June 2024 Insight Into Three UK Stocks Possibly Priced Below Their Estimated Value

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As the FTSE 100 shows signs of breaking its recent losing streak amidst a broader positive trend in global markets, investors are closely monitoring economic indicators and central bank decisions that could influence market dynamics. In this context, identifying stocks that may be undervalued involves assessing companies with strong fundamentals that appear to be priced below their potential given the current economic environment and market conditions.

Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom

Name

Current Price

Fair Value (Est)

Discount (Est)

Kier Group (LSE:KIE)

£1.378

£2.72

49.3%

Morgan Advanced Materials (LSE:MGAM)

£3.085

£6.08

49.2%

Mercia Asset Management (AIM:MERC)

£0.295

£0.58

49.1%

LSL Property Services (LSE:LSL)

£3.16

£6.00

47.4%

WPP (LSE:WPP)

£7.38

£13.86

46.7%

YouGov (AIM:YOU)

£8.12

£15.32

47%

Elementis (LSE:ELM)

£1.43

£2.78

48.6%

Loungers (AIM:LGRS)

£2.83

£5.35

47.1%

Nexxen International (AIM:NEXN)

£2.51

£4.91

48.9%

eEnergy Group (AIM:EAAS)

£0.0565

£0.11

48.8%

Click here to see the full list of 65 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results

accesso Technology Group

Overview: Accesso Technology Group plc specializes in developing technology solutions for the attractions and leisure industry across various global regions, with a market capitalization of approximately £295.73 million.

Operations: The company generates revenue through two primary segments: Ticketing, which brought in $104.02 million, and Guest Experience, contributing $45.49 million.

Estimated Discount To Fair Value: 26.8%

Accesso Technology Group, priced at £7.28, is considered undervalued by more than 20% against a fair value of £9.94 based on discounted cash flow analysis. Despite a low forecasted return on equity of 6.4% in three years, the company's earnings are expected to grow significantly at 25.3% annually, outpacing the UK market's growth rate of 13.1%. Recent strategic moves include launching accesso ShoWare in the UK and securing a major contract with Saudi Entertainment Ventures, enhancing its market position and potential for revenue growth.

AIM:ACSO Discounted Cash Flow as at Jun 2024
AIM:ACSO Discounted Cash Flow as at Jun 2024

Bridgepoint Group

Overview: Bridgepoint Group plc operates as a private equity and private credit firm focusing on various investment strategies in the middle market, with a market capitalization of approximately £1.72 billion.