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The UK stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines due to weak trade data from China, highlighting global economic uncertainties. In such a volatile environment, identifying stocks that are trading below their fair value can present potential opportunities for investors seeking to navigate these conditions.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Gaming Realms (AIM:GMR) | £0.396 | £0.74 | 46.2% |
| ConvaTec Group (LSE:CTEC) | £2.154 | £3.90 | 44.8% |
| Fevertree Drinks (AIM:FEVR) | £7.215 | £12.90 | 44.1% |
| GlobalData (AIM:DATA) | £1.99 | £3.75 | 46.9% |
| Informa (LSE:INF) | £8.092 | £15.44 | 47.6% |
| Mpac Group (AIM:MPAC) | £5.03 | £9.00 | 44.1% |
| Quartix Technologies (AIM:QTX) | £1.665 | £3.08 | 45.9% |
| Foxtons Group (LSE:FOXT) | £0.584 | £1.06 | 44.7% |
| Auction Technology Group (LSE:ATG) | £4.70 | £8.43 | 44.3% |
| Genel Energy (LSE:GENL) | £0.78 | £1.46 | 46.7% |
Let's uncover some gems from our specialized screener.
Auction Technology Group
Overview: Auction Technology Group plc operates online auction marketplaces in the United Kingdom, North America, and Germany, with a market cap of £572.05 million.
Operations: Revenue segments for Auction Technology Group plc include Content generating $3.90 million, Auction Services at $9.81 million, Arts and Antiques (A&A) contributing $89.24 million, and Industrial and Commercial (I&C) with $73.06 million.
Estimated Discount To Fair Value: 44.3%
Auction Technology Group appears undervalued based on cash flows, trading at 44.3% below its estimated fair value of £8.43 per share. Despite a forecasted slower revenue growth of 6.2% annually, earnings are expected to grow significantly by 33.5% per year, outpacing the UK market average of 14.4%. Recent guidance indicates a revenue increase to $174 million for 2024, while board changes include Tom Hargreaves stepping down as CFO early next year.
Genel Energy
Overview: Genel Energy plc is an independent oil and gas exploration and production company with a market cap of £216.20 million.
Operations: The company generates revenue primarily from its production segment, amounting to $74.40 million.
Estimated Discount To Fair Value: 46.7%
Genel Energy is trading at £0.78, significantly undervalued compared to its estimated fair value of £1.46, with analysts agreeing on a potential price increase of 23.7%. Despite reporting a net loss of US$21.9 million for the first half of 2024, earnings are projected to grow by 56.49% annually, and revenue is expected to rise by 15.4% per year—outpacing UK market growth forecasts—though return on equity remains low at an anticipated 9.5%.