3 UK Stocks That May Be Undervalued Based On Current Estimates In November 2024
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The United Kingdom's stock market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China, highlighting concerns over global economic recovery. As these broader market pressures persist, investors may find opportunities in stocks that appear undervalued based on current estimates and have potential resilience against such economic headwinds.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Gaming Realms (AIM:GMR) | ￡0.372 | ￡0.74 | 49.5% |
| Fevertree Drinks (AIM:FEVR) | ￡7.125 | ￡12.90 | 44.8% |
| ConvaTec Group (LSE:CTEC) | ￡2.144 | ￡3.88 | 44.8% |
| GlobalData (AIM:DATA) | ￡1.98 | ￡3.75 | 47.2% |
| On the Beach Group (LSE:OTB) | ￡1.534 | ￡3.07 | 50% |
| Informa (LSE:INF) | ￡8.13 | ￡15.48 | 47.5% |
| Auction Technology Group (LSE:ATG) | ￡4.52 | ￡8.35 | 45.9% |
| Foxtons Group (LSE:FOXT) | ￡0.58 | ￡1.05 | 45% |
| Quartix Technologies (AIM:QTX) | ￡1.70 | ￡3.08 | 44.8% |
| Genel Energy (LSE:GENL) | ￡0.794 | ￡1.46 | 45.7% |
We'll examine a selection from our screener results.
Henry Boot
Overview: Henry Boot PLC operates in the United Kingdom, focusing on property investment and development, land promotion, and construction activities, with a market cap of ￡307.37 million.
Operations: The company's revenue segments include ￡87.90 million from construction, ￡28.37 million from land promotion, and ￡170.56 million from property investment and development in the United Kingdom.
Estimated Discount To Fair Value: 22.2%
Henry Boot is trading at ￡2.3, 22.2% below its estimated fair value of ￡2.96, indicating it may be undervalued based on cash flows. Despite a significant dip in recent earnings—sales fell to ￡106.05 million from ￡179.76 million—the company expects revenue growth of 10.7% annually, outpacing the UK market's 3.6%. However, its dividend yield of 3.25% isn't well covered by free cash flows and return on equity is forecasted low at 5.8%.
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The growth report we've compiled suggests that Henry Boot's future prospects could be on the up.
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Unlock comprehensive insights into our analysis of Henry Boot stock in this financial health report.
On the Beach Group
Overview: On the Beach Group plc is an online retailer specializing in short-haul beach holidays in the United Kingdom, with a market cap of ￡256.16 million.
Operations: The company's revenue segments include ￡7.10 million from Classic Package Holidays, ￡56.40 million from Classic Collection Holidays, and ￡114.60 million from OTB (Onthebeach.Co.Uk and Sunshine.Co.Uk).
Estimated Discount To Fair Value: 50%