U.K. Undervalued over 20% based on DCF

AstraZeneca

Market Cap: UK£172.2b

A biopharmaceutical company, focuses on the discovery, development, manufacture, and commercialization of prescription medicines.

HSBC Holdings

Market Cap: UK£159.2b

Engages in the provision of banking and financial products and services worldwide.

British American Tobacco

Market Cap: UK£90.3b

Provides tobacco and nicotine products to consumers in the Americas, Europe, the Asia-Pacific, the Middle East, Africa, and the United States.

BP

Market Cap: UK£61.7b

An integrated energy company, provides carbon products and services.

BAE Systems

Market Cap: UK£54.3b

Provides defense, aerospace, and security solutions in the United States, the United Kingdom, the Middle East, Australia, Japan, Europe, and internationally.

Lloyds Banking Group

Market Cap: UK£44.9b

Provides a range of banking and financial products and services in the United Kingdom and internationally.

NatWest Group

Market Cap: UK£41.4b

Provides banking and financial products and services in the United Kingdom and internationally.

Reckitt Benckiser Group

Market Cap: UK£37.8b

Manufactures and sells health, hygiene, and nutrition products in the United Kingdom and internationally.

Haleon

Market Cap: UK£32.8b

Engages in the research, development, manufacture, and sale of various consumer healthcare products in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific.

Standard Chartered

Market Cap: UK£31.1b

Provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas.

Imperial Brands

Market Cap: UK£23.6b

Manufactures, imports, markets, and sells tobacco and tobacco-related products in Europe, the Americas, Africa, the Asia, Australasia, and internationally.

Aviva

Market Cap: UK£19.3b

Provides various insurance, retirement, and wealth products in the United Kingdom, Ireland, Canada, and internationally.

International Consolidated Airlines Group

Market Cap: UK£17.4b

Engages in the provision of passenger and cargo transportation services in the North Atlantic, Latin America, the Caribbean, Europe, Africa, the Middle East, South Asia, the Asia Pacific, and internationally.

Admiral Group

Market Cap: UK£10.4b

A financial services company, provides insurance and personal lending products in the United Kingdom, France, Italy, Spain, and the United States.

Smiths Group

Market Cap: UK£7.6b

Operates as an industrial technology company in Americas, Europe, the Asia Pacific, and internationally.

Bunzl

Market Cap: UK£7.3b

Operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally.

Intertek Group

Market Cap: UK£7.2b

Provides quality assurance solutions to various industries in the United Kingdom, the United States, China, Australia, and internationally.

Marks and Spencer Group

Market Cap: UK£6.9b

Operates various retail stores.

Melrose Industries

Market Cap: UK£6.8b

Designs and delivers aerospace components and systems for civil and defence markets in the United Kingdom, rest of Europe, North America, and internationally.

Entain

Market Cap: UK£6.4b

Operates as a sports-betting and gaming company in the United Kingdom, Ireland, Italy, rest of Europe, Australia, New Zealand, and internationally.

ICG

Market Cap: UK£6.1b

A private equity firm specializing in direct and fund of fund investments.

M&G

Market Cap: UK£6.1b

Through its subsidiaries, engages in savings and investment businesses in the United Kingdom and internationally.

ConvaTec Group

Market Cap: UK£4.7b

Engages in the development, manufacturing, and sale of medical products, services and technologies in Europe, North America, and internationally.

Burberry Group

Market Cap: UK£4.6b

Engages in manufacturing, retail, and wholesale of luxury goods under the Burberry brand in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas.

Mondi

Market Cap: UK£4.6b

Engages in the manufacture and sale of packaging and paper solutions in Africa, Western Europe, Emerging Europe, Russia, North America, South America, Asia, and Australia.

DCC

Market Cap: UK£4.6b

Engages in the sales, marketing, and distribution of carbon energy solutions in the Republic of Ireland, the United Kingdom, France, the United States, and internationally.

JD Sports Fashion

Market Cap: UK£4.3b

Engages in the retail of branded sports fashion and outdoor clothing, footwear, accessories, and equipment for women and men in the United Kingdom, Europe, North America, the Asia Pacific, and internationally.

Land Securities Group

Market Cap: UK£4.3b

Land Securities Group Plc is one of the leading real estate companies in the UK.

IG Group Holdings

Market Cap: UK£3.9b

A fintech company, engages in the online trading business worldwide.

Persimmon

Market Cap: UK£3.7b

Operates as a house builder in the United Kingdom.

Croda International

Market Cap: UK£3.7b

Engages in the consumer care, life science, and industrial specialty businesses in Europe, the Middle East, Africa, North America, Asia, and Latin America.

Unite Group

Market Cap: UK£3.6b

Owns, manages, and develops purpose-built student accommodation facilities for the higher education sector in the United Kingdom.

Lion Finance Group

Market Cap: UK£3.3b

Through its subsidiaries, provides banking and financial services with focus on the Georgian and Armenian markets.

Johnson Matthey

Market Cap: UK£2.9b

Engages in the clean air, catalyst and hydrogen technology, and platinum group metals (PGM) service businesses in the United Kingdom, Germany, rest of Europe, the United States, rest of North America, China, rest of Asia, and internationally.

Deliveroo

Market Cap: UK£2.7b

A holding company, operates an online on-demand food and non-food delivery platform in the United Kingdom, Ireland, France, Italy, Belgium, Hong Kong, Singapore, the United Arab Emirates, Kuwait, and Qatar.

Rotork

Market Cap: UK£2.6b

Designs, manufactures, and markets industrial flow control and instrumentation solutions for the oil and gas, water and wastewater, power, chemical process, and industrial markets in the United Kingdom, Asia Pacific, the United States, Europe, the Middle East, Africa, and internationally.