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The United Kingdom's stock market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China and falling commodity prices impacting major companies. As global economic uncertainties continue to influence market performance, identifying undervalued stocks becomes crucial for investors looking to capitalize on potential opportunities. In this context, understanding which stocks may be trading at significant discounts can provide valuable insights into potentially promising investments amidst current market conditions.
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) | £0.978 | £1.67 | 41.6% |
| Savills (LSE:SVS) | £9.66 | £16.50 | 41.5% |
| Aptitude Software Group (LSE:APTD) | £2.79 | £5.15 | 45.8% |
| Property Franchise Group (AIM:TPFG) | £4.80 | £8.15 | 41.1% |
| Informa (LSE:INF) | £8.012 | £15.29 | 47.6% |
| Duke Capital (AIM:DUKE) | £0.28 | £0.54 | 48% |
| SDI Group (AIM:SDI) | £0.752 | £1.38 | 45.6% |
| Vistry Group (LSE:VTY) | £6.142 | £11.37 | 46% |
| Entain (LSE:ENT) | £7.706 | £14.01 | 45% |
| Deliveroo (LSE:ROO) | £1.749 | £3.07 | 43% |
Let's take a closer look at a couple of our picks from the screened companies.
Burberry Group
Overview: Burberry Group plc, along with its subsidiaries, is engaged in the manufacturing, retailing, and wholesaling of luxury goods under the Burberry brand, with a market cap of approximately £3.63 billion.
Operations: The company's revenue is primarily derived from its Retail/Wholesale segment at £2.40 billion, with an additional contribution of £67 million from Licensing.
Estimated Discount To Fair Value: 33.9%
Burberry Group is trading 33.9% below its estimated fair value of £15.29, suggesting it may be undervalued based on cash flows despite recent challenges. The company reported a net loss of £75 million for the year ended March 2025, with sales declining to £2.46 billion from £2.97 billion the previous year. While earnings are forecast to grow significantly over the next three years, recent guidance indicates a mid-teens decline in wholesale revenue for early fiscal 2026.
Phoenix Group Holdings
Overview: Phoenix Group Holdings plc operates in the long-term savings and retirement business in Europe, with a market cap of £6.16 billion.
Operations: The company generates revenue primarily from Retirement Solutions, which accounts for £4.46 billion.