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The UK stock market has recently experienced some turbulence, with the FTSE 100 index closing lower amid concerns over weak trade data from China and its impact on global demand. As investors navigate these challenging conditions, identifying stocks that are trading below their intrinsic value can offer potential opportunities for long-term growth.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Gooch & Housego (AIM:GHH) | £3.73 | £7.16 | 47.9% |
| NIOX Group (AIM:NIOX) | £0.614 | £1.10 | 44.3% |
| Aptitude Software Group (LSE:APTD) | £2.90 | £5.18 | 44.1% |
| On the Beach Group (LSE:OTB) | £2.64 | £4.80 | 45% |
| Trainline (LSE:TRN) | £2.88 | £5.19 | 44.5% |
| Franchise Brands (AIM:FRAN) | £1.37 | £2.46 | 44.4% |
| Deliveroo (LSE:ROO) | £1.40 | £2.68 | 47.7% |
| Kromek Group (AIM:KMK) | £0.051 | £0.10 | 49.8% |
| Ibstock (LSE:IBST) | £1.758 | £3.26 | 46.1% |
| CVS Group (AIM:CVSG) | £10.16 | £18.64 | 45.5% |
Underneath we present a selection of stocks filtered out by our screen.
Judges Scientific
Overview: Judges Scientific plc designs, manufactures, and sells scientific instruments and services with a market cap of £398.67 million.
Operations: The company's revenue is derived from its Vacuum segment, contributing £69 million, and Materials Sciences segment, adding £64.60 million.
Estimated Discount To Fair Value: 14.4%
Judges Scientific is trading 14.4% below its estimated fair value of £70.11, with earnings expected to grow significantly at 24.4% annually, outpacing the UK market's 13.8%. Despite a slight decline in sales to £133.6 million for 2024, net income rose to £10.4 million from £9.5 million previously, demonstrating robust cash flow management and profitability improvements, further supported by a proposed dividend increase of 10%, pending shareholder approval in May 2025.
Foresight Group Holdings
Overview: Foresight Group Holdings Limited is an infrastructure and private equity manager operating in the United Kingdom, Italy, Luxembourg, Ireland, Spain, and Australia with a market cap of £417.56 million.
Operations: The company's revenue is derived from three main segments: Infrastructure (£87.79 million), Private Equity (£50.78 million), and Foresight Capital Management (£8.10 million).
Estimated Discount To Fair Value: 40.4%
Foresight Group Holdings is trading at £3.7, significantly below its estimated fair value of £6.2, suggesting it is undervalued based on cash flows. The company has announced a £50 million share repurchase program, enhancing shareholder value through strategic use of cash resources. With earnings forecast to grow 26.32% annually and a very high return on equity projected in three years, Foresight's financial outlook appears robust despite slower revenue growth compared to earnings expansion.