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In recent days, the UK market has experienced turbulence, with the FTSE 100 index closing lower due to weak trade data from China, highlighting global economic challenges. As investors navigate these uncertain times, identifying stocks that may be undervalued could present opportunities for those looking to capitalize on potential market mispricings.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Begbies Traynor Group (AIM:BEG) | £0.922 | £1.70 | 45.8% |
| National World (LSE:NWOR) | £0.227 | £0.45 | 49.5% |
| On the Beach Group (LSE:OTB) | £2.495 | £4.94 | 49.5% |
| Brickability Group (AIM:BRCK) | £0.58 | £1.11 | 47.6% |
| AstraZeneca (LSE:AZN) | £116.24 | £219.85 | 47.1% |
| Gaming Realms (AIM:GMR) | £0.396 | £0.72 | 44.7% |
| GlobalData (AIM:DATA) | £2.01 | £3.56 | 43.5% |
| Duke Capital (AIM:DUKE) | £0.298 | £0.57 | 47.8% |
| Deliveroo (LSE:ROO) | £1.391 | £2.61 | 46.7% |
| Andrada Mining (AIM:ATM) | £0.024 | £0.047 | 49.2% |
Here we highlight a subset of our preferred stocks from the screener.
Judges Scientific
Overview: Judges Scientific plc designs, manufactures, and sells scientific instruments with a market cap of £474.27 million.
Operations: The company generates revenue from its Vacuum segment, which accounts for £65.40 million, and its Materials Sciences segment, contributing £70.20 million.
Estimated Discount To Fair Value: 30.2%
Judges Scientific appears undervalued, trading at £71.4 against a fair value estimate of £102.33, suggesting potential for appreciation. Despite high debt levels and significant one-off items affecting results, earnings are projected to grow significantly by 23.73% annually over the next three years, outpacing the UK market's growth rate of 14.8%. Recent board changes see Ralph Elman assuming the role of Non-Executive Chair in January 2025, potentially impacting strategic direction.
AstraZeneca
Overview: AstraZeneca PLC is a biopharmaceutical company engaged in the discovery, development, manufacture, and commercialization of prescription medicines, with a market cap of approximately £180.24 billion.
Operations: The company generates its revenue primarily from the biopharmaceuticals segment, which accounts for $54.07 billion.
Estimated Discount To Fair Value: 47.1%
AstraZeneca is trading at £116.24, significantly below its estimated fair value of £219.85, highlighting potential undervaluation based on cash flows. Despite a high debt level and an unstable dividend track record, the company's earnings are forecast to grow 16.65% annually, surpassing the UK market's growth rate of 14.8%. Recent positive guidance for revenue and EPS growth in 2025 reinforces its strong financial position amidst ongoing strategic developments in oncology treatments.