3 UK Stocks That Are Up To 49.3% Below Intrinsic Value Estimates
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The United Kingdom market has recently faced challenges, with the FTSE 100 index closing lower due to weak trade data from China and concerns about global economic recovery. Despite these headwinds, there are opportunities to find undervalued stocks that may offer significant potential for growth. In this article, we will explore three UK stocks that are currently trading up to 49.3% below their intrinsic value estimates.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Liontrust Asset Management (LSE:LIO) | ￡6.34 | ￡12.36 | 48.7% |
| Gaming Realms (AIM:GMR) | ￡0.40 | ￡0.77 | 48.1% |
| Tracsis (AIM:TRCS) | ￡6.00 | ￡11.43 | 47.5% |
| GlobalData (AIM:DATA) | ￡2.18 | ￡4.12 | 47.1% |
| AstraZeneca (LSE:AZN) | ￡129.20 | ￡254.77 | 49.3% |
| C&C Group (LSE:CCR) | ￡1.508 | ￡2.90 | 48% |
| Mercia Asset Management (AIM:MERC) | ￡0.348 | ￡0.68 | 48.7% |
| Foxtons Group (LSE:FOXT) | ￡0.658 | ￡1.23 | 46.5% |
| SysGroup (AIM:SYS) | ￡0.34 | ￡0.66 | 48.8% |
| Nexxen International (AIM:NEXN) | ￡2.76 | ￡5.32 | 48.1% |
Let's explore several standout options from the results in the screener.
AstraZeneca
Overview: AstraZeneca PLC is a biopharmaceutical company engaged in the discovery, development, manufacture, and commercialization of prescription medicines with a market cap of ￡200.30 billion.
Operations: AstraZeneca's revenue from biopharmaceuticals amounts to $49.13 billion.
Estimated Discount To Fair Value: 49.3%
AstraZeneca is trading at ￡129.2, significantly below its estimated fair value of ￡254.77, suggesting it may be undervalued based on discounted cash flow analysis. Despite high debt levels and large one-off items impacting financial results, revenue is forecast to grow 6.4% per year, outpacing the UK market's 3.7%. Recent positive trial results for CALQUENCE and Imfinzi highlight potential future revenue streams, supporting the company's robust cash flow outlook amidst ongoing strategic partnerships and product developments.
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Our growth report here indicates AstraZeneca may be poised for an improving outlook.
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Click here to discover the nuances of AstraZeneca with our detailed financial health report.
Foresight Group Holdings
Overview: Foresight Group Holdings Limited is an infrastructure and private equity manager operating in the United Kingdom, Italy, Luxembourg, Ireland, Spain, and Australia with a market cap of ￡575.16 million.
Operations: The company's revenue segments include ￡84.17 million from Infrastructure, ￡47.35 million from Private Equity, and ￡9.80 million from Foresight Capital Management.