In This Article:
Over the last 7 days, the United Kingdom market has remained flat, but it is up 8.8% over the past year with earnings forecast to grow by 14% annually. In this context of steady growth and positive earnings outlook, identifying stocks estimated below their intrinsic value can be a strategic approach for investors seeking potential opportunities.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Triple Point Social Housing REIT (LSE:SOHO) | £0.659 | £1.31 | 49.8% |
| GlobalData (AIM:DATA) | £1.935 | £3.72 | 47.9% |
| On the Beach Group (LSE:OTB) | £1.538 | £3.06 | 49.7% |
| S&U (LSE:SUS) | £19.50 | £36.54 | 46.6% |
| Informa (LSE:INF) | £8.092 | £15.70 | 48.5% |
| Redcentric (AIM:RCN) | £1.23 | £2.41 | 48.9% |
| Gulf Keystone Petroleum (LSE:GKP) | £1.319 | £2.49 | 47% |
| Mpac Group (AIM:MPAC) | £4.75 | £9.02 | 47.3% |
| Loungers (AIM:LGRS) | £2.68 | £5.34 | 49.8% |
| Genel Energy (LSE:GENL) | £0.793 | £1.51 | 47.5% |
Below we spotlight a couple of our favorites from our exclusive screener.
Bridgepoint Group
Overview: Bridgepoint Group plc is a private equity and private credit firm focusing on middle market and small cap investments, with a market capitalization of approximately £2.74 billion.
Operations: The company's revenue segments include Private Credit generating £74.50 million and Private Equity contributing £285.60 million.
Estimated Discount To Fair Value: 11.1%
Bridgepoint Group is trading at £3.33, below its estimated fair value of £3.74, suggesting it may be undervalued based on cash flows. Despite a lower profit margin this year, earnings and revenue are forecast to grow significantly faster than the UK market. However, recent shareholder dilution and dividends not fully covered by earnings pose concerns. The company has completed a share buyback and is rumored to consider acquiring Esker SA, indicating strategic growth initiatives amidst ongoing executive changes.
Phoenix Group Holdings
Overview: Phoenix Group Holdings plc operates in the long-term savings and retirement business in Europe, with a market cap of £5.25 billion.
Operations: The company's revenue segments include Retirement Solutions at £2.01 billion, with negative contributions from With-profits at -£1.56 billion, Europe & Other at -£0.89 billion, and Pensions & Savings at -£0.42 billion.
Estimated Discount To Fair Value: 18.8%