In recent months, the UK market has faced challenges as the FTSE 100 index experienced declines due to weak trade data from China, impacting companies closely tied to its economic performance. Amid these fluctuations, identifying stocks that may be trading below their fair value can present opportunities for investors seeking resilience and potential growth in a complex global environment.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
Name
Current Price
Fair Value (Est)
Discount (Est)
Vulcan Two Group (AIM:VUL)
£2.65
£5.25
49.6%
Tristel (AIM:TSTL)
£3.80
£7.57
49.8%
RHI Magnesita (LSE:RHIM)
£29.20
£55.40
47.3%
Playtech (LSE:PTEC)
£3.528
£6.59
46.5%
Oxford Biomedica (LSE:OXB)
£6.16
£12.10
49.1%
National Atomic Company Kazatomprom JSC (LSE:KAP)
US$72.60
US$145.18
50%
Mitie Group (LSE:MTO)
£1.729
£3.40
49.1%
M&G (LSE:MNG)
£3.143
£6.03
47.9%
Fevertree Drinks (AIM:FEVR)
£7.58
£14.94
49.3%
B90 Holdings (AIM:B90)
£0.024
£0.045
46.1%
Here’s a peek at a few of the choices from the screener.
Overview: Bridgepoint Group plc is a private equity and private credit firm focusing on middle market, lower mid-market, small mid cap, small cap investments including growth capital and buyouts with a market cap of approximately £2.34 billion.
Operations: The company’s revenue segments comprise £84.50 million from Credit, £17.80 million from Central, £178 million from Infrastructure, and £311.80 million from Private Equity.
Estimated Discount To Fair Value: 40.2%
Bridgepoint Group is trading at £2.67, significantly below its estimated future cash flow value of £4.46, indicating it may be undervalued based on cash flows. Despite a recent decline in profit margins from 15.2% to 6.6%, earnings are forecast to grow significantly by 38.7% annually, outpacing the UK market’s growth rate of 11.5%. However, the dividend yield of 3.52% is not well covered by earnings, suggesting caution for income-focused investors.
LSE:BPT Discounted Cash Flow as at Jun 2026
Overview: Kainos Group plc provides digital technology services across the United Kingdom, Ireland, the Americas, Central Europe, and internationally with a market cap of £1.05 billion.
Operations: The company’s revenue is derived from three main segments: Digital Services (£241.74 million), Workday Products (£81.75 million), and Workday Services (£107.61 million).
Estimated Discount To Fair Value: 36.4%
Kainos Group is trading at £9.07, below its estimated future cash flow value of £14.27, reflecting potential undervaluation based on cash flows. Earnings grew 19.5% last year and are forecast to grow 14.9% annually, outpacing the UK market’s growth rate of 11.5%. Recent earnings showed net income increased to £42.5 million from £35.56 million a year ago, though the dividend track record remains unstable despite a proposed increase this year.
LSE:KNOS Discounted Cash Flow as at Jun 2026
Overview: QinetiQ Group plc offers science and technology solutions in the defense, security, and infrastructure sectors across the United Kingdom, the United States, Australia, and internationally with a market cap of £2.51 billion.
Operations: The company’s revenue is primarily derived from its EMEA Services segment, which accounts for £1.53 billion, and its Global Solutions segment, contributing £393.40 million.
Estimated Discount To Fair Value: 28.8%
QinetiQ Group is trading at £4.82, below its estimated future cash flow value of £6.77, suggesting undervaluation based on cash flows. The company recently reported a net income of £107.5 million, reversing a loss from the previous year, and forecasts earnings growth outpacing the UK market at 17.2% annually. With a strong buyback program completed and an increased dividend proposal for FY26, QinetiQ demonstrates robust financial management and shareholder returns potential.
LSE:QQ. Discounted Cash Flow as at Jun 2026 Where To Now?
Access the full spectrum of 50 Undervalued UK Stocks Based On Cash Flows by clicking on this link.
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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:BPT LSE:KNOS and LSE:QQ..
This article was originally published by Simply Wall St.
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