In recent weeks, the UK market has faced challenges, with the FTSE 100 index slipping due to weak trade data from China and falling commodity prices impacting major companies. Amid these uncertainties, identifying undervalued stocks can present opportunities for investors seeking value in a fluctuating market environment.
Name
Current Price
Fair Value (Est)
Discount (Est)
Victorian Plumbing Group (AIM:VIC)
£0.668
£1.18
43.6%
Stelrad Group (LSE:SRAD)
£1.63
£2.64
38.2%
PageGroup (LSE:PAGE)
£2.616
£4.68
44.1%
NIOX Group (AIM:NIOX)
£0.696
£1.09
36.4%
Morgan Advanced Materials (LSE:MGAM)
£2.06
£3.29
37.4%
Moonpig Group (LSE:MOON)
£2.07
£4.03
48.7%
Mitie Group (LSE:MTO)
£1.47
£2.64
44.4%
Kromek Group (AIM:KMK)
£0.052
£0.09
42%
Coats Group (LSE:COA)
£0.734
£1.19
38.1%
Advanced Medical Solutions Group (AIM:AMS)
£2.02
£3.50
42.2%
Click here to see the full list of 21 stocks from our Undervalued UK Stocks Based On Cash Flows screener.
Here we highlight a subset of our preferred stocks from the screener.
Overview: Advanced Medical Solutions Group plc develops, manufactures, and distributes products for the surgical, woundcare, and wound-closure markets across the UK, Germany, Europe, the US, and internationally with a market cap of £435.29 million.
Operations: The company’s revenue is derived from two main segments: Surgical, contributing £135.77 million, and Woundcare, generating £41.75 million.
Estimated Discount To Fair Value: 42.2%
Advanced Medical Solutions Group is trading at a significant discount, 42.2% below its estimated fair value of £3.5, with a current price of £2.02. Despite lower profit margins this year (4% versus last year’s 12.6%), earnings are expected to grow significantly at 31.7% annually over the next three years, outpacing the UK market average of 14.5%. The recent appointment of Juliet Thompson as Non-Executive Director and Audit Committee Chair adds valuable expertise in finance and healthcare sectors to the board.
AIM:AMS Discounted Cash Flow as at Aug 2025
Overview: Mitie Group plc, along with its subsidiaries, offers facilities management and professional services in the UK and internationally, with a market cap of £1.92 billion.
Operations: The company’s revenue segments include Communities (£869.80 million), Business Services (£2.24 billion), and Technical Services (£1.98 billion).
Estimated Discount To Fair Value: 44.4%
Mitie Group is trading at a substantial discount, with its share price of £1.47 below the estimated fair value of £2.64. Despite a slower revenue growth forecast of 6% annually, its earnings are expected to grow significantly at 20.4% per year, surpassing the UK market average. Recent developments include an 8% increase in dividends and executive changes, while ongoing discussions with Marlowe plc could impact future strategic directions for Mitie Group.
LSE:MTO Discounted Cash Flow as at Aug 2025
Overview: Stelrad Group PLC manufactures and distributes radiators across the United Kingdom, Ireland, Europe, Turkey, and internationally with a market cap of £207.58 million.
Operations: The company’s revenue segment is primarily derived from the manufacture and distribution of radiators, totaling £283.94 million.
Estimated Discount To Fair Value: 38.2%
Stelrad Group is trading at £1.63, notably below its estimated fair value of £2.64, suggesting potential undervaluation based on discounted cash flows. Despite a high debt level and profit margins declining from 5.3% to 1.8%, earnings are forecast to grow significantly at 37.52% annually, outpacing the UK market average of 14.5%. However, recent results showed a net loss of £3.45 million for H1 2025, yet the company increased its interim dividend by 2%.
LSE:SRAD Discounted Cash Flow as at Aug 2025
Gain an insight into the universe of 21 Undervalued UK Stocks Based On Cash Flows by clicking here.
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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 AIM:AMS LSE:MTO and LSE:SRAD.
This article was originally published by Simply Wall St.
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