3 UK Stocks Estimated To Be Undervalued By Up To 44.5%
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The United Kingdom's FTSE 100 index has recently faced downward pressure, driven by weak trade data from China and global economic uncertainties. Despite these challenges, there are opportunities to identify undervalued stocks that may offer significant potential for investors.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Begbies Traynor Group (AIM:BEG) | ￡0.99 | ￡1.96 | 49.6% |
| Energean (LSE:ENOG) | ￡9.885 | ￡18.74 | 47.2% |
| WPP (LSE:WPP) | ￡7.496 | ￡14.26 | 47.4% |
| LSL Property Services (LSE:LSL) | ￡3.45 | ￡6.35 | 45.7% |
| Ibstock (LSE:IBST) | ￡1.86 | ￡3.40 | 45.3% |
| Forterra (LSE:FORT) | ￡1.724 | ￡3.32 | 48.1% |
| Velocity Composites (AIM:VEL) | ￡0.43 | ￡0.81 | 46.9% |
| Accsys Technologies (AIM:AXS) | ￡0.549 | ￡1.04 | 47.3% |
| Franchise Brands (AIM:FRAN) | ￡1.725 | ￡3.16 | 45.5% |
| M&C Saatchi (AIM:SAA) | ￡2.10 | ￡4.02 | 47.7% |
Underneath we present a selection of stocks filtered out by our screen.
Fintel
Overview: Fintel Plc provides intermediary services and distribution channels to the retail financial services sector in the United Kingdom, with a market cap of ￡327.14 million.
Operations: Revenue segments for Fintel Plc include Research & Fintech (￡22.30 million), Distribution Channels (￡20.20 million), and Intermediary Services (￡22.40 million).
Estimated Discount To Fair Value: 11.1%
Fintel is trading at ￡3.14, slightly below its estimated fair value of ￡3.53, making it undervalued based on discounted cash flows. Earnings are projected to grow significantly at 23.88% annually over the next three years, outpacing the UK market's growth rate of 13.1%. However, insider selling has been significant in the past three months and Return on Equity is forecasted to be relatively low at 12.8% in three years time.
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According our earnings growth report, there's an indication that Fintel might be ready to expand.
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Dive into the specifics of Fintel here with our thorough financial health report.
Deliveroo
Overview: Deliveroo plc operates an online food delivery platform across multiple countries including the United Kingdom, Ireland, France, and others, with a market cap of approximately ￡2.03 billion.
Operations: The company's revenue primarily comes from the operation of an on-demand food delivery platform, generating ￡2.03 billion.
Estimated Discount To Fair Value: 44.5%
Deliveroo is trading at ￡1.30, significantly below its estimated fair value of ￡2.34, indicating it is undervalued based on cash flows. Earnings have grown 12.1% annually over the past five years and are forecast to grow 2.08% per year, with profitability expected within three years—above average market growth rates. Recent takeover interest from DoorDash boosted shares temporarily but talks ended due to valuation disagreements, potentially signaling future acquisition interest.