3 UK Stocks Estimated To Be Trading At Up To 44.7% Below Intrinsic Value

The United Kingdom's stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines due to weak trade data from China, highlighting global economic interdependencies. In such a fluctuating environment, identifying undervalued stocks can be crucial for investors seeking opportunities; these stocks may offer potential value by trading below their intrinsic worth despite broader market pressures.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Gaming Realms (AIM:GMR)	£0.375	£0.74	49.1%
CAB Payments Holdings (LSE:CABP)	£1.142	£2.22	48.6%
AstraZeneca (LSE:AZN)	£112.06	£220.62	49.2%
Gulf Keystone Petroleum (LSE:GKP)	£1.287	£2.48	48%
Redcentric (AIM:RCN)	£1.2075	£2.38	49.3%
Mpac Group (AIM:MPAC)	£4.575	£8.94	48.8%
Foxtons Group (LSE:FOXT)	£0.606	£1.19	49.2%
Auction Technology Group (LSE:ATG)	£4.52	£8.41	46.3%
Quartix Technologies (AIM:QTX)	£1.60	£3.07	47.9%
Genel Energy (LSE:GENL)	£0.77	£1.53	49.5%

Click here to see the full list of 60 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener.

Fintel (AIM:FNTL)

Overview: Fintel Plc provides intermediary services and distribution channels to the retail financial services sector in the United Kingdom, with a market cap of £296.93 million.

Operations: The company's revenue is derived from three segments: Research & Fintech (£24.20 million), Distribution Channels (£21.40 million), and Intermediary Services (£23.30 million).

Estimated Discount To Fair Value: 36.6%

Fintel is trading at £2.85, significantly below its estimated fair value of £4.5, presenting a potentially undervalued opportunity based on discounted cash flow analysis. Despite a decline in profit margins from 12.7% to 8.6%, earnings are projected to grow at an impressive rate of nearly 34% annually, outpacing the UK market's growth forecast of 14.1%. Recent financials show H1 sales increased to £35.7 million, although net income decreased year-on-year to £2.1 million.

• In light of our recent growth report, it seems possible that Fintel's financial performance will exceed current levels.
• Click here to discover the nuances of Fintel with our detailed financial health report.

Judges Scientific (AIM:JDG)

Overview: Judges Scientific plc designs, manufactures, and sells scientific instruments with a market cap of £611.00 million.

Operations: The company's revenue is derived from two main segments: Vacuum (£65.40 million) and Materials Sciences (£70.20 million).

Estimated Discount To Fair Value: 14.6%

Judges Scientific appears undervalued, trading at £92, below its estimated fair value of £107.69. Despite a slight decline in sales to £60.8 million for H1 2024, net income rose significantly to £4.2 million from the previous year. Earnings are forecasted to grow at 23% annually, surpassing UK market expectations and indicating robust cash flow potential despite high debt levels and insider selling activity in recent months.

• Our comprehensive growth report raises the possibility that Judges Scientific is poised for substantial financial growth.
• Delve into the full analysis health report here for a deeper understanding of Judges Scientific.

YouGov (AIM:YOU)

Overview: YouGov plc offers online market research services across regions including the United Kingdom, the United States, the Middle East, Mainland Europe, and the Asia Pacific with a market cap of £567.48 million.

Operations: The company's revenue is primarily derived from Data Products, which generated £85.10 million, and Segment Adjustment, which accounted for £181.70 million.

Estimated Discount To Fair Value: 44.7%

YouGov is trading at £4.86, significantly below its estimated fair value of £8.80, highlighting potential undervaluation based on discounted cash flow analysis. Despite a challenging year with a net loss of £2.4 million compared to last year's net income of £34.5 million, earnings are projected to grow 28.8% annually, outpacing the UK market's growth rate and suggesting strong future cash flow prospects amid high debt levels and recent executive changes.

• Insights from our recent growth report point to a promising forecast for YouGov's business outlook.
• Click to explore a detailed breakdown of our findings in YouGov's balance sheet health report.

Summing It All Up

• Dive into all 60 of the Undervalued UK Stocks Based On Cash Flows we have identified here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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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