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The UK stock market has been grappling with weak global cues, particularly influenced by faltering trade data from China, leading to declines in both the FTSE 100 and FTSE 250 indices. In such a challenging environment, identifying undervalued stocks can offer investors potential opportunities for growth; here we explore Restore and two other UK stocks that might be trading below their fair value estimates.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| TBC Bank Group (LSE:TBCG) | £30.45 | £58.86 | 48.3% |
| EnSilica (AIM:ENSI) | £0.43 | £0.81 | 47.1% |
| Liontrust Asset Management (LSE:LIO) | £6.34 | £12.28 | 48.4% |
| Gaming Realms (AIM:GMR) | £0.4025 | £0.76 | 47.3% |
| Topps Tiles (LSE:TPT) | £0.4685 | £0.9 | 47.9% |
| Marks Electrical Group (AIM:MRK) | £0.65 | £1.27 | 48.9% |
| C&C Group (LSE:CCR) | £1.544 | £3.00 | 48.6% |
| AstraZeneca (LSE:AZN) | £131.02 | £251.50 | 47.9% |
| Mercia Asset Management (AIM:MERC) | £0.35 | £0.68 | 48.2% |
| Franchise Brands (AIM:FRAN) | £1.82 | £3.61 | 49.6% |
Here we highlight a subset of our preferred stocks from the screener.
Restore
Overview: Restore plc, with a market cap of £366.27 million, offers office and workplace services to public and private sectors mainly in the United Kingdom through its subsidiaries.
Operations: The company's revenue segments include Secure Lifecycle Services generating £104.40 million and Digital & Information Management contributing £172.50 million.
Estimated Discount To Fair Value: 39.7%
Restore plc, trading at £2.68, is significantly undervalued with an estimated fair value of £4.43. The company reported a net income of £6.4 million for H1 2024, reversing a net loss from the previous year. Despite slower revenue growth forecasts (4.4% annually), earnings are expected to grow significantly at 48.7% per year, outpacing the UK market average of 14.3%. However, interest payments are not well covered by earnings and one-off items impact financial results.
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Our growth report here indicates Restore may be poised for an improving outlook.
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Take a closer look at Restore's balance sheet health here in our report.
C&C Group
Overview: C&C Group plc manufactures, markets, and distributes beer, cider, wine, spirits, and soft drinks in the Republic of Ireland, Great Britain, and internationally with a market cap of £594.62 million.
Operations: Revenue segments (in millions of €): Ireland: €286.30, Great Britain: €1.37 billion
Estimated Discount To Fair Value: 48.6%
C&C Group is trading at £1.54, significantly below its estimated fair value of £3. Despite a net loss of €113.5 million for FY2024, earnings are forecast to grow 77.21% annually, and the company is expected to become profitable within three years. Recent investor activism has led to board changes and strategic reviews aimed at enhancing shareholder value, including a potential sale that could offer a substantial premium over the current share price.