GlobalData And 2 UK Stocks Possibly Trading Below Fair Value
In This Article:
The United Kingdom's FTSE 100 index recently faltered, closing lower after weak trade data from China indicated ongoing struggles in the global economy. In such a volatile market, identifying undervalued stocks can offer potential opportunities for investors looking to capitalize on discrepancies between current prices and intrinsic values.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Topps Tiles (LSE:TPT) | ￡0.44 | ￡0.87 | 49.5% |
| Gaming Realms (AIM:GMR) | ￡0.401 | ￡0.76 | 47% |
| Victrex (LSE:VCT) | ￡9.41 | ￡17.23 | 45.4% |
| Informa (LSE:INF) | ￡8.346 | ￡16.21 | 48.5% |
| Redcentric (AIM:RCN) | ￡1.30 | ￡2.44 | 46.6% |
| SysGroup (AIM:SYS) | ￡0.34 | ￡0.65 | 48% |
| Foxtons Group (LSE:FOXT) | ￡0.626 | ￡1.18 | 46.9% |
| Hochschild Mining (LSE:HOC) | ￡1.87 | ￡3.53 | 47.1% |
| BATM Advanced Communications (LSE:BVC) | ￡0.20 | ￡0.36 | 45.1% |
| Gulf Keystone Petroleum (LSE:GKP) | ￡1.135 | ￡2.05 | 44.6% |
We'll examine a selection from our screener results.
GlobalData
Overview: GlobalData Plc, with a market cap of ￡1.66 billion, operates in Europe, North America, and the Asia Pacific providing business information through proprietary data, analytics, and insights.
Operations: GlobalData generates revenue of ￡276.80 million from its proprietary data, analytics, and insights across Europe, North America, and the Asia Pacific.
Estimated Discount To Fair Value: 44.2%
GlobalData is trading at ￡2.07, significantly below its estimated fair value of ￡3.71, suggesting it is undervalued based on cash flows. The company forecasts strong earnings growth of 27.69% per year, outpacing the UK market's 14.2%. However, recent insider selling and a dividend yield of 2.27%, which isn't well covered by earnings, are potential concerns. Recent buyback announcements and solid half-year earnings results further support its valuation prospects.
JD Sports Fashion
Overview: JD Sports Fashion Plc is a retailer of branded sports fashion and outdoor clothing, footwear, accessories, and equipment for all ages across the UK, Republic of Ireland, Europe, North America, and internationally with a market cap of ￡7.98 billion.
Operations: The company's revenue segments include ￡9.98 billion from Sports Fashion and ￡559.90 million from Outdoor products.
Estimated Discount To Fair Value: 34%
JD Sports Fashion is trading at ￡1.54, significantly below its estimated fair value of ￡2.33, indicating it is undervalued based on cash flows. Despite high volatility in its share price over the past three months, JD Sports forecasts earnings growth of 15.87% per year and revenue growth of 9% per year, outpacing the UK market's 3.7%. Recent board changes and confirmed lower-end earnings guidance for 2024 are factors to monitor closely.