UK Stocks Priced Below Estimated Value In January 2026

The UK stock market has been experiencing some turbulence, with the FTSE 100 index recently closing lower due to weak trade data from China, highlighting challenges in global economic recovery. Despite these broader market pressures, certain stocks are currently priced below their estimated value, presenting potential opportunities for investors who focus on fundamentals and long-term growth prospects.

Click here to see the full list of 61 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Let’s take a closer look at a couple of our picks from the screened companies.

Overview: ASA International Group PLC operates as a microfinance institution in Asia and Africa, with a market cap of £195 million.

Operations: The company’s revenue segments include $40.66 million from South Asia, $65.82 million from East Africa, $65.29 million from West Africa, and $34.92 million from South East Asia.

Estimated Discount To Fair Value: 11.3%

ASA International Group appears undervalued based on cash flows, trading at £1.95 against a fair value estimate of £2.20. Despite high volatility, its earnings have grown by 121.7% in the past year and are projected to grow annually by 20.83%, outpacing the UK market’s 13.9%. Recent leadership changes, including appointing Geert Embrechts as CFO, aim to bolster long-term growth strategies amidst strong client demand and loan portfolio expansion forecasts for 2025 exceeding expectations of US$48.3 million profit.

• Our comprehensive growth report raises the possibility that ASA International Group is poised for substantial financial growth.

• Dive into the specifics of ASA International Group here with our thorough financial health report.

Overview: Burberry Group plc, along with its subsidiaries, operates in the manufacturing, retail, and wholesale of luxury goods under the Burberry brand across regions including Asia Pacific, Europe, the Middle East, India, Africa, and the Americas with a market cap of £4.78 billion.

Operations: The company’s revenue is primarily derived from its Retail/Wholesale segment, which accounts for £2.34 billion, complemented by £66 million from Licensing.