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The United Kingdom's stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices closing lower amid concerns over China's sluggish economic recovery and its impact on global trade. Despite these headwinds, opportunities may exist for investors seeking undervalued stocks that are trading below their intrinsic value, potentially offering growth potential in a turbulent market environment.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| National World (LSE:NWOR) | £0.227 | £0.42 | 46.5% |
| On the Beach Group (LSE:OTB) | £2.60 | £4.63 | 43.8% |
| Brickability Group (AIM:BRCK) | £0.588 | £1.04 | 43.7% |
| Gateley (Holdings) (AIM:GTLY) | £1.36 | £2.65 | 48.6% |
| Victrex (LSE:VCT) | £9.55 | £18.19 | 47.5% |
| Duke Capital (AIM:DUKE) | £0.302 | £0.53 | 43.4% |
| Deliveroo (LSE:ROO) | £1.39 | £2.45 | 43.2% |
| Nexxen International (AIM:NEXN) | £7.75 | £14.97 | 48.2% |
| Optima Health (AIM:OPT) | £1.73 | £3.31 | 47.7% |
| Melrose Industries (LSE:MRO) | £6.284 | £11.92 | 47.3% |
Below we spotlight a couple of our favorites from our exclusive screener.
Nexxen International
Overview: Nexxen International Ltd. offers a comprehensive software platform facilitating connections between advertisers and publishers, with a market cap of £500.27 million.
Operations: The company generates revenue from its marketing services, amounting to $349.11 million.
Estimated Discount To Fair Value: 48.2%
Nexxen International appears undervalued, trading at £7.75, significantly below its estimated fair value of £14.97. The company recently became profitable and forecasts suggest robust annual earnings growth of 38.72% over the next three years, outpacing the UK market average of 15%. Revenue is also expected to grow faster than the market at 9.2% annually. Recent strategic initiatives include launching Nexxen U for industry education and a $50 million share buyback program funded from existing cash reserves.
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Our growth report here indicates Nexxen International may be poised for an improving outlook.
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Take a closer look at Nexxen International's balance sheet health here in our report.
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 £451.13 million.
Operations: The company's revenue segments include Infrastructure (£87.79 million), Private Equity (£50.78 million), and Foresight Capital Management (£8.10 million).
Estimated Discount To Fair Value: 30.4%