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The United Kingdom's stock market has recently faced challenges, as evidenced by the FTSE 100 and FTSE 250 indices closing lower amid weak trade data from China, impacting companies with significant ties to the Chinese economy. In such volatile conditions, identifying undervalued stocks can be a strategic approach for investors seeking opportunities that may offer potential value relative to their current market prices.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Fevertree Drinks (AIM:FEVR) | £6.74 | £13.12 | 48.6% |
| Brickability Group (AIM:BRCK) | £0.64 | £1.27 | 49.5% |
| Bellway (LSE:BWY) | £24.92 | £48.46 | 48.6% |
| GlobalData (AIM:DATA) | £1.89 | £3.74 | 49.4% |
| Zotefoams (LSE:ZTF) | £3.15 | £5.83 | 45.9% |
| Tracsis (AIM:TRCS) | £5.00 | £9.78 | 48.9% |
| Duke Capital (AIM:DUKE) | £0.306 | £0.58 | 47.4% |
| Vp (LSE:VP.) | £5.625 | £10.14 | 44.5% |
| Victrex (LSE:VCT) | £10.76 | £19.87 | 45.8% |
| Quartix Technologies (AIM:QTX) | £1.56 | £3.07 | 49.2% |
We're going to check out a few of the best picks from our screener tool.
Coats Group
Overview: Coats Group plc, with a market cap of £1.50 billion, manufactures and supplies industrial sewing threads globally through its subsidiaries.
Operations: Coats Group generates revenue from its segments, including Apparel ($731 million), Footwear ($381.90 million), and Performance Materials ($327 million).
Estimated Discount To Fair Value: 30.2%
Coats Group is trading at £0.94, below its estimated fair value of £1.35, making it potentially undervalued based on cash flows. The company's recent revenue growth of 11% highlights strong performance in Footwear and Apparel segments despite weaknesses in Performance Materials. Analysts agree on a potential stock price rise of 29.1%. However, Coats carries a high level of debt and has an unstable dividend track record, which investors should consider carefully.
Savills
Overview: Savills plc, along with its subsidiaries, provides real estate services across the United Kingdom, Continental Europe, the Asia Pacific, Africa, North America, and the Middle East with a market cap of £1.40 billion.
Operations: The company's revenue segments include Consultancy (£464.80 million), Transaction Advisory (£803.60 million), Investment Management (£100.50 million), and Property and Facilities Management (£920.90 million).