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Over the last 7 days, the United Kingdom market has remained flat, yet it boasts a 7.8% increase over the past year with earnings forecasted to grow by 15% annually. In this context of steady growth and potential, identifying stocks that are trading below their intrinsic value can offer investors opportunities for significant returns.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| TBC Bank Group (LSE:TBCG) | £30.65 | £59.35 | 48.4% |
| Gaming Realms (AIM:GMR) | £0.37 | £0.72 | 48.3% |
| Fevertree Drinks (AIM:FEVR) | £7.29 | £13.12 | 44.5% |
| Brickability Group (AIM:BRCK) | £0.659 | £1.25 | 47.1% |
| GlobalData (AIM:DATA) | £1.98 | £3.74 | 47% |
| Tracsis (AIM:TRCS) | £5.30 | £9.72 | 45.5% |
| Vp (LSE:VP.) | £5.50 | £9.79 | 43.8% |
| Informa (LSE:INF) | £8.448 | £15.72 | 46.3% |
| Videndum (LSE:VID) | £2.45 | £4.61 | 46.8% |
| St. James's Place (LSE:STJ) | £8.55 | £15.95 | 46.4% |
Let's review some notable picks from our screened stocks.
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 £298.02 million.
Operations: The company's revenue is derived from property investment and development (£170.56 million), construction (£87.90 million), and land promotion (£28.37 million) in the United Kingdom.
Estimated Discount To Fair Value: 24.1%
Henry Boot appears undervalued with its stock trading at £2.23, below the estimated fair value of £2.94, indicating potential upside based on discounted cash flow analysis. Despite a significant drop in sales and net income for H1 2024, earnings are expected to grow significantly by 25.48% annually over the next three years, outpacing UK market growth rates. However, its dividend yield of 3.35% isn't well covered by free cash flows, posing sustainability concerns.
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Unlock comprehensive insights into our analysis of Henry Boot stock in this financial health report.
Foxtons Group
Overview: Foxtons Group plc is an estate agency offering services to the residential property market in the United Kingdom, with a market cap of £203.62 million.
Operations: The company generates revenue through three main segments: Sales (£41.84 million), Lettings (£103.78 million), and Financial Services (£9.10 million).
Estimated Discount To Fair Value: 38.6%
Foxtons Group is trading at £0.67, significantly below its estimated fair value of £1.09, suggesting it could be undervalued based on discounted cash flow analysis. Earnings are forecast to grow robustly at 33.2% annually, outpacing the UK market's growth rate of 14.9%. However, profit margins have decreased from 7.4% to 4.7% over the past year, and its future return on equity is anticipated to remain modest at 10.6%.