3 UK Stocks That May Be Priced Below Intrinsic Value In November 2024

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The United Kingdom's stock market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China, highlighting the global interconnectedness of economies. In such a climate, identifying stocks that may be priced below their intrinsic value becomes crucial for investors seeking potential opportunities amidst broader market uncertainties.

Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom

Name

Current Price

Fair Value (Est)

Discount (Est)

ConvaTec Group (LSE:CTEC)

£2.154

£3.91

44.9%

Gaming Realms (AIM:GMR)

£0.375

£0.74

49%

GlobalData (AIM:DATA)

£2.02

£3.75

46.1%

Informa (LSE:INF)

£8.146

£15.46

47.3%

Redcentric (AIM:RCN)

£1.20

£2.39

49.8%

Mpac Group (AIM:MPAC)

£4.90

£8.98

45.4%

Quartix Technologies (AIM:QTX)

£1.665

£3.08

45.9%

Foxtons Group (LSE:FOXT)

£0.584

£1.06

44.7%

Auction Technology Group (LSE:ATG)

£4.69

£8.44

44.5%

Genel Energy (LSE:GENL)

£0.754

£1.45

48%

Click here to see the full list of 56 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

GB Group

Overview: GB Group plc, along with its subsidiaries, offers identity data intelligence products and services across the United Kingdom, the United States, Australia, and other international markets; it has a market cap of £865.76 million.

Operations: The company's revenue is derived from three main segments: Fraud (£40.20 million), Identity (£156.06 million), and Location (£81.07 million).

Estimated Discount To Fair Value: 30.2%

GB Group is trading at £3.43, below its estimated fair value of £4.92, indicating it may be undervalued based on cash flows. Analysts expect revenue to grow by 6.1% annually, outpacing the UK market's 3.6%. The company's earnings are forecast to grow significantly at 90.56% per year and become profitable within three years, although return on equity remains low at 3.4%. Recent announcements include upcoming sales results for October 2024.

AIM:GBG Discounted Cash Flow as at Nov 2024
AIM:GBG Discounted Cash Flow as at Nov 2024

Tracsis

Overview: Tracsis plc, along with its subsidiaries, offers software and hardware solutions as well as data analytics/GIS services for the rail, traffic data, and transportation industries, with a market cap of £195.77 million.

Operations: The company generates revenue from two main segments: Rail Technology & Services, contributing £34.59 million, and Data, Analytics, Consultancy & Events, contributing £44.80 million.

Estimated Discount To Fair Value: 35.1%