As the UK market grapples with global economic challenges, including weak trade data from China impacting the FTSE 100, investors are keenly observing potential opportunities amidst these fluctuations. In this environment, identifying stocks that may be trading below their fair value can offer a strategic advantage for those looking to navigate the current uncertainties effectively.
Name
Current Price
Fair Value (Est)
Discount (Est)
THG (LSE:THG)
£0.3914
£0.71
45.2%
TBC Bank Group (LSE:TBCG)
£50.05
£99.34
49.6%
SDI Group (AIM:SDI)
£0.835
£1.55
46.2%
RHI Magnesita (LSE:RHIM)
£27.60
£53.24
48.2%
Pan African Resources (LSE:PAF)
£1.543
£3.05
49.4%
M&C Saatchi (AIM:SAA)
£1.23
£2.38
48.3%
James Fisher and Sons (LSE:FSJ)
£4.72
£9.05
47.8%
GB Group (LSE:GBG)
£2.188
£4.01
45.5%
Eurocell (LSE:ECEL)
£1.115
£2.07
46.2%
Beauty Tech Group (LSE:TBTG)
£3.14
£5.82
46%
Underneath we present a selection of stocks filtered out by our screen.
Overview: Croda International Plc operates in the consumer care, life science, and industrial specialty sectors across Europe, the Middle East, Africa, North America, Asia, and Latin America with a market cap of approximately £4.18 billion.
Operations: The company’s revenue is derived from three main segments: Consumer Care (£972.70 million), Life Sciences (£532.20 million), and Industrial Specialties (£194.50 million).
Estimated Discount To Fair Value: 20.7%
Croda International is trading at £30.01, below its estimated future cash flow value of £37.85, indicating it may be undervalued based on cash flows. Despite a decline in net income to £62 million for 2025, earnings are forecasted to grow significantly at 25.2% annually over the next three years, outpacing the UK market’s growth rate. However, profit margins have decreased from 9.7% to 3.6%, and dividends remain inadequately covered by earnings or free cash flows.
LSE:CRDA Discounted Cash Flow as at Apr 2026
Overview: Entain Plc is a sports-betting and gaming company with operations in the UK, Ireland, Italy, Europe, Australia, New Zealand, and internationally; it has a market cap of £3.81 billion.
Operations: Entain’s revenue is primarily derived from its International segment (£2.58 billion), the UK & Ireland (£2.18 billion), and Central and Eastern Europe (CEE) (£521.70 million).
Estimated Discount To Fair Value: 42.8%
Entain is trading at £5.96, notably below its estimated future cash flow value of £10.42, highlighting potential undervaluation based on cash flows. Despite reporting a net loss of £666.7 million for 2025, the company is forecasted to achieve profitability within three years with an annual profit growth rate exceeding the market average. While dividends are not well-covered by earnings, Entain’s relative value remains attractive compared to industry peers and its return on equity is projected to be robust at 32%.
LSE:ENT Discounted Cash Flow as at Apr 2026
Overview: Gulf Keystone Petroleum Limited focuses on the exploration, development, and production of oil and gas in the Kurdistan Region of Iraq with a market cap of £416.19 million.
Operations: The company’s revenue segment consists of $193.09 million from the exploration and production of oil and gas in the Kurdistan Region of Iraq.
Estimated Discount To Fair Value: 37.5%
Gulf Keystone Petroleum is trading at £1.91, significantly below its estimated future cash flow value of £3.06, suggesting undervaluation based on cash flows. The company reported a net income of $15.13 million for 2025, more than doubling from the previous year. Although earnings are forecast to grow substantially at 41% annually, recent insider selling and an unsustainable dividend raise concerns about long-term stability despite high projected returns on equity of 30.5%.
LSE:GKP Discounted Cash Flow as at Apr 2026
Take a closer look at our Undervalued UK Stocks Based On Cash Flows list of 59 companies by clicking here.
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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:CRDA LSE:ENT and LSE:GKP.
This article was originally published by Simply Wall St.
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