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The United Kingdom's stock market has recently been under pressure, with the FTSE 100 index closing lower due to weak trade data from China, highlighting concerns over global economic recovery. In such a challenging environment, identifying undervalued stocks can be crucial for investors seeking potential opportunities at a discount.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
Name | Current Price | Fair Value (Est) | Discount (Est) |
GlobalData (AIM:DATA) | £2.005 | £3.72 | 46.1% |
Franchise Brands (AIM:FRAN) | £1.44 | £2.63 | 45.2% |
Informa (LSE:INF) | £8.16 | £16.18 | 49.6% |
CAB Payments Holdings (LSE:CABP) | £1.15 | £2.23 | 48.4% |
Redcentric (AIM:RCN) | £1.2875 | £2.42 | 46.8% |
Mpac Group (AIM:MPAC) | £4.70 | £9.05 | 48% |
Videndum (LSE:VID) | £2.475 | £4.55 | 45.6% |
Foxtons Group (LSE:FOXT) | £0.632 | £1.20 | 47.4% |
SysGroup (AIM:SYS) | £0.325 | £0.65 | 49.9% |
Genel Energy (LSE:GENL) | £0.776 | £1.51 | 48.4% |
Let's uncover some gems from our specialized screener.
CAB Payments Holdings
Overview: CAB Payments Holdings Limited, with a market cap of £292.26 million, offers foreign exchange and cross-border payment services to banks, fintech companies, development organizations, and governments in the UK and internationally through its subsidiaries.
Operations: CAB Payments Holdings Limited generates revenue by providing FX and cross-border payment services to a diverse clientele, including banks, fintech firms, development organizations, and governments both domestically and globally.
Estimated Discount To Fair Value: 48.4%
CAB Payments Holdings appears significantly undervalued, trading at £1.15 compared to an estimated fair value of £2.23, suggesting a 48.4% discount. Despite recent revenue and net income declines, the company's forecasted annual earnings growth of 27.45% and revenue growth of 21.4% outpace the UK market averages. However, profit margins have decreased substantially from last year, and share price volatility remains high due to large one-off items impacting financial results.
Informa
Overview: Informa plc is an international company specializing in events, digital services, and academic research, with operations in the UK, Continental Europe, the US, China, and beyond; it has a market cap of approximately £10.78 billion.
Operations: The company generates revenue through its segments: Informa Tech (£426.70 million), Informa Connect (£630.20 million), Informa Markets (£1.67 billion), and Taylor & Francis (£636.70 million).