UK Stocks That Might Be Trading Below Their Estimated Value

editorial-team@simplywallst.com (Simply Wall St)

Wed, Apr 16, 2025, 2:37 AM 4 min read

The United Kingdom’s stock market has recently experienced some turbulence, with the FTSE 100 and FTSE 250 indices closing lower amid weak trade data from China, highlighting concerns about global economic recovery. In such conditions, identifying stocks that might be trading below their estimated value becomes crucial for investors seeking opportunities amidst broader market challenges.

Click here to see the full list of 54 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Overview: Brickability Group Plc, with a market cap of £190.41 million, supplies, distributes, and imports building products in the United Kingdom through its subsidiaries.

Operations: The company’s revenue is primarily derived from Bricks and Building Materials (£380.56 million), followed by Importing (£90.55 million), Contracting (£88.22 million), and Distribution (£63.21 million).

Estimated Discount To Fair Value: 21.8%

Brickability Group, trading at £0.59, appears undervalued based on discounted cash flow analysis with a fair value estimate of £0.76, offering a potential upside of over 20%. While earnings are expected to grow significantly at 39.6% annually over the next three years—outpacing the UK market—the dividend yield of 5.66% is not well covered by earnings. Despite revenue growth forecasts exceeding the market average, profit margins have declined from last year’s figures.

• The growth report we’ve compiled suggests that Brickability Group’s future prospects could be on the up.

• Click here to discover the nuances of Brickability Group with our detailed financial health report.

Overview: Restore plc, with a market cap of £293.02 million, offers services to offices and workplaces in both the public and private sectors primarily across the United Kingdom.

Operations: The company’s revenue segments include Datashred (£36 million), Technology (£36.10 million), Harrow Green (£35.30 million), and Information Management (£167.90 million).