The UK market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines amid weak trade data from China, highlighting concerns over global economic recovery. In such an environment, identifying stocks that are potentially undervalued can be a strategic approach for investors seeking opportunities; Barratt Developments and Redrow are among those estimated to be trading below their intrinsic value in this fluctuating market.
Name
Current Price
Fair Value (Est)
Discount (Est)
Vistry Group (LSE:VTY)
£6.224
£12.27
49.3%
Tortilla Mexican Grill (AIM:MEX)
£0.425
£0.78
45.5%
PageGroup (LSE:PAGE)
£2.254
£4.50
50%
Motorpoint Group (LSE:MOTR)
£1.35
£2.66
49.3%
Ibstock (LSE:IBST)
£1.368
£2.67
48.7%
Gym Group (LSE:GYM)
£1.50
£2.94
48.9%
Forterra (LSE:FORT)
£1.818
£3.29
44.8%
Fintel (AIM:FNTL)
£2.05
£3.80
46%
Fevertree Drinks (AIM:FEVR)
£8.27
£15.87
47.9%
Advanced Medical Solutions Group (AIM:AMS)
£2.165
£4.18
48.2%
Underneath we present a selection of stocks filtered out by our screen.
Overview: Barratt Redrow plc operates in the housebuilding sector within the United Kingdom, with a market capitalization of approximately £5.24 billion.
Operations: The company generates revenue of £5.58 billion from its housebuilding segment in the United Kingdom.
Estimated Discount To Fair Value: 41.8%
Barratt Redrow is trading at £3.71, significantly below its estimated fair value of £6.36, highlighting its potential undervaluation based on cash flows. Despite a forecasted earnings growth of 23.7% per year, which surpasses the UK market’s average, the dividend yield of 4.75% is not well covered by earnings or free cash flows. Recent executive changes include the departure of CFO Mike Scott and director John Fyfe Lennox, impacting leadership stability amidst these financial evaluations.
LSE:BTRW Discounted Cash Flow as at Dec 2025
Overview: Essentra plc manufactures and distributes plastic injection moulded, vinyl dip moulded, and metal items across Europe, the Middle East, Africa, the Americas, and the Asia Pacific with a market cap of £278.64 million.
Operations: Essentra generates revenue through the production and distribution of plastic injection moulded, vinyl dip moulded, and metal products across various regions including Europe, the Middle East, Africa, the Americas, and Asia Pacific.
Estimated Discount To Fair Value: 42.7%
Essentra is trading at £0.98, well below its estimated fair value of £1.71, indicating potential undervaluation based on cash flows. Earnings are forecast to grow significantly at 38% annually, outpacing the UK market’s growth rate. However, revenue growth is modest at 4.8% per year and return on equity is expected to remain low in three years. The dividend track record is unstable and recent large one-off items have impacted financial results.
LSE:ESNT Discounted Cash Flow as at Dec 2025
Overview: Foresight Group Holdings Limited is an infrastructure and private equity manager operating in the United Kingdom, Italy, Luxembourg, Ireland, Spain, and Australia with a market cap of £480.11 million.
Operations: The company’s revenue is primarily derived from three segments: Real Assets (£105.67 million), Private Equity (£47.43 million), and Foresight Capital Management (£9.22 million).
Estimated Discount To Fair Value: 15.6%
Foresight Group Holdings is trading at £4.19, below its estimated fair value of £4.96, suggesting undervaluation based on cash flows. With earnings forecast to grow 18.5% annually, it outpaces the UK market’s growth rate of 14.1%. Recent results show strong performance with net income rising to £18.39 million from £12.65 million a year ago, and an interim dividend increase aligns with their policy targeting a 60% payout ratio of adjusted profit after tax.
LSE:FSG Discounted Cash Flow as at Dec 2025
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:BTRW LSE:ESNT and LSE:FSG.
This article was originally published by Simply Wall St.
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