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The United Kingdom's FTSE 100 index has recently faced challenges, closing lower amid weak trade data from China, which continues to struggle with its economic recovery. Despite these broader market pressures, there are opportunities for investors to identify undervalued stocks that may be trading at significant discounts.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Begbies Traynor Group (AIM:BEG) | £0.938 | £1.68 | 44.2% |
| Aptitude Software Group (LSE:APTD) | £2.77 | £5.14 | 46.1% |
| AstraZeneca (LSE:AZN) | £107.54 | £191.91 | 44% |
| Gooch & Housego (AIM:GHH) | £4.11 | £7.20 | 42.9% |
| On the Beach Group (LSE:OTB) | £2.725 | £4.75 | 42.6% |
| ECO Animal Health Group (AIM:EAH) | £0.66 | £1.28 | 48.3% |
| Fintel (AIM:FNTL) | £2.40 | £4.20 | 42.9% |
| Ibstock (LSE:IBST) | £1.874 | £3.24 | 42.1% |
| Crest Nicholson Holdings (LSE:CRST) | £1.881 | £3.66 | 48.6% |
| Kromek Group (AIM:KMK) | £0.054 | £0.10 | 47.5% |
We'll examine a selection from our screener results.
Hammerson
Overview: Hammerson is an owner, operator, and developer of prime urban real estate in the UK, Ireland, and France with a portfolio valued at £4.7 billion and a market cap of approximately £1.25 billion.
Operations: The company's revenue segments include £80 million from UK flagship destinations, £55.30 million from France flagship destinations, and £37.70 million from Ireland flagship destinations.
Estimated Discount To Fair Value: 18.5%
Hammerson is trading at £2.58, below its estimated fair value of £3.16, reflecting an 18.5% undervaluation based on discounted cash flows. Despite a challenging year with a net loss of £526.3 million and declining sales to £81.8 million, earnings are projected to grow 45.75% annually over the next three years as the company aims for profitability, outpacing average market growth expectations in the UK.
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The growth report we've compiled suggests that Hammerson's future prospects could be on the up.
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Delve into the full analysis health report here for a deeper understanding of Hammerson.
Hochschild Mining
Overview: Hochschild Mining plc is a precious metals company involved in the exploration, mining, processing, and sale of gold and silver deposits across Peru, Argentina, the United Kingdom, Canada, Brazil, and Chile with a market cap of £1.41 billion.
Operations: Hochschild Mining's revenue segments include $293.34 million from San Jose, $149.82 million from Mara Rosa, $504.34 million from Inmaculada, and a slight negative contribution of -$0.26 million from Pallancata.
Estimated Discount To Fair Value: 21.2%