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As the United Kingdom's FTSE 100 index faces downward pressure due to weak trade data from China, investors are closely monitoring market conditions and global economic influences. In such a climate, identifying stocks that may be undervalued can offer potential opportunities for those looking to navigate these challenging times effectively.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| ASA International Group (LSE:ASAI) | £0.79 | £1.51 | 47.8% |
| Savills (LSE:SVS) | £8.79 | £16.05 | 45.2% |
| Gooch & Housego (AIM:GHH) | £3.70 | £7.21 | 48.7% |
| Deliveroo (LSE:ROO) | £1.131 | £2.25 | 49.8% |
| Franchise Brands (AIM:FRAN) | £1.35 | £2.48 | 45.6% |
| Watches of Switzerland Group (LSE:WOSG) | £3.276 | £6.03 | 45.7% |
| Vanquis Banking Group (LSE:VANQ) | £0.541 | £1.02 | 46.9% |
| CVS Group (AIM:CVSG) | £9.22 | £18.31 | 49.6% |
| Fintel (AIM:FNTL) | £2.16 | £4.23 | 48.9% |
| Optima Health (AIM:OPT) | £1.61 | £3.07 | 47.6% |
Let's uncover some gems from our specialized screener.
GB Group
Overview: GB Group plc, with a market cap of £614 million, offers identity data intelligence products and services across the United Kingdom, the United States, Australia, and other international markets.
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: 38.7%
GB Group, trading at £2.44, is significantly undervalued based on discounted cash flow analysis with a fair value estimate of £3.98. Despite recent one-off items impacting results, the company has turned profitable and is expected to see substantial earnings growth of 38.9% annually over the next three years, outpacing UK market averages. However, its forecasted return on equity remains low at 3.7%. Revenue growth is projected at 6.8% per year, above the UK market rate.
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According our earnings growth report, there's an indication that GB Group might be ready to expand.
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Navigate through the intricacies of GB Group with our comprehensive financial health report here.
Applied Nutrition
Overview: Applied Nutrition Plc manufactures, wholesales, and retails sports nutritional products in the United Kingdom and internationally, with a market cap of £280 million.
Operations: Applied Nutrition Plc generates revenue through the manufacture, wholesale, and retail of sports nutritional products both domestically and internationally.
Estimated Discount To Fair Value: 43.4%
Applied Nutrition, trading at £1.12, is considerably undervalued with a fair value estimate of £1.98 based on discounted cash flow analysis. Despite a recent dip in net income to £8.9 million for the half year ending January 2025, the company's earnings are projected to grow annually by 15.7%, outpacing the UK market average of 14%. Revenue growth is forecast at 11.9% per year, also exceeding market expectations.