UK Stock Market: 3 Companies Estimated To Be Undervalued In September 2025

Sep 19, 2025
uk-stock-market:-3-companies-estimated-to-be-undervalued-in-september-2025

4 min read

In recent weeks, the UK stock market has faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China and its impact on companies closely tied to Chinese fortunes. As global economic uncertainties continue to influence market dynamics, identifying undervalued stocks becomes crucial for investors seeking potential opportunities amidst broader market fluctuations.

Name

Current Price

Fair Value (Est)

Discount (Est)

TBC Bank Group (LSE:TBCG)

£45.65

£89.60

49.1%

SigmaRoc (AIM:SRC)

£1.25

£2.42

48.4%

PageGroup (LSE:PAGE)

£2.242

£4.43

49.4%

LSL Property Services (LSE:LSL)

£2.84

£5.55

48.8%

Likewise Group (AIM:LIKE)

£0.27

£0.52

48%

Hollywood Bowl Group (LSE:BOWL)

£2.53

£4.87

48%

Gym Group (LSE:GYM)

£1.47

£2.93

49.8%

Essentra (LSE:ESNT)

£0.983

£1.95

49.6%

Burberry Group (LSE:BRBY)

£11.40

£21.24

46.3%

AstraZeneca (LSE:AZN)

£112.48

£223.60

49.7%

Click here to see the full list of 55 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

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

Overview: Burberry Group plc is a luxury goods company involved in manufacturing, retail, and wholesale operations under the Burberry brand across various regions including Asia Pacific, Europe, the Middle East, India, Africa, and the Americas; it has a market cap of £4.08 billion.

Operations: The company’s revenue is primarily derived from its Retail/Wholesale segment, which accounts for £2.40 billion, and Licensing, contributing £67 million.

Estimated Discount To Fair Value: 46.3%

Burberry Group is trading at £11.4, significantly below its estimated fair value of £21.24, representing a 46.3% discount based on discounted cash flow analysis. Despite recent challenges with retail revenue declining to £433 million from £458 million, Burberry’s earnings are projected to grow by 49.41% annually and surpass the UK market’s average growth rate over the next three years, indicating potential for improved profitability and valuation recovery.

LSE:BRBY Discounted Cash Flow as at Sep 2025

LSE:BRBY Discounted Cash Flow as at Sep 2025

Overview: MJ Gleeson plc operates in the United Kingdom, focusing on house building and land promotion and sales, with a market cap of £224.97 million.

Operations: The company’s revenue is primarily derived from Gleeson Homes, contributing £348.25 million, and Gleeson Land, which adds £17.57 million.

Estimated Discount To Fair Value: 36.3%

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