In This Article:
As the FTSE 100 shows signs of resilience, gaining for a third consecutive day amidst global market fluctuations and key policy decisions, investors are closely monitoring the evolving economic landscape. In this context, identifying stocks that appear undervalued relative to their intrinsic value could be particularly compelling, especially when considering potential shifts in market dynamics influenced by central bank policies and economic indicators.
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) | £24.80 | £47.76 | 48.1% |
| Kier Group (LSE:KIE) | £1.40 | £2.73 | 48.7% |
| Morgan Advanced Materials (LSE:MGAM) | £3.135 | £6.09 | 48.5% |
| Mercia Asset Management (AIM:MERC) | £0.30 | £0.58 | 48.3% |
| Deliveroo (LSE:ROO) | £1.321 | £2.51 | 47.4% |
| John Wood Group (LSE:WG.) | £2.00 | £3.98 | 49.7% |
| Loungers (AIM:LGRS) | £2.68 | £5.33 | 49.7% |
| Elementis (LSE:ELM) | £1.456 | £2.79 | 47.7% |
| Nexxen International (AIM:NEXN) | £2.48 | £4.89 | 49.3% |
| eEnergy Group (AIM:EAAS) | £0.055 | £0.11 | 49.7% |
Let's take a closer look at a couple of our picks from the screened companies
CMC Markets
Overview: CMC Markets plc operates as an online provider of retail financial services, catering to various client types including retail, professional, and institutional across multiple regions globally, with a market capitalization of approximately £0.78 billion.
Operations: The company generates its revenue from online financial services offered to a diverse client base across various global regions.
Estimated Discount To Fair Value: 45.5%
CMC Markets, priced at £2.81, is significantly undervalued with a fair value estimation of £5.16, reflecting a 45.5% discount. Despite lower profit margins this year at 4%, down from last year's 23.7%, the company's earnings are expected to grow robustly by 45.42% annually over the next three years, outpacing the UK market forecast of 13.1%. Recent inclusion in the FTSE 250 and revised upward earnings guidance further underscore its potential despite some concerns about quality due to one-off items impacting results.
Elementis
Overview: Elementis plc is a specialty chemical company with operations in the United Kingdom, Europe, North America, and internationally, boasting a market capitalization of approximately £0.86 billion.
Operations: Elementis generates revenue from three primary segments: Talc ($136.50 million), Personal Care ($209.30 million), and Coatings (Including Energy) ($367.60 million).