UK Stocks That May Be Trading Below Their Estimated Value

As the United Kingdom's FTSE 100 index faces downward pressure due to weak trade data from China and global market uncertainties, investors are keenly observing potential opportunities amidst these challenges. In such a fluctuating environment, identifying stocks that may be trading below their estimated value can offer a strategic advantage, as they might provide long-term growth potential when broader market conditions stabilize.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Victorian Plumbing Group (AIM:VIC)	£0.704	£1.18	40.2%
TBC Bank Group (LSE:TBCG)	£48.20	£95.53	49.5%
On the Beach Group (LSE:OTB)	£2.58	£4.19	38.4%
NIOX Group (AIM:NIOX)	£0.71	£1.10	35.3%
Moonpig Group (LSE:MOON)	£2.11	£3.99	47.1%
Man Group (LSE:EMG)	£1.664	£3.30	49.5%
Kromek Group (AIM:KMK)	£0.052	£0.089	41.9%
Deliveroo (LSE:ROO)	£1.772	£3.07	42.2%
Coats Group (LSE:COA)	£0.733	£1.14	35.5%
Advanced Medical Solutions Group (AIM:AMS)	£2.01	£3.51	42.7%

Click here to see the full list of 23 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Applied Nutrition (LSE:APN)

Overview: Applied Nutrition Plc manufactures, wholesales, and retails sports nutritional products in the United Kingdom and internationally, with a market cap of £329.50 million.

Operations: The company generates revenue primarily from its Vitamins & Nutrition Products segment, totaling £88.35 million.

Estimated Discount To Fair Value: 33.5%

Applied Nutrition is trading at £1.32, significantly below its estimated fair value of £1.98, suggesting undervaluation based on discounted cash flow analysis. Its earnings are forecast to grow 15.72% annually, outpacing the UK market's growth rate of 13.2%. Recent board appointments include Peter Cowgill and Deepti Velury Bakhshi, adding strategic leadership expertise that could support future growth initiatives and operational efficiencies in line with its revenue projections exceeding the UK market average.

• Insights from our recent growth report point to a promising forecast for Applied Nutrition's business outlook.
• Navigate through the intricacies of Applied Nutrition with our comprehensive financial health report here.

Man Group (LSE:EMG)

Overview: Man Group Limited is a publicly owned investment manager with a market cap of approximately £1.88 billion.

Operations: The company generates revenue primarily from its Investment Management Business, which amounts to $1.31 billion.

Estimated Discount To Fair Value: 49.5%

Man Group is trading at £1.66, significantly below its estimated fair value of £3.3, highlighting undervaluation based on discounted cash flow analysis. Earnings are forecast to grow 32.8% annually, surpassing the UK market's growth rate of 13.3%. Despite a recent decline in revenue and net income for H1 2025 compared to the previous year, strategic moves like potential acquisitions could enhance future profitability and leverage opportunities within the private credit market.

• According our earnings growth report, there's an indication that Man Group might be ready to expand.
• Click here to discover the nuances of Man Group with our detailed financial health report.

Just Group (LSE:JUST)

Overview: Just Group plc offers retirement income products and services to individuals, homeowners, and corporate clients in the United Kingdom, with a market cap of £2.18 billion.

Operations: Revenue segments for the company include various retirement income products and services targeted at individuals, homeowners, and corporate clients within the UK market.

Estimated Discount To Fair Value: 27.6%

Just Group is trading at £2.1, below its estimated fair value of £2.9, indicating undervaluation based on cash flows. Earnings and revenue are projected to grow significantly faster than the UK market over the next few years, though recent profit margins have decreased from 6.3% to 3.2%. The acquisition by Brookfield Wealth Solutions for £2.3 billion may impact future valuations and strategic direction, pending regulatory approvals by mid-2026.

• Our earnings growth report unveils the potential for significant increases in Just Group's future results.
• Unlock comprehensive insights into our analysis of Just Group stock in this financial health report.

Where To Now?

• Explore the 23 names from our Undervalued UK Stocks Based On Cash Flows screener here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
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Searching for a Fresh Perspective?

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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.

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