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The United Kingdom's FTSE 100 index has recently experienced a downturn, influenced by weak trade data from China, highlighting the interconnectedness of global markets and the challenges faced by economies attempting to recover post-pandemic. Amid these conditions, investors may find opportunities in stocks that are trading below their intrinsic value, offering potential for growth if market sentiments shift favorably.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| On the Beach Group (LSE:OTB) | £2.275 | £4.47 | 49.1% |
| Dr. Martens (LSE:DOCS) | £0.656 | £1.22 | 46.4% |
| Gaming Realms (AIM:GMR) | £0.365 | £0.67 | 45.7% |
| Legal & General Group (LSE:LGEN) | £2.46 | £4.87 | 49.5% |
| Victrex (LSE:VCT) | £9.24 | £18.16 | 49.1% |
| Deliveroo (LSE:ROO) | £1.35 | £2.46 | 45.2% |
| Likewise Group (AIM:LIKE) | £0.195 | £0.37 | 47.5% |
| Calnex Solutions (AIM:CLX) | £0.555 | £1.01 | 45.2% |
| Optima Health (AIM:OPT) | £1.82 | £3.34 | 45.4% |
| Melrose Industries (LSE:MRO) | £6.55 | £12.22 | 46.4% |
Below we spotlight a couple of our favorites from our exclusive screener.
Fintel
Overview: Fintel Plc provides intermediary services and distribution channels to the retail financial services sector in the United Kingdom, with a market cap of £287.57 million.
Operations: The company's revenue segments include Research & Fintech (£24.20 million), Distribution Channels (£21.40 million), and Intermediary Services (£23.30 million).
Estimated Discount To Fair Value: 33.8%
Fintel appears undervalued, trading at £2.76 compared to a fair value estimate of £4.17, with earnings expected to grow significantly at 31.7% annually over the next three years, outpacing the UK market's 14%. Revenue growth is forecasted at 7.5%, above the market average but below high-growth thresholds. Recent executive changes include Neil Stevens stepping down as Joint CEO by June 2025, with Matt Timmins assuming sole CEO responsibilities post-AGM in May 2025.
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According our earnings growth report, there's an indication that Fintel might be ready to expand.
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Take a closer look at Fintel's balance sheet health here in our report.
Hochschild Mining
Overview: Hochschild Mining plc is a precious metals company involved in the exploration, mining, processing, and sale of gold and silver across Peru, Argentina, the United States, Canada, Brazil, and Chile with a market cap of £944.55 million.
Operations: The company's revenue segments include $266.70 million from San Jose and $451.91 million from Inmaculada, with a segment adjustment of $79.60 million.