In This Article:
As the UK economy shows signs of recovery and investors digest recent GDP figures, the FTSE 100's positive trajectory reflects a cautiously optimistic outlook in London's financial markets. In such an environment, identifying stocks that appear undervalued relative to their intrinsic worth could offer potential opportunities for investors seeking value in a recovering market.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
Name | Current Price | Fair Value (Est) | Discount (Est) |
Kier Group (LSE:KIE) | £1.45 | £2.82 | 48.6% |
WPP (LSE:WPP) | £7.272 | £14.01 | 48.1% |
LSL Property Services (LSE:LSL) | £3.29 | £6.49 | 49.3% |
Auction Technology Group (LSE:ATG) | £4.77 | £9.22 | 48.2% |
Loungers (AIM:LGRS) | £2.86 | £5.55 | 48.5% |
Velocity Composites (AIM:VEL) | £0.415 | £0.80 | 48.4% |
Accsys Technologies (AIM:AXS) | £0.55 | £1.07 | 48.4% |
Ricardo (LSE:RCDO) | £4.93 | £9.51 | 48.2% |
Hostelworld Group (LSE:HSW) | £1.53 | £2.93 | 47.7% |
M&C Saatchi (AIM:SAA) | £2.05 | £3.98 | 48.5% |
Below we spotlight a couple of our favorites from our exclusive screener.
AstraZeneca
Overview: AstraZeneca PLC is a biopharmaceutical company engaged in the discovery, development, manufacture, and commercialization of prescription medicines, with a market capitalization of approximately £187.24 billion.
Operations: The company's revenue from biopharmaceuticals totaled $47.61 billion.
Estimated Discount To Fair Value: 39.2%
AstraZeneca, a prominent player in the pharmaceutical industry, demonstrates potential underappreciation based on its cash flow metrics relative to market valuation. Recent strategic developments include a partnership with Aptamer Group plc to enhance siRNA delivery technologies, potentially boosting AstraZeneca's competitive edge in biotechnology. Moreover, regulatory advancements for its oncology products like Imfinzi and Lynparza in the EU could promise future revenue streams. However, investors should consider the inherent risks of drug development and market acceptance. These factors collectively suggest that AstraZeneca's current market pricing may not fully reflect its future cash flow generation capabilities from these innovations and approvals.
Gym Group
Overview: The Gym Group plc operates a chain of fitness centers across the United Kingdom and has a market capitalization of approximately £237.66 million.