non-existent economic growth. Therefore, why would a luxury watchmaker do well?

Fast forward to today and the UK is in much better shape. Interest rates have started to fall, inflation is close to the 2% target level and consumer sentiment is a bit stronger. The business has felt this, with an update earlier this month stating that “we have seen continued stabilisation of the UK market in both luxury watches and jewellery”.

Yet the share price is only up a modest 4% in the past six months. I feel it’s good value here. It offers me a way to make a play on the UK economy outperforming in the next year. My main risk is if we get some kind of spike in inflation or economic shock that causes consumer spending to slow down.

I like both stocks and have them on my watchlist to purchase when I have free money.