UK Stocks That May Be Trading Below Intrinsic Value In October 2025

Simply Wall St · 10/03/2025 06:07

As the United Kingdom's FTSE 100 index experiences turbulence due to weak trade data from China, investors are closely monitoring market conditions that have led to a dip in major indices. In this environment, identifying stocks that may be trading below their intrinsic value becomes crucial for those looking to make informed investment decisions.

Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom

Name Current Price Fair Value (Est) Discount (Est)
SigmaRoc (AIM:SRC) £1.19 £2.32 48.6%
Pinewood Technologies Group (LSE:PINE) £4.06 £7.80 47.9%
Pan African Resources (AIM:PAF) £0.87 £1.67 47.8%
PageGroup (LSE:PAGE) £2.306 £4.44 48.1%
On the Beach Group (LSE:OTB) £2.22 £4.27 48.1%
Likewise Group (AIM:LIKE) £0.265 £0.52 49%
Hollywood Bowl Group (LSE:BOWL) £2.51 £4.91 48.9%
Gym Group (LSE:GYM) £1.492 £2.93 49%
Gateley (Holdings) (AIM:GTLY) £1.29 £2.56 49.6%
AstraZeneca (LSE:AZN) £124.54 £238.70 47.8%

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

We're going to check out a few of the best picks from our screener tool.

Anglo Asian Mining (AIM:AAZ)

Overview: Anglo Asian Mining PLC, along with its subsidiaries, operates gold, silver, and copper producing properties in the Republic of Azerbaijan and has a market cap of £240.12 million.

Operations: The company's revenue from mining operations is $67.14 million.

Estimated Discount To Fair Value: 27.4%

Anglo Asian Mining appears undervalued based on cash flows, trading 27.4% below its estimated fair value of £2.89, with a current price of £2.1. The company reported significant revenue growth, with sales increasing to US$40.93 million for H1 2025 from US$13.37 million a year ago and turning profitable with a net income of US$4.66 million compared to a previous loss. Additionally, the Demirli copper mine's commencement is expected to boost production significantly in the coming years.

AIM:AAZ Discounted Cash Flow as at Oct 2025
AIM:AAZ Discounted Cash Flow as at Oct 2025

Man Group (LSE:EMG)

Overview: Man Group Limited is a publicly owned investment manager with a market cap of £2.05 billion, focusing on providing diversified investment solutions.

Operations: The company generates revenue of $1.31 billion from its Investment Management Business segment.

Estimated Discount To Fair Value: 46.1%

Man Group is currently trading at £1.83, significantly below its estimated fair value of £3.39, indicating it may be undervalued based on cash flows. Despite a challenging half-year with revenue dropping to $604 million and net income falling to $51 million, earnings are projected to grow substantially by 36% annually over the next three years, outpacing the UK market growth rate. Recent share buybacks and dividend increases further underscore management's commitment to shareholder returns.

LSE:EMG Discounted Cash Flow as at Oct 2025
LSE:EMG Discounted Cash Flow as at Oct 2025

Just Group (LSE:JUST)

Overview: Just Group plc offers retirement income products and services to individuals, homeowners, and corporate clients in the United Kingdom, with a market cap of £2.20 billion.

Operations: The company generates revenue through its diverse range of retirement income products and services tailored for individuals, homeowners, and corporate clients in the UK.

Estimated Discount To Fair Value: 20.2%

Just Group's current trading price of £2.12 is well below its estimated fair value of £2.65, highlighting potential undervaluation based on cash flows. Despite a volatile share price and a decrease in profit margins from 4.6% to 2.8%, earnings are expected to grow significantly at 21.38% annually, surpassing the UK market average growth rate. The recent acquisition agreement by Brookfield Wealth Solutions Ltd., valued at £2.3 billion, further reflects investor confidence in Just Group's future prospects.

LSE:JUST Discounted Cash Flow as at Oct 2025
LSE:JUST Discounted Cash Flow as at Oct 2025

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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.