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As the United Kingdom's FTSE 100 index experiences fluctuations due to weak trade data from China and global economic pressures, investors are keenly observing opportunities within the market. In such a climate, identifying stocks that may be undervalued can offer potential for growth, especially when these companies demonstrate resilience amidst broader market challenges.
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) | £2.52 | £4.59 | 45.1% |
| Brickability Group (AIM:BRCK) | £0.576 | £1.04 | 44.6% |
| Gateley (Holdings) (AIM:GTLY) | £1.375 | £2.64 | 48% |
| Victrex (LSE:VCT) | £9.80 | £18.20 | 46.1% |
| Duke Capital (AIM:DUKE) | £0.3025 | £0.54 | 43.9% |
| Deliveroo (LSE:ROO) | £1.405 | £2.43 | 42.2% |
| Likewise Group (AIM:LIKE) | £0.185 | £0.37 | 49.8% |
| Nexxen International (AIM:NEXN) | £8.06 | £15.33 | 47.4% |
| Optima Health (AIM:OPT) | £1.75 | £3.30 | 47% |
| Melrose Industries (LSE:MRO) | £6.486 | £11.86 | 45.3% |
Let's take a closer look at a couple of our picks from the screened companies.
Victorian Plumbing Group
Overview: Victorian Plumbing Group plc is an online retailer specializing in bathroom products and accessories for both B2C and trade customers in the United Kingdom, with a market cap of £322.66 million.
Operations: The company's revenue primarily comes from its online retail segment, which generated £295.70 million.
Estimated Discount To Fair Value: 21.4%
Victorian Plumbing Group is trading 21.4% below its estimated fair value of £1.26, with a current price of £0.99, suggesting it may be undervalued based on cash flows. Despite a decline in net profit margin from 4.1% to 1.9%, the company forecasts significant earnings growth at 37.6% annually over the next three years, outpacing the UK market's average growth rate of 14.9%. The board prioritizes cash preservation for warehouse transformation without incurring debt, enhancing balance sheet robustness.
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 £202.40 million.
Operations: The company's revenue is derived from three main segments: Sales (£41.84 million), Lettings (£103.78 million), and Financial Services (£9.10 million).
Estimated Discount To Fair Value: 21.6%