In This Article:
The United Kingdom's FTSE 100 index has recently experienced declines, influenced by weak trade data from China and falling commodity prices. In such a fluctuating market, identifying undervalued stocks can be crucial for investors looking to capitalize on potential growth opportunities.
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) | £30.95 | £58.03 | 46.7% |
| Integrated Diagnostics Holdings (LSE:IDHC) | US$0.384 | US$0.73 | 47.1% |
| EnSilica (AIM:ENSI) | £0.425 | £0.81 | 47.6% |
| Liontrust Asset Management (LSE:LIO) | £6.28 | £12.27 | 48.8% |
| Topps Tiles (LSE:TPT) | £0.48 | £0.91 | 47.1% |
| C&C Group (LSE:CCR) | £1.58 | £2.99 | 47.1% |
| AstraZeneca (LSE:AZN) | £132.00 | £248.62 | 46.9% |
| Foxtons Group (LSE:FOXT) | £0.642 | £1.20 | 46.6% |
| Tortilla Mexican Grill (AIM:MEX) | £0.51 | £1.01 | 49.4% |
| Franchise Brands (AIM:FRAN) | £1.87 | £3.61 | 48.2% |
We're going to check out a few of the best picks from our screener tool.
Redcentric
Overview: Redcentric plc, with a market cap of £217.39 million, provides IT managed services for both public and private sectors in the United Kingdom.
Operations: The company generates £163.15 million from providing managed services to customers in the United Kingdom.
Estimated Discount To Fair Value: 44.6%
Redcentric, trading at £1.37, is significantly undervalued compared to its estimated fair value of £2.48. The company's earnings have grown 1.9% annually over the past five years and are forecast to grow 63.79% per year, with revenue expected to increase by 4.9% annually, outpacing the UK market's growth rate of 3.7%. Despite reporting a net loss of £3.44 million for the year ended March 31, 2024, Redcentric's financial outlook remains positive as it is expected to become profitable within three years and achieve a high return on equity (23.8%).
AstraZeneca
Overview: AstraZeneca PLC is a biopharmaceutical company that focuses on the discovery, development, manufacture, and commercialization of prescription medicines, with a market cap of £204.64 billion.
Operations: AstraZeneca generates $49.13 billion in revenue from its biopharmaceuticals segment.
Estimated Discount To Fair Value: 46.9%
AstraZeneca, trading at £132, is significantly undervalued with an estimated fair value of £248.62. Despite a high level of debt, the company has demonstrated strong earnings growth of 4.5% over the past year and is forecasted to grow by 16.6% annually, outpacing the UK market's growth rate. Recent FDA approval for Imfinzi in treating early-stage NSCLC enhances its revenue prospects further solidifying its financial position amidst ongoing legal challenges related to patent infringement cases.