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As the FTSE 100 and FTSE 250 indices face downward pressure due to weak trade data from China, investors in the United Kingdom are navigating a challenging market environment. In such conditions, identifying undervalued stocks can be crucial, as they may offer potential value opportunities despite broader economic uncertainties.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Gaming Realms (AIM:GMR) | £0.37 | £0.73 | 49.1% |
| Fevertree Drinks (AIM:FEVR) | £7.10 | £13.12 | 45.9% |
| GlobalData (AIM:DATA) | £2.02 | £3.71 | 45.6% |
| Barratt Redrow (LSE:BTRW) | £4.29 | £7.35 | 41.6% |
| On the Beach Group (LSE:OTB) | £1.716 | £3.01 | 42.9% |
| Informa (LSE:INF) | £8.596 | £15.41 | 44.2% |
| Videndum (LSE:VID) | £2.54 | £4.61 | 44.9% |
| Foxtons Group (LSE:FOXT) | £0.60 | £1.03 | 41.9% |
| St. James's Place (LSE:STJ) | £9.035 | £16.34 | 44.7% |
| Genel Energy (LSE:GENL) | £0.881 | £1.58 | 44.1% |
Here we highlight a subset of our preferred stocks from the screener.
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 internationally, with a market cap of £958.55 million.
Operations: The company's revenue segments include £38.14 million from fraud solutions, £159.78 million from identity services, and £83.94 million from location-based offerings.
Estimated Discount To Fair Value: 20.8%
GB Group plc's recent earnings report shows a return to profitability with net income of £1.58 million, contrasting last year's loss. The stock is currently trading at approximately 20.8% below its estimated fair value of £4.8, highlighting potential undervaluation based on cash flows. Despite low forecasted Return on Equity, projected earnings growth of 36.6% annually outpaces the UK market average, while revenue growth is also expected to exceed market rates at 6.9%.
Tristel
Overview: Tristel plc develops, manufactures, and sells infection prevention products in the United Kingdom, Australia, Germany, Western Europe, and internationally with a market cap of £200.31 million.
Operations: The company's revenue is primarily derived from Hospital Medical Device Decontamination (£36.34 million) and Hospital Environmental Surface Disinfection (£3.44 million).
Estimated Discount To Fair Value: 10.6%