Exploring UK Stocks With Intrinsic Value Discounts Ranging From 36.9% To 49.8%

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Recent performance of the UK stock market has been subdued, influenced by disappointing trade data from China and its ripple effects on global markets. The FTSE 100 and FTSE 250 indices both closed lower, reflecting concerns about international economic recovery. In this context, identifying stocks that appear undervalued relative to their intrinsic value could offer investors potential opportunities for long-term growth amidst current market uncertainties.

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)

£1.04

£1.98

47.5%

Gaming Realms (AIM:GMR)

£0.369

£0.69

46.3%

WPP (LSE:WPP)

£7.44

£14.16

47.5%

LSL Property Services (LSE:LSL)

£3.39

£6.39

46.9%

Loungers (AIM:LGRS)

£2.81

£5.50

48.9%

Accsys Technologies (AIM:AXS)

£0.55

£1.05

47.8%

Entain (LSE:ENT)

£6.442

£12.28

47.5%

Ricardo (LSE:RCDO)

£4.96

£9.43

47.4%

Nexxen International (AIM:NEXN)

£2.38

£4.74

49.8%

M&C Saatchi (AIM:SAA)

£2.07

£4.00

48.2%

Click here to see the full list of 62 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Nexxen International

Overview: Nexxen International Ltd. is a company based in Israel that offers a comprehensive software platform connecting advertisers with publishers, with a market capitalization of approximately £328.23 million.

Operations: The company generates $334.69 million from its marketing services segment.

Estimated Discount To Fair Value: 49.8%

Nexxen International Ltd., with a current trading price of £2.38, is significantly undervalued based on discounted cash flow analysis, suggesting a fair value of £4.74. Despite recent losses—£6.87 million in Q1 2024—the company's revenue is expected to grow by 7.8% annually, outpacing the UK market average of 3.5%. This growth is supported by strategic initiatives like the Nexxen Data Platform and partnerships aimed at enhancing data-driven consumer engagement, positioning Nexxen for profitability within three years amidst aggressive share buybacks totaling £19.99 million recently.

AIM:NEXN Discounted Cash Flow as at Jul 2024
AIM:NEXN Discounted Cash Flow as at Jul 2024

Energean

Overview: Energean plc is an oil and gas company focused on the exploration, production, and development of energy resources, with a market capitalization of approximately £1.94 billion.

Operations: The company's revenue primarily stems from its exploration and production activities in the oil and gas sector, totaling approximately $1.42 billion.