3 UK Stocks Estimated To Be Trading At Up To 49.6% Below Intrinsic Value

The United Kingdom’s stock market has been under pressure recently, with the FTSE 100 index experiencing declines due to weak trade data from China and falling commodity prices. As global economic uncertainties weigh on investor sentiment, identifying undervalued stocks becomes crucial for those looking to capitalize on potential market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom

Name

Current Price

Fair Value (Est)

Discount (Est)

Tristel (AIM:TSTL)

£4.075

£7.59

46.3%

Playtech (LSE:PTEC)

£3.384

£6.60

48.7%

Oxford Biomedica (LSE:OXB)

£6.35

£12.25

48.2%

Mitie Group (LSE:MTO)

£1.70

£3.38

49.7%

James Fisher and Sons (LSE:FSJ)

£5.02

£9.97

49.6%

Fevertree Drinks (AIM:FEVR)

£7.80

£14.92

47.7%

Entain (LSE:ENT)

£5.266

£10.04

47.6%

Convatec Group (LSE:CTEC)

£2.054

£4.07

49.5%

B90 Holdings (AIM:B90)

£0.023

£0.045

49.1%

Advanced Medical Solutions Group (AIM:AMS)

£2.49

£4.87

48.8%

Click here to see the full list of 59 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Let’s explore several standout options from the results in the screener.

Overview: CAB Payments Holdings Limited offers business-to-business cross-border payments and foreign exchange services across multiple regions including the Americas, the UK, Europe, Africa, the Middle East, and Asia with a market capitalization of £203.09 million.

Operations: The company’s revenue is primarily derived from its business-to-business cross-border payments and foreign exchange services, amounting to £86.08 million.

Estimated Discount To Fair Value: 30.1%

CAB Payments Holdings appears undervalued, trading at £0.8 against a future cash flow value of £1.14, representing a discount of over 20%. The company’s earnings and revenue are projected to grow significantly faster than the UK market, with expected annual profit growth of 24.8% and revenue growth of 16%. Recent M&A interest from StoneX Group highlighted CAB’s perceived undervaluation, though the acquisition offer was ultimately rejected for not aligning with its future prospects.

LSE:CABP Discounted Cash Flow as at May 2026

Overview: CVS Group plc operates veterinary services, an online pharmacy, and retail businesses in the United Kingdom and Australia, with a market cap of £800.49 million.

Operations: The company generates revenue from its segments, including £632.70 million from Veterinary Practices, £33 million from Laboratories, and £47.90 million from its Online Retail Business.

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Estimated Discount To Fair Value: 32.5%

CVS Group is trading at £11.41, significantly below its estimated future cash flow value of £16.9, suggesting it may be undervalued. Despite high debt levels and a forecasted low return on equity of 14.5%, earnings are expected to grow 21% annually, outpacing the UK market’s growth rate. Recent board changes include the appointment of Laura Hagan as an Independent Non-Executive Director, enhancing leadership with her extensive experience in people development and international expansion.

LSE:CVSG Discounted Cash Flow as at May 2026

Overview: James Fisher and Sons plc is an engineering services company with operations across the United Kingdom, Europe, the Middle East, Africa, the Americas, and Asia-Pacific, and has a market cap of £253.90 million.

Operations: The company’s revenue is derived from three main segments: Energy (£158.60 million), Defence (£88.80 million), and Maritime Transport (£147 million).

Estimated Discount To Fair Value: 49.6%

James Fisher and Sons is trading at £5.02, well below its estimated future cash flow value of £9.97, highlighting potential undervaluation. Despite recent financial challenges with a net loss of £4.4 million for 2025, earnings are forecast to grow annually by 58.55%, surpassing UK market averages and indicating a return to profitability within three years. However, interest payments currently exceed earnings coverage, which may pose financial risks if not addressed effectively.

LSE:FSJ Discounted Cash Flow as at May 2026 Turning Ideas Into Actions Want To Explore Some Alternatives?

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include LSE:CABP LSE:CVSG and LSE:FSJ.

This article was originally published by Simply Wall St.

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3 UK Stocks Estimated To Be Trading At Up To 49.6% Below Intrinsic Value

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