In This Article:
The United Kingdom's FTSE 100 index has recently faced challenges, closing lower amid weak trade data from China, which has affected global markets and companies with significant ties to the Chinese economy. In this environment of fluctuating indices and economic uncertainty, identifying undervalued stocks can be an attractive strategy for investors seeking opportunities at potentially discounted prices.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Eurocell (LSE:ECEL) | £1.50 | £2.94 | 49% |
| On the Beach Group (LSE:OTB) | £2.31 | £4.60 | 49.8% |
| Pan African Resources (AIM:PAF) | £0.383 | £0.76 | 49.3% |
| Gaming Realms (AIM:GMR) | £0.355 | £0.66 | 46.3% |
| GlobalData (AIM:DATA) | £1.83 | £3.37 | 45.8% |
| Likewise Group (AIM:LIKE) | £0.195 | £0.37 | 47.3% |
| Ibstock (LSE:IBST) | £1.694 | £3.07 | 44.9% |
| Kromek Group (AIM:KMK) | £0.059 | £0.11 | 48.4% |
| Optima Health (AIM:OPT) | £1.82 | £3.34 | 45.6% |
| Savannah Energy (AIM:SAVE) | £0.103 | £0.20 | 49.5% |
We'll examine a selection from our screener results.
GB Group
Overview: GB Group plc, operating with a market cap of £771.48 million, offers identity data intelligence products and services across the United Kingdom, the United States, Australia, and internationally.
Operations: The company's revenue is derived from three primary segments: Fraud (£38.14 million), Identity (£159.78 million), and Location (£83.94 million).
Estimated Discount To Fair Value: 27.2%
GB Group is trading at £3.06, below its estimated fair value of £4.2, indicating it is undervalued based on cash flows. Analysts agree the stock price could rise by 40.2%. Despite a low forecasted return on equity of 3.7%, earnings are expected to grow significantly at 38.9% annually, outpacing the UK market's growth rate of 14.2%. Revenue growth is projected at 6.8% per year, higher than the UK's average of 3.8%.
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The analysis detailed in our GB Group growth report hints at robust future financial performance.
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Click to explore a detailed breakdown of our findings in GB Group's balance sheet health report.
Gym Group
Overview: The Gym Group plc operates a network of gym facilities under the Gym Group brand name in the United Kingdom, with a market cap of approximately £232.34 million.
Operations: The company's revenue primarily comes from the provision of high-quality health and fitness facilities, amounting to £216.30 million.
Estimated Discount To Fair Value: 16.5%
Gym Group is trading at £1.3, below its estimated fair value of £1.56, suggesting it is undervalued based on cash flows. Analysts project the stock price could rise by 47.9%. Despite a low forecasted return on equity of 4.1%, the company is expected to become profitable within three years with earnings growing significantly at 95.14% annually, and revenue growth outpacing the UK market at 8.4% per year.