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Entain is trading at £7.36, significantly below its estimated fair value of £14.55, highlighting potential undervaluation based on cash flows. With revenue growth forecasted at 4.7% annually, surpassing the UK market rate, and an expected annual earnings growth of 88.87%, Entain shows promising financial prospects despite a low projected return on equity of 15.7%. Analysts anticipate a stock price increase of 30.2%, although dividend coverage remains weak.

• According our earnings growth report, there's an indication that Entain might be ready to expand.

• Dive into the specifics of Entain here with our thorough financial health report.

Watches of Switzerland Group

Overview: Watches of Switzerland Group PLC is a retailer specializing in luxury watches and jewelry across the United Kingdom, Europe, and the United States, with a market cap of £1.34 billion.

Operations: The company's revenue is derived from its operations in the US, contributing £718.90 million, and in the UK and Europe, generating £842.40 million.

Estimated Discount To Fair Value: 39.2%

Watches of Switzerland Group is trading at £5.55, well below its estimated fair value of £9.13, reflecting potential undervaluation based on cash flows. Despite a drop in net income to £28.9 million for H1 2025 from £47 million the previous year, earnings are forecast to grow significantly at 26.95% annually over the next three years, outpacing UK market growth rates and indicating robust future financial performance despite current profit margin challenges.

• In light of our recent growth report, it seems possible that Watches of Switzerland Group's financial performance will exceed current levels.

• Click here to discover the nuances of Watches of Switzerland Group with our detailed financial health report.

Where To Now?

• Click this link to deep-dive into the 48 companies within our Undervalued UK Stocks Based On Cash Flows screener.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AIM:GBG LSE:ENT and LSE:WOSG.

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