UK Stocks Trading Below Estimated Value For July 2025

As the United Kingdom's FTSE 100 index faces challenges due to weak trade data from China, investors are closely monitoring market fluctuations and their impact on global economies. In such an environment, identifying stocks that are trading below their estimated value can present potential opportunities for those looking to navigate the current economic landscape with a focus on long-term fundamentals.

Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom

Click here to see the full list of 48 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

NIOX Group (AIM:NIOX)

Overview: NIOX Group Plc designs, develops, and commercializes medical devices for asthma diagnosis, monitoring, and management globally with a market cap of £292.29 million.

Operations: The company generates revenue primarily from its NIOX® segment, amounting to £41.80 million.

Estimated Discount To Fair Value: 36.3%

NIOX Group is currently trading at £0.7, significantly below its estimated fair value of £1.1, suggesting it could be undervalued based on cash flows. Earnings are forecast to grow 34% annually, outpacing the UK market's 14.6%, although profit margins have declined from last year’s 25.8% to 8.1%. Despite this, revenue growth is expected at a robust 10.8% per year, surpassing the broader market's average growth rate of 3.6%.

• The analysis detailed in our NIOX Group growth report hints at robust future financial performance.
• Dive into the specifics of NIOX Group here with our thorough financial health report.

Empiric Student Property (LSE:ESP)

Overview: Empiric Student Property plc is a leading provider and operator of modern, predominantly direct-let premium student accommodation for key UK universities, with a market cap of £643.53 million.

Operations: The company's revenue segment primarily consists of £84.20 million from investments in student and associated commercial lettings.

Estimated Discount To Fair Value: 18.9%

Empiric Student Property is trading at £0.97, below its estimated fair value of £1.19, indicating potential undervaluation based on cash flows. Earnings are projected to grow significantly at 22.8% annually, outstripping the UK market's 14.6%. However, profit margins have decreased from last year's 66.3% to 40.9%, and revenue growth is expected at a modest 5.6% per year, though still above the UK market average of 3.6%. Recent M&A interest from Unite Group PLC could impact valuation dynamics further.

• Our earnings growth report unveils the potential for significant increases in Empiric Student Property's future results.
• Delve into the full analysis health report here for a deeper understanding of Empiric Student Property.

Moonpig Group (LSE:MOON)

Overview: Moonpig Group PLC operates as a data and technology platform specializing in online greeting cards and gifting across the Netherlands, Ireland, Australia, the United States, and the United Kingdom with a market cap of £691.26 million.

Operations: The company's revenue is primarily derived from its Moonpig segment at £262 million, followed by Greetz at £48.85 million, and Experiences contributing £39.21 million.

Estimated Discount To Fair Value: 47.6%

Moonpig Group, trading at £2.11, is significantly undervalued with an estimated fair value of £4.03, reflecting a potential opportunity based on cash flows. Despite high debt and negative shareholders' equity, revenue growth is forecasted at 7.3% annually, outpacing the UK market's 3.6%. Recent share buybacks worth £25 million and a recommended dividend of 2 pence highlight capital return efforts amidst leadership changes as CEO Nickyl Raithatha plans to step down.

• Our expertly prepared growth report on Moonpig Group implies its future financial outlook may be stronger than recent results.
• Click here to discover the nuances of Moonpig Group with our detailed financial health report.

Turning Ideas Into Actions

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Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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.

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