3 UK Stocks Estimated To Be Undervalued In January 2025

As the United Kingdom's FTSE 100 index experiences pressure from weak trade data out of China, investors are navigating a landscape where global economic challenges impact market performance. In such conditions, identifying undervalued stocks becomes crucial, as these opportunities may offer potential for growth despite broader market uncertainties.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Fevertree Drinks (AIM:FEVR)	£6.74	£13.12	48.6%
Brickability Group (AIM:BRCK)	£0.64	£1.27	49.5%
Bellway (LSE:BWY)	£24.92	£48.45	48.6%
GlobalData (AIM:DATA)	£1.89	£3.74	49.4%
Zotefoams (LSE:ZTF)	£3.15	£5.82	45.9%
Tracsis (AIM:TRCS)	£5.00	£9.80	49%
Duke Capital (AIM:DUKE)	£0.306	£0.58	47.5%
Vp (LSE:VP.)	£5.625	£10.14	44.5%
Victrex (LSE:VCT)	£10.76	£19.86	45.8%
Quartix Technologies (AIM:QTX)	£1.56	£3.08	49.3%

Click here to see the full list of 55 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

GB Group (AIM:GBG)

Overview: GB Group plc, along with its subsidiaries, offers identity data intelligence products and services across the United Kingdom, the United States, Australia, and internationally, with a market cap of £857.20 million.

Operations: The company's revenue segments consist of £38.14 million from Fraud, £159.78 million from Identity, and £83.94 million from Location services.

Estimated Discount To Fair Value: 28.0%

GB Group plc is trading at £3.4, significantly below its estimated fair value of £4.72, representing a 28% discount. Despite large one-off items affecting recent results, the company has turned profitable with a net income of £1.58 million for the half year ended September 2024. Earnings are forecast to grow significantly at 36.6% annually, outpacing the UK market average growth rate of 14.4%, indicating potential undervaluation based on cash flows.

• Our expertly prepared growth report on GB Group implies its future financial outlook may be stronger than recent results.
• Get an in-depth perspective on GB Group's balance sheet by reading our health report here.

Judges Scientific (AIM:JDG)

Overview: Judges Scientific plc designs, manufactures, and sells scientific instruments with a market cap of £561.27 million.

Operations: The company generates revenue through its Vacuum segment, which accounts for £65.40 million, and its Materials Sciences segment, contributing £70.20 million.

Estimated Discount To Fair Value: 23.4%

Judges Scientific is trading at £84.5, below its estimated fair value of £110.3, reflecting a 23.4% discount and significant undervaluation based on cash flows. Despite recent insider selling and high debt levels, the company has seen earnings growth of 18.7% over the past year and is expected to grow earnings significantly at 29.4% annually, surpassing UK market averages. Recent board changes include Ralph Elman becoming Non-Executive Chair in January 2025.

• Our earnings growth report unveils the potential for significant increases in Judges Scientific's future results.
• Take a closer look at Judges Scientific's balance sheet health here in our report.

Gym Group (LSE:GYM)

Overview: The Gym Group plc operates a network of gym facilities under the Gym Group brand name in the United Kingdom, with a market cap of £266.29 million.

Operations: The company generates revenue of £216.30 million from providing high-quality health and fitness facilities across its network in the United Kingdom.

Estimated Discount To Fair Value: 16.1%

Gym Group is trading at £1.49, below its estimated fair value of £1.78, suggesting it is undervalued based on cash flows. The stock price is projected to rise by 27%, with earnings expected to grow significantly at 113.4% annually as the company becomes profitable over the next three years. Recent strategic appointments, including Hamish Latchem as chief property officer, aim to support expansion plans with a target of opening 50 new gyms by 2026.

• The analysis detailed in our Gym Group growth report hints at robust future financial performance.
• Click here and access our complete balance sheet health report to understand the dynamics of Gym Group.

Key Takeaways

• Discover the full array of 55 Undervalued UK Stocks Based On Cash Flows right here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready To Venture Into Other Investment Styles?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com