As the UK market grapples with global economic challenges, including weak trade data from China affecting the FTSE 100 and FTSE 250 indices, investors are increasingly on the lookout for opportunities amidst uncertainty. In such an environment, identifying stocks that may be trading below their estimated value can offer potential advantages by focusing on companies with strong fundamentals and resilience against broader market pressures.

Name

Current Price

Fair Value (Est)

Discount (Est)

Victrex (LSE:VCT)

£7.19

£13.69

47.5%

Topps Tiles (LSE:TPT)

£0.38

£0.7

45.5%

TBC Bank Group (LSE:TBCG)

£48.60

£93.32

47.9%

Moonpig Group (LSE:MOON)

£2.18

£4.02

45.7%

Marlowe (AIM:MRL)

£4.40

£8.35

47.3%

LSL Property Services (LSE:LSL)

£3.11

£5.95

47.8%

Informa (LSE:INF)

£8.232

£15.15

45.7%

Burberry Group (LSE:BRBY)

£12.04

£23.71

49.2%

AstraZeneca (LSE:AZN)

£103.62

£191.83

46%

Aptitude Software Group (LSE:APTD)

£2.96

£5.43

45.5%

Click here to see the full list of 60 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Overview: Young & Co.’s Brewery, P.L.C. operates and manages pubs and hotels in the United Kingdom with a market cap of £519.49 million.

Operations: The company generates revenue primarily through its Managed Houses segment, which accounts for £485 million.

Estimated Discount To Fair Value: 11.4%

Young’s Brewery is trading at £9.6, below its estimated fair value of £10.83, indicating potential undervaluation based on cash flows. Recent sales growth, driven by favorable weather and strong performance in gardens and riverside pubs, supports this view. Despite a dip in net income to £9.8 million from the previous year, earnings are forecast to grow significantly at 34.4% annually over the next three years compared to the UK market’s 14.5%.

AIM:YNGA Discounted Cash Flow as at Jul 2025

AIM:YNGA Discounted Cash Flow as at Jul 2025

Overview: Hollywood Bowl Group plc operates ten-pin bowling and mini-golf centers in the United Kingdom and internationally, with a market cap of £421.15 million.

Operations: The company generates revenue of £240.46 million from its recreational activities segment, which includes ten-pin bowling and mini-golf centers.

Estimated Discount To Fair Value: 12.9%

Hollywood Bowl Group is trading at £2.5, below its fair value estimate of £2.87, presenting a potential undervaluation based on cash flows. The company’s earnings are forecast to grow 14.5% annually, outpacing the UK market’s growth rate, with revenue expected to rise by 6.6% per year. Recent earnings showed a slight decline in net income to £20.63 million despite an increase in sales to £129.25 million for H1 2025 compared to the previous year.

Weiterlesen