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The United Kingdom's FTSE 100 index has recently experienced downturns, influenced by weak trade data from China that highlighted ongoing challenges in the global economy. As London markets navigate these pressures, investors may find opportunities in stocks perceived to be trading below their estimated fair value, especially those resilient to fluctuating international demand and capable of weathering economic uncertainties.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Gaming Realms (AIM:GMR) | £0.365 | £0.72 | 49.2% |
| Fevertree Drinks (AIM:FEVR) | £6.665 | £13.12 | 49.2% |
| Brickability Group (AIM:BRCK) | £0.636 | £1.26 | 49.7% |
| GlobalData (AIM:DATA) | £1.875 | £3.74 | 49.8% |
| Tracsis (AIM:TRCS) | £5.06 | £9.76 | 48.2% |
| Zotefoams (LSE:ZTF) | £3.16 | £5.82 | 45.7% |
| Duke Capital (AIM:DUKE) | £0.305 | £0.58 | 47.5% |
| Victrex (LSE:VCT) | £10.66 | £19.84 | 46.3% |
| Quartix Technologies (AIM:QTX) | £1.56 | £2.93 | 46.7% |
| St. James's Place (LSE:STJ) | £8.49 | £16.52 | 48.6% |
Let's review some notable picks from our screened stocks.
GlobalData
Overview: GlobalData Plc, along with its subsidiaries, offers business information through proprietary data, analytics, and insights across Europe, North America, and the Asia Pacific regions; it has a market cap of £1.49 billion.
Operations: The company generates £276.80 million in revenue from its Data, Analytics, and Insights segment across its operational regions.
Estimated Discount To Fair Value: 49.8%
GlobalData is trading at £1.88, significantly below its estimated fair value of £3.74, highlighting its undervaluation based on discounted cash flow analysis. The company's earnings are projected to grow substantially at 27.69% annually, outpacing the UK market's growth rate of 14.8%. However, while revenue is expected to grow faster than the market at 7.5% per year, it remains below high-growth benchmarks and its dividend yield of 2.51% lacks coverage by earnings.
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Our growth report here indicates GlobalData may be poised for an improving outlook.
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Take a closer look at GlobalData's balance sheet health here in our report.
Restore
Overview: Restore plc, with a market cap of £331.36 million, offers office and workplace services to both public and private sectors mainly in the United Kingdom.
Operations: The company's revenue is derived from Secure Lifecycle Services (£104.40 million) and Digital & Information Management (£172.50 million).
Estimated Discount To Fair Value: 27.8%
Restore is trading at £2.42, below its estimated fair value of £3.35, indicating undervaluation based on discounted cash flow analysis. Despite a flat revenue forecast due to market uncertainty, earnings are expected to grow significantly at 48.22% annually, surpassing the UK market's growth rate of 14.8%. However, interest payments and dividends remain poorly covered by earnings. Recent board changes include Patrick Butcher's appointment as a non-executive director amidst these financial dynamics.