As the United Kingdom’s FTSE 100 index faces downward pressure due to weak trade data from China, investors are closely monitoring market conditions that have impacted sectors tied to global demand. In such a fluctuating environment, identifying stocks that may be trading below their estimated value can offer potential opportunities for those looking to capitalize on undervaluation amidst broader economic uncertainties.

Name

Current Price

Fair Value (Est)

Discount (Est)

Vistry Group (LSE:VTY)

£6.456

£10.85

40.5%

Topps Tiles (LSE:TPT)

£0.352

£0.61

42.2%

LSL Property Services (LSE:LSL)

£3.11

£5.68

45.2%

Jubilee Metals Group (AIM:JLP)

£0.035

£0.065

45.7%

Informa (LSE:INF)

£7.978

£14.49

45%

Hostelworld Group (LSE:HSW)

£1.365

£2.60

47.4%

Gooch & Housego (AIM:GHH)

£6.06

£10.55

42.6%

Franchise Brands (AIM:FRAN)

£1.475

£2.56

42.5%

Deliveroo (LSE:ROO)

£1.758

£3.06

42.5%

AstraZeneca (LSE:AZN)

£101.44

£178.07

43%

Click here to see the full list of 51 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Let’s take a closer look at a couple of our picks from the screened companies.

Overview: Franchise Brands plc operates in franchising and related activities across the United Kingdom, Ireland, North America, and Continental Europe with a market cap of £283.99 million.

Operations: The company’s revenue segments include Azura (£0.81 million), Pirtek (£63.91 million), B2C Division (£5.75 million), Filta International (£25.60 million), and Water & Waste Services (£46.05 million).

Estimated Discount To Fair Value: 42.5%

Franchise Brands plc appears undervalued, trading at £1.48, significantly below its estimated fair value of £2.56. The company reported substantial earnings growth, with net income rising from £2.99 million to £7.28 million in 2024 and earnings per share increasing markedly year-over-year. Earnings are forecasted to grow at 29.4% annually, outpacing the UK market’s 14.3% projection, while revenue is expected to increase by 7.4% per year.

AIM:FRAN Discounted Cash Flow as at Jun 2025

AIM:FRAN Discounted Cash Flow as at Jun 2025

Overview: Victorian Plumbing Group plc is an online retailer specializing in bathroom products and accessories for both B2C and trade customers in the United Kingdom, with a market cap of £261.98 million.

Operations: Revenue segments for the company include online retail sales of bathroom products and accessories to both consumer and trade markets in the UK.

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