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The United Kingdom's stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines amid weak trade data from China, highlighting global economic uncertainties. In such a climate, identifying stocks that may be trading below their estimated value can offer potential opportunities for investors seeking to navigate these turbulent times effectively.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
Name | Current Price | Fair Value (Est) | Discount (Est) |
On the Beach Group (LSE:OTB) | £1.546 | £3.09 | 50% |
AstraZeneca (LSE:AZN) | £119.46 | £237.51 | 49.7% |
S&U (LSE:SUS) | £19.20 | £36.51 | 47.4% |
Watches of Switzerland Group (LSE:WOSG) | £4.50 | £8.51 | 47.1% |
Redcentric (AIM:RCN) | £1.20 | £2.39 | 49.8% |
Gulf Keystone Petroleum (LSE:GKP) | £1.271 | £2.47 | 48.6% |
Ferrexpo (LSE:FXPO) | £0.528 | £0.98 | 45.9% |
Foxtons Group (LSE:FOXT) | £0.618 | £1.19 | 48.2% |
St. James's Place (LSE:STJ) | £8.76 | £16.38 | 46.5% |
Genel Energy (LSE:GENL) | £0.803 | £1.53 | 47.5% |
Here's a peek at a few of the choices from the screener.
Victorian Plumbing Group
Overview: Victorian Plumbing Group plc is an online retailer specializing in bathroom products and accessories in the United Kingdom, with a market capitalization of £359.90 million.
Operations: The company generates revenue of £282.90 million from its online retail operations focused on bathroom products and accessories in the UK.
Estimated Discount To Fair Value: 43.8%
Victorian Plumbing Group appears undervalued based on discounted cash flow analysis, trading at £1.11, significantly below the estimated fair value of £1.97. Despite recent insider selling, the company's earnings are forecast to grow at a robust 36.2% annually, outpacing the UK market's growth rate of 14.1%. The stock is priced attractively at 43.8% below its fair value estimate, with anticipated revenue growth of 9.9% per year exceeding market expectations.
AstraZeneca
Overview: AstraZeneca PLC is a biopharmaceutical company that specializes in the discovery, development, manufacture, and commercialization of prescription medicines, with a market cap of approximately £185.20 billion.
Operations: The company's revenue primarily comes from its biopharmaceuticals segment, which generated $49.13 billion.
Estimated Discount To Fair Value: 49.7%