Estimated Discount To Fair Value: 39.4%

Forterra, trading at ￡1.88, is markedly below our fair value estimate of ￡3.09, indicating significant undervaluation based on discounted cash flows. Despite a recent dividend cut to 2.0 pence and a 6% revenue drop in early 2024, Forterra's earnings are expected to grow robustly by 26.2% annually, outperforming the UK market projection of 12.6%. However, its debt is poorly covered by operating cash flow and profit margins have declined from last year’s levels.

• The growth report we've compiled suggests that Forterra's future prospects could be on the up.

• Click here and access our complete balance sheet health report to understand the dynamics of Forterra.

Deliveroo

Overview: Deliveroo plc is a holding company that operates an online food delivery platform across several countries including the UK, Ireland, France, Italy, Belgium, and parts of Asia and the Middle East, with a market capitalization of approximately ￡2.02 billion.

Operations: The company generates revenue primarily through its operation of an on-demand food delivery platform, totaling ￡2.03 billion.

Estimated Discount To Fair Value: 44.6%

Deliveroo, currently trading at ￡1.29, is significantly undervalued by 44.6% against our fair value estimate of ￡2.33, highlighting potential in cash flow perspectives despite recent market fluctuations due to failed takeover talks with US-based DoorDash. While its revenue growth at 7.7% annually outpaces the UK market's 3.5%, Deliveroo's forecast to turn profitable within three years aligns with an above-market average growth trajectory, although its projected return on equity remains modest at 15.1%.

• Insights from our recent growth report point to a promising forecast for Deliveroo's business outlook.

• Click here to discover the nuances of Deliveroo with our detailed financial health report.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AIM:RST LSE:FORT and LSE:ROO.

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