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FTSE 100 jumps 162 points to 10,466 Brent crude futures fall then rise UK economy contracts 0.1% in April Housebuilders show strong recovery

4.17pm: SpaceX and US consumer confidence

The Footsie is heading towards sealing its strongest session in a while, with a gain over over 160 points currently.

British Aiways owner IAG is top of the leaderboard, up 6.7%, followed by miners and banks.

Both the FTSE 100 and FTSE 250 are up over 1.5%, with mid-cap gains led by miners, air travel stocks and Ceres Power.

Oil prices are softening again, with Brent crude down below $85 a barrel now, 3.5% lower on the day and $10 a barrel below highs at the start of the week.

The SpaceX indicative price is still falling but remains well above the issue price.

Latest was $160 apiece, which would be around a 19% premium to the IPO price.

Elsewhere, the US consumer sentiment has improved this month, with the University of Michigan consumer sentiment index rose to 48.9 in June from 44.8 in May, above the consensus forecast of 46.0.

Grace Zwemmer at Oxford Economics says: "Easing gas prices helped lift consumer sentiment this month. However, consumers are still broadly anxious about the health of the economy.

"Both measures of inflation expectations ticked down in June but remain higher than their pre-war levels. Stability in inflation expectations could help the Federal Reserve view the oil price shock to inflation as a one-off."

3.41pm: SpaceX indicated opening price is higher, but falling

The indicative opening price of SpaceX is falling, but still well above the $135 issue price.

Trading may begin around 12:30pm ET (5.30pm UK) or maybe earlier.

Shares are indicated to open at just $168.75 each, a gain of around 25%.

First it was a $174, then $171 then $170, and now below that.

An extra nugget within the SpaceX story is that Elon Musk, who owns about 42% of SpaceX, is going to become the first dollar trillionaire if the price is much above the issue price.

3.21pm: Iran deal based on performance, says White House insider

A White House official is leaking more information on the Iran deal, presumably to counter the "fake news" statements from Tehran.

Reports citing a senior US administration official stress that any sanctions relief would be strictly conditional on Tehran meeting its commitments.

According to the official, the deal would immediately reopen the Strait of Hormuz, easing the blockage for global energy.

There will be "no money" released to Tehran "until they perform", the reports say, suggesting sanctions relief and access to frozen funds would be tied to verified compliance.

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The official also said Iran's nuclear material would be "destroyed and removed" and that the country's nuclear programme would be dismantled under the agreement. In addition, the deal would require Iran to cease funding terrorist groups.

What do markets make of it? Brent crude is up above $86 a barrel again, down 1.1% on the day.

The FTSE is striding higher, led by coppper miners Antofagasta and Anglo American, sandwiching British Airways owner IAG, all up over 5.5%.

Next are banks, precious metals miners, and Rolls-Royce. SpaceX investors Scottish Mortgage is up 3.6%, while fellow big tech investor Polar Capital Tech Trust is up 4.3%, catching up with last night's gains.

There are only nine London blue-chjp names in the red, with losses for BP and Shell trimmed slightly, to 2.2% and 1.9%.

3.10pm: SpaceX price expected at 29% premium

Newswire reports suggest the SpaceX IPO attracted more than $350 billion of total investor demand, including over $250 billion from institutional investors alone, making it one of the most heavily oversubscribed offerings in market history.

Institutional allocations appear to have been skewed towards long-term investors, with around 70% of shares sold to institutions allocated to long-only funds and sovereign wealth fundsm, Reuters reported.

The reports confirm that retail investors received about 20% of the shares sold in the IPO, while lower than the mooted 30% is far larger allocation than is typical for a US mega-cap flotation.

According to pre-market indications, SpaceX shares are set to open at around $174, compared with the IPO price of $135, implying a gain of almost 29% on debut.

If that pricing holds, SpaceX's market value would surge well above the $1.75 trillion valuation established in the offering, nearer $2.3 trillion, just shy of Amazon's $2.5 trillion market cap.

2.52pm: Volatile US open after Trump slams Iran

US stocks opened higher but gains were immediately wiped out after some confusion emerged about the purported Iran peace deal.

The Nasdaq has dropped 0.7%, the S&P is down 0.3% and the Dow Jones is just above flat, having opened up around 0.6% higher in initial trades.

President Donald Trump posted on social media that terms Iran leaked out "have NOTHING to do with the terms that were agreed to, in writing". He says Tehran's statement is "dishonourable" and "bears no relation to the truth" and that "they better get their act together, and FAST".

Oil prices have also spiked back to where they were at midnight, with Brent back up to $89 a barrel.

2.10pm: Scottish Mortgage and other trusts that have SpaceX stakes

Nasdaq has announced that the IPO of SpaceX is to be released for stock price quotes at 9:50am Eastern Time (2.50pm London time).

As well as the retail investors excited about the IPO, there are also several investment trusts that have been long backers of the rocket and satellite company, such as Scottish Mortgage Investment Trust PLC (LSE:SMT), which invested as long ago as 2018.

SMT's stake was 21% of its portfolio value, according to an update last week.

Edinburgh Worldwide Investment and Baillie Gifford US Growth Trust, also managed by Baillie Gifford, have sizeable stakes, along with the Schiehallion Fund Ltd.

Schiehallion said it had 14.5% of its assets in SpaceX, Baillie Gifford USA 16.5% and EWI 22%.

Also, Google parent Alphabet owns a stake of around 4.9% of the $1.77 trillion company, having bought in over a decade ago.

Existing backers like Scot Mort and Alphabet are subject to a lockup period after the IPO, liquidity limits and a potential tax hit on an outright sale.

There is a staggered lock-up structure, with expiration at 180 days for general insiders, while Musk and other significant stakeholders subject to a longer 366-day lock-up. Musk is not expected to sell shares at this point, though.

1.44pm: Market scepticism recovering

Oil prices are creeping up again. Brent crude, having fallen from $95 on Thursday night to almost $86 a barrel this morning, is now back up at almost $88.

A report from Axios suggested that both sides have agreed the text, which has been cleared at high levels in Iran but may still lack approval from Supreme Leader Mojtaba Khamenei.

The two sides are said to have agreed the text of a proposed memorandum that would immediately reopen the Strait of Hormuz, extend the ceasefire by 60 days and provide limited sanctions relief in exchange for Iranian commitments on its nuclear programme.

If signed, the agreement mediated by Qatar and Pakistan would be known as the Islamabad agreement.

"Markets are taking Trump’s latest declaration with a degree of caution", says market analyst Fawad Razaqzada at Forex.com.

Economist Kallum Pickering at Peel Hunt notes that President Trump has for the past two months "repeatedly signalled that a deal between the US and Iran to end the conflict and re-open the Strait of Hormuz is imminent".

"Each time, however, negotiations have broken down, or Iran has accused the US of making unjustified claims of a breakthrough."

After last night's announcement, "financial markets appear to be reacting as if a deal is underway"... though "let me emphasise, we have seen this before only for no breakthrough to emerge in the end".

Says Pickering: "If a deal is indeed reached, a big if, expect markets to raise expectations for growth in major economies as inflation worries ease, with expectations for further central bank rate hikes curtailed."

Razaqzada notes that while Trump's claim to have "ended the war with Iran" triggered an immediate risk-on reaction, with equities and bonds in demand as oil fell, "the follow-through remains surprisingly restrained for what would be a significant geopolitical breakthrough".

He adds that "there are still important hurdles to overcome", with Iranian officials have not publicly endorsed the reported framework, and questions remain over whether Tehran will seek additional concessions before signing any deal

1.07pm: US stocks to extend gains

Wall Street is heading for a firmer open, with futures ticking higher as investors weigh President Donald Trump’s sudden shift on Iran and turn attention to a blockbuster market debut.

Dow Jones futures are up over 0.7%, while those for the S&P 500 and the Nasdaq futures are up nearer 0.6%, all extending the strong gains from last night.

That rally came after Trump said US military strikes on Iran were "cancelled" and suggested a peace deal could be close, as "discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved".

The Nasdaq jumped 2.5%, the Dow finished up 1.9% and the S&P gained 1.8% as risk appetite returned.

Today, geopolitics looks set to fade into the background, with all eyes are on the much-anticipated SpaceX IPO, for which many are holding their breath.

12.34pm: Fall in UK GDP 'won't alter BoE outlook', says Barclays

UK monthly GDP contracting 0.1% in April will not alter the Bank of England's thinking much, says economist Jack Meaning at Barclays.

The monthly contraction was in line with other soft Q2 data, he points out, with PMI data weakening, particularly in services, as well as weaker spending signals from Barclays spend trends data.

"We continue to expect the impact of the Middle East conflict to feed into more subdued activity in the next few months," he adds, retain his expectation of 0.1% quarter-on-quarter growth in Q2.

"For the Bank of England, we think the data today will validate their expectation of Q2 growth of 0.1% q/q heading into the meeting next week (18 June), and won't alter their outlook for GDP growth.

"We now look to BoE​/​Ipsos inflation expectations data (12 June), the May inflation data (17 June) and April labour market release (18 June) for any surprises.

"We think the bar for coming data to change the outcome of the June meeting is high, although it may, at the margin, affect the vote split and tone of individual paragraphs."

11.54am: Shell, BP and BAE weigh

Weighing on the index today are falls for energy and defence groups, some heavyweights among only 16 London blue-chips that are in the red currently.

Oil giants BP and Shell are down 4.4% and 3.25%. Defence group BAE Systems is down 1.9%, followed by energy suppliers Centrica and SSE, down 1.9% and 1%.

Next are Sage Group, Bunzl, National Grid, LSE and British American Tobacco.

11.22am: SpaceX UK investors own almost $364 million of the shares

Some more precise details are available on the scale of UK retail participation in SpaceX's record-breaking IPO.

Marex, which operated the UK retail offer through the Winterflood Retail Access Platform, said 2,696,175 shares were allocated to UK retail investors at the IPO price of $135 (£100.65) per share.

This means UK investors own almost $364 million of SpaceX shares.

Investors who applied for up to $2,700 worth of stock received their allocations in full, while larger applications were scaled back. No investor received more than 1,000 shares, Marex said.

Overall, 61% of retail investors received a full allocation, highlighting both the strong demand for the flotation and the relatively generous treatment of smaller investors.

As well as the $75 billion of shares sold in the IPO, underwriters also have the option to sell a further 83.3 million shares.

11.04am: SpaceX touching down

SpaceX’s much-anticipated IPO "has been a roaring success", says Kathleen Brooks at XTB, with huge demand for the shares.

The IPO has raised $75 billion, making it the largest ever, valuing the company at $1.77 trillion, the seventh largest firm on the US stock market.

Trading in New York's Nasdaq begins later, with the company worth more than JP Morgan, Meta, Eli Lilly, Berkshire Hathaway and Tesla, Brooks notes.

It's free float of $75 billion is more on a par with the market caps of Airbnb, Ross Stores and General Motors, though.

"Today comes the real test," says Brooks, as the shares trade on the open market for the first time.

"After Thursday’s stock market rally the scene is set for a strong start, but any sign of weakness on the main US tech exchange could send shivers across financial markets."

She notes reports that the allocation of shares to the retail market has been lower than originally reported at roughly 20% versus the mooted 30%.

"This is still far higher than the usual allocation to the retail trading community and suggests that institutional demand far outstripped supply.

"This signals that everyone wants a slice of SpaceX right now, which could lead to more shares coming to market, should the underwriters exercise their right to sell additional shares in the coming weeks."

10.30am: More market movers

The FTSE 100 has pared some of the morning's gains, and is now 141 points up at 10,445.02. Here's a look at some of the other stocks making big moves today.

Kier Group PLC (LSE:KIE) rose 3.8% after securing a £140 million contract extension with South West Water, part of Pennon Group PLC (LSE, OTC), running through to 2028. The deal extends a 20-year partnership and keeps Kier as sole contractor on the network services alliance. Read more

BSF Enterprise PLC (LSE:BSFA, OTC:BSFAF) plunged 42% after its first T-Rex Leather handbag failed to meet its reserve at a Paris auction. The €150,000 top bid fell short, leaving the item unsold. The company has now withdrawn it for private sale, but says interest in its bio-leather technology remains strong, with ongoing talks in the sportswear and automotive sectors. Read more

Virgin Wines UK PLC (AIM:VINO) fell 14% to 28.8p after warning of a swing to a £1.5 million pre-tax loss for 2026 despite modest revenue growth. Higher duties and weaker consumer confidence weighed on profits. The group still highlighted improving sales momentum and rising customer acquisition, alongside plans for a new £700,000 warehouse investment funded from cash reserves. Read more

MedPal AI plc (AIM:MPAL) surged 25% to a three-month high around 3.88p after UK approval of Novo Nordisk’s oral weight-loss drug boosted sentiment around its new clinic model. The company says the timing is ideal, with its New Health service launching just as demand for GLP-1 treatments expands. It expects oral options to widen uptake beyond injectables, supported by strong US prescription trends. Read more

Cizzle Biotechnology Holdings PLC (LSE:CIZ) shares jumped 10.9% to 3.05p after the company secured a US patent covering methods used to detect its CIZ1B lung cancer biomarker. The patent strengthens its position in a key market and supports plans with partner Cizzle Bio Inc to commercialise the test across North America and the Caribbean. Read more

9.20am: Footsie bounces higher

The FTSE 100 has extended its gains as the morning progresses, now up 148 points at 10,451.84 for a gain of close to 1.5%.

BA-owner International Consolidated Airlines Group SA (LSE:IAG) is now leading the pack, with a 5.5% gain, while Rolls-Royce Holdings PLC (LSE:RR.) has edged into second place, up 4.5%.

"Global equities are ending the week with a powerful relief rally as markets price a rising chance of a US-Iran diplomatic breakthrough," commented Tickmill Group's Patrick Munnelly. "President Trump said the US is nearing a deal with Tehran, raising hopes that a conflict which has driven volatility for more than three months could be moving toward resolution."

Munnelly pointed out that oil is the clearest expression of the shift in risk premia. Brent has fallen another 2% to around $88.50/bbl after President Trump softened military threats and pointed to high-level talks with Iranian officials.

"A formal signing ceremony could reportedly take place as soon as this weekend in Europe, with JD Vance expected to attend," he added. "The market is moving from pricing escalation risk to pricing de-escalation relief. That does not remove geopolitical uncertainty, but it materially reduces the immediate threat of a sustained energy shock."

9am: Housebuilders perk up

UK housebuilders surged on Friday as investors warmed to the prospect of lower interest rates and easing tensions in the Middle East.

Persimmon PLC (LSE:PSN) rose 3.9%, Barratt Redrow PLC (LSE:BTRW) gained 3.7%,Taylor Wimpey PLC (LSE:TW.) added 2.9%, while Vistry Group PLC (LSE:VTY) led the sector with a 5.1% jump.

The gains came despite data showing the UK economy shrank by 0.1% in April. Instead of spooking markets, the weaker GDP reading fuelled expectations that the Bank of England may cut rates sooner rather than later to support growth. The BoE's rate-setting committee meets next week.

Hopes of a peace agreement in the Middle East also lifted sentiment. Oil prices retreated on the prospect of fewer supply disruptions, easing inflation concerns and reducing pressure on policymakers to keep rates higher for longer.

Government bond prices rose, and yields fell as investors increasingly priced in rate cuts rather than hikes. For housebuilders, cheaper borrowing costs could mean more affordable mortgages and stronger demand, helping a sector that has struggled under the weight of higher interest rates.

8.15am: Footsie bounces at the open

The FTSE 100 jumped at the open, gaining 89 points to 10,392.88 in the first 15 minutes of trading on hopes that an end to the conflict in the Middle East is near.

Antofagasta PLC (LSE:ANTO) led the gainers, with a 5.3% gain as copper prices surged on the potential end to the war. Fresnillo PLC (LSE:FRES) was close behind, up 4.9%, while housebuilder Persimmon PLC (LSE:PSN) rose 4.5% after a report suggesting that recent buying activity had been brisk. International Consolidated Airlines Group SA (LSE:IAG) added 4.4% as oil prices fell below $90 a barrel.

BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) have come under pressure due to the lower oil prices, down 3.3% and 2.4% respectively.

"The FTSE100 rode on the coattails of improved global investor sentiment, with a strong open which built on a resilient performance in the previous session," commented interactive investor's Richard Hunter. "The gains came despite the oil majors following the oil price south, with a broad rally which included the housebuilders after a report suggesting that recent buying activity had been brisk."

While markets staged a strong recovery on hopes that the Middle East conflict could finally be coming to an end, Hunter noted that for the US there is only one show in town today.

"The highly anticipated SpaceX IPO will debut today after what has been an unusual run-up," Hunter said. "The price of $135 per share was announced in advance, Elon Musk reportedly negotiated special deals with Wall Street advisors, and the percentage of shares available to retail investors is much higher than would normally be the case. The offering will raise $75 billion for the company, which will be valued at $1.75 trillion."

7.55am: Fickle markets

Markets look set for a positive end to the week after President Trump made a massive about-turn on his plan to "hit Iran hard."

It's not the first time he's indicated a peace deal is at hand. According to a CNBC review of the president’s social media posts and public remarks, Trump has signalled or stated outright more than 30 times that a deal is nearly at hand. CNN puts it higher at 38 times since before April's ceasefire was announced.

"The past 24 hours has seen a sharp reversal in the trajectory of the US–Iran conflict, as mounting hopes of a deal have seen Brent crude fall -1.62% overnight, leaving it on track for a 3-month low of $88.80/bbl. So that’s led to a huge rally across bonds and equities, as lower oil prices have eased fears about a prolonged stagflationary shock," commented Deutsche Bank's Jim Reid.

"With oil prices coming down sharply, alongside hopes that the Strait of Hormuz will reopen, that’s seen investors price out the chance of rapid rate hikes this year. Indeed, as we go to press, markets are now pricing in just a 77% chance of a Fed rate hike by December, having been fully priced in earlier this week."

7.35am: Middle East conflict hits the economy

The UK economy hit a small bump in April, with GDP slipping 0.1% after solid growth in February and March. The monthly decline was largely down to a 0.2% drop in the services sector, while construction edged higher and production was flat.

The bigger picture, though, remains more encouraging. The economy expanded by 0.7% over the three months to April, marking the fifth consecutive period of three-month growth. Services continued to do much of the heavy lifting, with information and communication performing particularly well, alongside retail and professional services. Construction also made a strong contribution.

There were some headwinds. Businesses across sectors said conflict in the Middle East affected trading conditions, with some reporting weaker demand and higher energy and fuel costs.

Even so, GDP was still 1.2% higher than a year earlier, suggesting the UK's growth story remains intact despite a softer start to the second quarter.

FTSE 100 pre-market open

Stocks in London are expected to open higher after US President Donald Trump backtracked on a threat to "hit Iran hard" as he hinted at a major breakthrough in talks.

The FTSE 100 has been called 81 points higher, after closing Thursday's session 49 points up at 10,304. Brent crude has fallen 2% to $88.58 a barrel, while US WTI futures are also lower.

"What’s unbelievable is that after three months of this nonsense, markets still move on words that have little substance," commented Swissquote's Ipek Ozkardeskaya. "This morning, US crude is testing the $85pb level to the downside, its lowest level since the early days of the Iranian conflict. Yet there is no confirmation from Iranian media, and there is nothing to suggest that this time will be the charm."

Overnight, US stocks staged a powerful comeback, with investors piling back into risk assets after President Trump said he had cancelled planned military strikes against Iran and suggested a diplomatic agreement could be close at hand.

The tech-heavy Nasdaq led the advance, jumping 2.5% as traders reversed much of Wednesday's sharp sell-off. The Dow Jones Industrial Average surged 1.9%, and the S&P 500 climbed 1.8%.

As Friday trade draws to a close in Asia, Tokyo's Nikkei is up 2.9%, Hong Kong's Hang Seng is 1.7% higher, and Shanghai's SSE Composite has gained 1.2%. In Seoul, the Kospi has rallied 4.4% after earlier trading 8% higher as foreign investors shifted to net buying for the first time in 25 trading days. Sydney's ASX 200 closed 2% firmer.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

The United Kingdom's stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines amid weak trade data from China, highlighting concerns over global economic recovery. In such a climate, identifying undervalued stocks can be crucial for investors looking to capitalize on potential growth opportunities that may arise as market conditions stabilize.

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

Name Current Price Fair Value (Est) Discount (Est) Yü Group (AIM:YU.) £16.85 £30.76 45.2% XP Power (LSE:XPP) £12.58 £23.37 46.2% Taylor Wimpey (LSE:TW.) £0.8856 £1.60 44.5% Pinewood Technologies Group (LSE:PINE) £2.135 £4.08 47.6% Morgan Advanced Materials (LSE:MGAM) £2.07 £3.71 44.1% Lords Group Trading (AIM:LORD) £0.1725 £0.31 44.3% James Fisher and Sons (LSE:FSJ) £4.62 £9.13 49.4% Eurocell (LSE:ECEL) £1.10 £2.10 47.5% Entain (LSE:ENT) £5.792 £10.67 45.7% Airtel Africa (LSE:AAF) £3.516 £6.35 44.7%

Click here to see the full list of 59 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Mitie Group

Overview: Mitie Group plc, with a market cap of £2.22 billion, provides facilities management and professional services in the United Kingdom and internationally through its subsidiaries.

Operations: The company's revenue is primarily derived from Business Services (£2.43 billion) and Technical Services (£2.04 billion).

Estimated Discount To Fair Value: 25.6%

Mitie Group appears undervalued based on discounted cash flow analysis, trading at £1.73, below the estimated future value of £2.33. With earnings forecasted to grow at 30.1% per year, surpassing the UK market average, Mitie is positioned for significant profit growth despite its high debt levels and unstable dividend history. Recent executive changes aim to strengthen operational leadership as the company anticipates double-digit revenue and operating profit growth for 2026 driven by public sector projects and winter services.

According our earnings growth report, there's an indication that Mitie Group might be ready to expand. Dive into the specifics of Mitie Group here with our thorough financial health report.LSE:MTO Discounted Cash Flow as at Apr 2026

S&U

Overview: S&U plc operates in the United Kingdom offering motor, property bridging, and specialist finance services with a market cap of £252.74 million.

Operations: The company generates revenue from motor finance (£70.07 million) and property bridging finance (£15.82 million) segments in the UK.

Estimated Discount To Fair Value: 27.5%

S&U is trading at £20.80, significantly below its estimated future cash flow value of £28.70, suggesting it may be undervalued. Earnings are forecast to grow at 17.6% annually, outpacing the UK market's average growth rate, while revenue is expected to increase by 22.4% per year. Despite a high debt level and an unstable dividend history, S&U recently announced a higher interim dividend of 35 pence per share for March 2026 distribution.

Story Continues

Our comprehensive growth report raises the possibility that S&U is poised for substantial financial growth. Click to explore a detailed breakdown of our findings in S&U's balance sheet health report.LSE:SUS Discounted Cash Flow as at Apr 2026

Trustpilot Group

Overview: Trustpilot Group plc operates an online review platform for businesses and consumers across the United Kingdom, North America, Europe, and internationally, with a market cap of £815.95 million.

Operations: The company generates revenue of $261.05 million from its Internet Information Providers segment.

Estimated Discount To Fair Value: 38.2%

Trustpilot Group is trading at £2.07, well below its estimated future cash flow value of £3.35, indicating potential undervaluation. Earnings are projected to grow significantly at 50.4% annually, surpassing the UK market's average growth rate, with revenue expected to rise by 15.3% per year. Despite recent regulatory challenges in Italy and a volatile share price, Trustpilot's strategic share buyback program and leadership changes may enhance financial stability and investor confidence moving forward.

Our expertly prepared growth report on Trustpilot Group implies its future financial outlook may be stronger than recent results. Navigate through the intricacies of Trustpilot Group with our comprehensive financial health report here.LSE:TRST Discounted Cash Flow as at Apr 2026

Turning Ideas Into Actions

Dive into all 59 of the Undervalued UK Stocks Based On Cash Flows we have identified here. Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

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Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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 LSE:MTO LSE:SUS and LSE:TRST.

This article was originally published by Simply Wall St.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

The United Kingdom's stock market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China, highlighting concerns over global economic recovery. Amidst these fluctuations, investors often seek undervalued stocks that present potential opportunities for growth by trading below their intrinsic value.

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

Name Current Price Fair Value (Est) Discount (Est) Windar Photonics (AIM:WPHO) £0.305 £0.59 48.5% Victorian Plumbing Group (AIM:VIC) £0.672 £1.25 46.1% Trustpilot Group (LSE:TRST) £1.871 £3.50 46.6% Topps Tiles (LSE:TPT) £0.347 £0.67 48.4% Taylor Wimpey (LSE:TW.) £0.8664 £1.60 45.8% Pinewood Technologies Group (LSE:PINE) £2.12 £4.08 48% Hochschild Mining (LSE:HOC) £5.725 £10.56 45.8% Eurocell (LSE:ECEL) £1.115 £2.12 47.4% Entain (LSE:ENT) £5.396 £10.61 49.2% Accsys Technologies (AIM:AXS) £0.608 £1.15 47.1%

Click here to see the full list of 60 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Serica Energy

Overview: Serica Energy plc, along with its subsidiaries, focuses on identifying, acquiring, and exploiting oil and gas reserves in the United Kingdom, with a market cap of £1.07 billion.

Operations: Serica Energy generates its revenue from the identification, acquisition, and exploitation of oil and gas reserves within the United Kingdom.

Estimated Discount To Fair Value: 18.8%

Serica Energy is trading at £2.74, below its estimated cash flow value of £3.37, indicating it may be undervalued based on discounted cash flows by 18.8%. Despite a net loss of US$51.82 million in 2025, Serica's acquisition of the Greater Laggan Area enhances growth prospects and production capacity, with current production over 50,000 boepd. However, revenue growth forecasts are slower than desired and dividends remain unsustainably covered by earnings or free cash flows.

Our expertly prepared growth report on Serica Energy implies its future financial outlook may be stronger than recent results. Navigate through the intricacies of Serica Energy with our comprehensive financial health report here.AIM:SQZ Discounted Cash Flow as at Mar 2026

AstraZeneca

Overview: AstraZeneca PLC is a biopharmaceutical company engaged in the discovery, development, manufacture, and commercialization of prescription medicines, with a market cap of approximately £221.82 billion.

Operations: The company generates revenue primarily from its Pharmaceuticals segment, which accounted for $58.74 billion.

Estimated Discount To Fair Value: 41.1%

AstraZeneca's current trading price of £143.02 is significantly below its estimated future cash flow value of £242.86, highlighting potential undervaluation. Despite high debt levels, AstraZeneca's earnings are projected to grow faster than the UK market at 12.8% annually, supported by recent positive clinical trial results for Tozorakimab in COPD treatment. However, revenue growth is expected to remain modest at 6.3% per year compared to higher benchmarks.

Story Continues

Our earnings growth report unveils the potential for significant increases in AstraZeneca's future results. Click here to discover the nuances of AstraZeneca with our detailed financial health report.LSE:AZN Discounted Cash Flow as at Mar 2026

Morgan Advanced Materials

Overview: Morgan Advanced Materials plc manufactures and sells a range of carbon and ceramic products, with a market cap of £552.94 million.

Operations: The company's revenue segments include Thermal Products at £349.90 million, Performance Carbon at £307.30 million, and Technical Ceramics at £341.90 million.

Estimated Discount To Fair Value: 45.6%

Morgan Advanced Materials is trading below its estimated future cash flow value of £3.68, suggesting undervaluation as it trades at £2. The company faces challenges with a high debt level and recent earnings decline, reporting a net income of £21.1 million for 2025 compared to £50.3 million the previous year. Despite these hurdles, analysts anticipate an above-market profit growth over the next three years, though revenue growth remains modest at 2.7% annually.

The analysis detailed in our Morgan Advanced Materials growth report hints at robust future financial performance. Unlock comprehensive insights into our analysis of Morgan Advanced Materials stock in this financial health report.LSE:MGAM Discounted Cash Flow as at Mar 2026

Taking Advantage

Click this link to deep-dive into the 60 companies within our Undervalued UK Stocks Based On Cash Flows screener. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Seeking Other Investments?

Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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:SQZ LSE:AZN and LSE:MGAM.

This article was originally published by Simply Wall St.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Taylor Wimpey plc's (LON:TW.) earnings announcement last week didn't impress shareholders. While the headline numbers were soft, we believe that investors might be missing some encouraging factors.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.LSE:TW. Earnings and Revenue History March 27th 2026

The Impact Of Unusual Items On Profit

Importantly, our data indicates that Taylor Wimpey's profit was reduced by UK£244m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Taylor Wimpey took a rather significant hit from unusual items in the year to December 2025. All else being equal, this would likely have the effect of making the statutory profit look worse than its underlying earnings power.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On Taylor Wimpey's Profit Performance

As we mentioned previously, the Taylor Wimpey's profit was hampered by unusual items in the last year. Based on this observation, we consider it possible that Taylor Wimpey's statutory profit actually understates its earnings potential! Unfortunately, though, its earnings per share actually fell back over the last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Every company has risks, and we've spotted 3 warning signs for Taylor Wimpey (of which 1 can't be ignored!) you should know about.

This note has only looked at a single factor that sheds light on the nature of Taylor Wimpey's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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The UK stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines due to weak trade data from China, highlighting concerns about global economic recovery. In such a climate, identifying undervalued stocks can be crucial for investors aiming to capitalize on potential market inefficiencies and secure positions in companies trading below their intrinsic value.

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

Name Current Price Fair Value (Est) Discount (Est) Yü Group (AIM:YU.) £16.75 £30.66 45.4% Windar Photonics (AIM:WPHO) £0.305 £0.59 48.2% Taylor Wimpey (LSE:TW.) £0.8916 £1.59 44.1% Speedy Hire (LSE:SDY) £0.1914 £0.36 47.5% Pinewood Technologies Group (LSE:PINE) £2.14 £4.05 47.2% Morgan Advanced Materials (LSE:MGAM) £1.992 £3.62 45% James Fisher and Sons (LSE:FSJ) £4.66 £9.11 48.9% Eurocell (LSE:ECEL) £1.105 £2.10 47.5% Entain (LSE:ENT) £5.738 £10.77 46.7% Accsys Technologies (AIM:AXS) £0.603 £1.14 47.1%

Click here to see the full list of 57 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

NIOX Group

Overview: NIOX Group Plc focuses on designing, developing, and commercializing medical devices for asthma diagnosis, monitoring, and management globally, with a market cap of £250.76 million.

Operations: The company generates revenue through the creation and global distribution of medical devices specifically designed for asthma diagnosis, monitoring, and management.

Estimated Discount To Fair Value: 38.2%

NIOX Group appears undervalued based on cash flows, trading 38.2% below its fair value estimate and more than 20% below its future cash flow value of £0.97 per share. Earnings are projected to grow significantly at 36.23% annually, outpacing the UK market average of 12%. Recent earnings showed a substantial increase in net income to £7 million from £3.7 million last year, with a dividend increase further enhancing shareholder returns.

Our comprehensive growth report raises the possibility that NIOX Group is poised for substantial financial growth. Dive into the specifics of NIOX Group here with our thorough financial health report.AIM:NIOX Discounted Cash Flow as at Mar 2026

Hochschild Mining

Overview: Hochschild Mining plc is a precious metals company involved in the exploration, mining, processing, and sale of gold and silver across Peru, Argentina, the United Kingdom, Canada, Brazil, and Chile with a market cap of £3.05 billion.

Operations: The company's revenue segments include $436.52 million from San Jose, $77.56 million from Mara Rosa, and $667.91 million from Inmaculada.

Story Continues

Estimated Discount To Fair Value: 43.4%

Hochschild Mining is trading at £5.94, significantly below its estimated future cash flow value of £10.48, indicating it is undervalued based on cash flows. Earnings are projected to grow 27.2% annually, surpassing the UK market average growth rate of 12%. Recent financial results show strong performance with net income rising to US$201.9 million from US$97.01 million last year, despite reduced silver and gold production volumes for 2025.

According our earnings growth report, there's an indication that Hochschild Mining might be ready to expand. Take a closer look at Hochschild Mining's balance sheet health here in our report.LSE:HOC Discounted Cash Flow as at Mar 2026

Playtech

Overview: Playtech plc is a technology company that provides gambling software, services, content, and platform technologies across various regions including Italy, Mexico, the United Kingdom, Europe, Latin America, and internationally with a market cap of £1.05 billion.

Operations: Playtech's revenue segments include B2B at €719.70 million, HAPPYBET at €17.10 million, and Sun Bingo and Other B2C at €72.20 million.

Estimated Discount To Fair Value: 28.7%

Playtech, trading at £3.58, is valued below its estimated future cash flow value of £5.02, highlighting potential undervaluation based on cash flows. Revenue is expected to grow at 5.8% annually, outpacing the UK market's 4.5% growth rate, though its Return on Equity is forecasted to remain low at 4.5% in three years. Despite this, Playtech is anticipated to achieve profitability within the same timeframe with earnings projected to grow significantly by 49.34% per year.

Our earnings growth report unveils the potential for significant increases in Playtech's future results. Get an in-depth perspective on Playtech's balance sheet by reading our health report here.LSE:PTEC Discounted Cash Flow as at Mar 2026

Make It Happen

Take a closer look at our Undervalued UK Stocks Based On Cash Flows list of 57 companies by clicking here. Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready For A Different Approach?

Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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:NIOX LSE:HOC and LSE:PTEC.

This article was originally published by Simply Wall St.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Sub-4% mortgage deals have vanished from the UK market after most major lenders raised borrowing costs, as a fresh wave of rate increases sweeps through the sector following market jitters over the inflationary impact of the war in the Middle East.

The average rate for a two-year fixed mortgage came in at 5.23% this week, higher than last week's 4.99%, according to data from Uswitch.

The average five-year fixed deal came in at 5.32%, up from 5.05% previously. These are the average rates across all lenders for a 75% loan-to-value (LTV) mortgage, meaning buyers need a down payment of at least 25% of the purchase price.

The last two-year fixed-rate deals priced below 4% disappeared from the market this week, as lenders lifted mortgage interest rates across the board, pushing average rates back to levels last seen in March 2025.

The increases come amid continued disruption to seaborne trade stemming from the Iran war, a surge in oil prices, warnings over inflation from the Bank of England and rising gilt yields.

The Bank of England (BoE) voted unanimously to keep interest rates on hold in the face of the Iran war this month. Before the outbreak of war in the Middle East, expectations had been that the rate would be cut to 3.5%, but the conflict has triggered a global economic fallout, ending hopes of falling interest rates this year.

Read more: Bank of England holds interest rates at 3.75% amid Iran conflict

Alice Haine, personal finance expert at Bestinvest, said: “For homeowners, the resurgence of sharply rising mortgage rates will be deeply worrying. Average fixed mortgage rates have jumped back above 5% since the conflict began as expectations for the future path of interest rates deteriorate."

"First-time buyers and those refinancing now face higher borrowing costs and fewer options as sub-4% deals available only a few weeks ago disappear from the market."

Haine said that the urgency had returned as borrowers scrambled to secure the most competitive deal available while they can.

"Perhaps the most disappointed group will be homeowners with large mortgages coming off ultra-low fixed rates secured before the central bank began tightening in December 2021," she said. "Many five-year deals struck in 2021 - when rates were at record lows - are now expiring, so household budgets must now adjust to accommodate significantly higher repayments."

She suggested that anyone looking to buy now or remortgage in the next six months would be wise to secure the best deal they could find. "If the situation de-escalates and better rates emerge, borrowers typically have the option to switch to a cheaper product up until two weeks before their new mortgage term starts," she said.

Story Continues

Banks and building societies have taken nearly 1,000 mortgages off the market in the three weeks since the Middle East conflict began, according to Moneyfacts.

This week, HSBC (HSBA.L), Barclays (BARC.L), Nationwide and Halifax all increased mortgage costs. NatWest (NWG.L) was the only major lender to keep its rates unchanged.

Here is more detail on major lenders’ mortgage rates this week:

HSBC mortgage deals

HSBC (HSBA.L) has a 4.57% rate on a two-year deal, with a £999 booking fee, higher than last week's 4.09%. For those with a premier standard account with the lender, this rate is 4.54%.

Looking at the five-year options, the fixed standard rate is 4.68% with a £999 fee, which is more than the previous 4.28%.

Both cases assume a 60% LTV mortgage, meaning buyers need a deposit of at least 40%.

HSBC (HSBA.L) offers 95% LTV deals, so you only need to save for a 5% deposit. However, the rates are much higher, with a two-year fix at 4.49% or a five-year fix at 5.42%.

This is because someone's financial situation and deposit size determine the rate. The larger the deposit, the lower the LTV, allowing buyers to access better deals because lenders consider them less risky.

Read more: UK inflation held at 3% ahead of Iran war

The lender has recently unveiled a cashback offer of up to £2,000 to ease the upfront costs of entering the housing market.

The bank’s enhanced incentive package, which brokers say could ignite a fresh round of competitive pricing among high-street lenders, marks one of the most generous cashback schemes currently available. The measure is aimed at supporting borrowers struggling with deposit and moving costs at a time when affordability pressures remain high despite a recent easing in mortgage rates.

NatWest mortgage deals

NatWest's (NWG.L) two-year deal comes in at 4.04%, with a £1,495 product fee, unchanged from the previous week.

The cheapest five-year fixed deal is 4.49%, which also unchanged. In both cases, you'll need a deposit of at least 40% to qualify for the rates.

Barclays mortgage deals

Barclays (BARC.L) has a two-year fix available at 4.60% with a £899 product fee, higher than last week's 4.25%. Its five-year deal also increased from 4.55% to 4.80%. This is the second straight week that the lender has increased borrowing costs.

Barclays (BARC.L) launched 95% loan-to-value (LTV) mortgages for purchasers of new-build houses, in a move aimed at easing the path to home ownership, especially for first-time buyers.

The offer applies to new-build houses with a maximum purchase price of £600,000. Previously, buyers were required to pay a 10% deposit, meaning a £60,000 deposit on a £600,000 property. Under the new criteria, that requirement could be halved to £30,000.

Earlier in the year, Barclays (BARC.L) launched a mortgage proposition to help new and existing customers access larger loans when purchasing a home.

Read more: Best credit card deals of the week

The initiative, known as Mortgage Boost, enables family members or friends to effectively "boost" the amount that can be borrowed toward a property without needing to lend or gift money directly or provide a larger deposit.

Under the scheme, a borrower’s eligibility for a mortgage can increase significantly by including a family member or friend on the application. For example, Barclays (BARC.L) stated that an individual with a £37,500 annual income and a £30,000 deposit could borrow up to £168,375, meaning the most they could afford would be a home worth £207,375.

However, with Mortgage Boost, the total borrowing potential can increase if a second person, such as a parent, is added to the application. In this case, if the second applicant also earns £37,500 a year, the combined income could push the borrowing limit to £270,000, enabling the buyer to afford a home worth up to £300,000.

Nationwide mortgage deals

Nationwide (NBS.L) has increased its two-year deal for first-time buyers from 4.45% to 4.75% this week. For a five-year deal, the rate rose from 4.70% to 5%. Both deals require a 40% deposit and come with a £999 upfront fee.

This is also the second straight week that the lender has increased borrowing costs.

First-time buyers also receive £500 cashback when they complete their mortgage with Nationwide (NBS.L).

The lender this week announced an expansion of its high loan-to-income (LTI) lending, a change that could see some borrowers access tens of thousands of pounds more than previously available.

Under the new terms, home movers and customers remortgaging will now be able to borrow up to six times their annual income. This enhanced offering extends to both new and existing customers moving home or remortgaging, and applies to loans with a loan-to-value (LTV) up to 95%.

Read more: How to protect yourself against tax traps

To qualify for this increased borrowing, sole applicants must demonstrate a minimum annual income of £75,000, while joint applicants must demonstrate a minimum yearly income of £100,000. These income thresholds remain consistent with previous requirements, which allowed eligible groups to borrow up to 5.5 times their income.

The changes mean that, for example, a sole applicant who was a new customer moving home or remortgaging, with an income of £75,000, may previously have been able to borrow up to £412,500 from Nationwide (NBS.L). But now they could potentially borrow up to £450,000 - an increase of £37,500.

Nationwide (NBS.L) has also become the first lender to allow a mortgage deed to be signed electronically and without the need for a witness in a “significant step” for the market.

Anyone purchasing a property or looking to remortgage with Nationwide (NBS.L) will be able to sign their mortgage deed electronically if their solicitor is set up to use a Qualified Electronic Signature.

Halifax mortgage deals

Halifax, the UK’s largest mortgage lender, offers a two-year fix at 4.91% (also 60% LTV), which is higher than the previous 4.31%.

The lender, owned by Lloyds (LLOY.L), also offers a five-year rate of 4.90%, a jump from last week's 4.30%. This makes Halifax the only lender on our list offering a cheaper 5-year fix than a 2-year deal.

It has a 10-year deal with a mortgage rate of 4.93%.

This is the third lender on our list to increase borrowing costs for a second week running.

Santander mortgage deals

Santander (BNC.L) withdrew its 60% LTV mortgage products for first-time buyers on borrowing of less than £250,000 on two- and five-year terms last September.

A spokesperson for the bank said that the "change was part of a reprice following the changes to swaps after the Bank of England held interest rates".

Santander (BNC.L) continues to offer products with LTVs of 85% or above for first-time buyers, with the cheapest two-year fix at 4.68% and the cheapest five-year fix at 4.76%.

For home movers with a 40% deposit, Santander (BNC.L) is offering a two-year fixed rate of 4.43%, higher than the previous 4.13% and a five-year deal of 4.51%, a hike from the previous 4.21% deal.

The lender has launched a mortgage that lets first-time buyers borrow up to 98% of the property’s value.

The deal does require a minimum £10,000 deposit, though, so borrowers would need to be purchasing a home for £500,000 to have put down a deposit as low as 2%.

Read more: How to get a mortgage after divorce

Santander UK (BNC.L) said its “my first mortgage” deal has a fixed rate of 5.19% over five years and has no product fee.

The product, with up to 98% loan-to-value (LTV), is available for maximum lending of up to £500,000, repayable over a term of 5-40 years.

The deal is not available to self-employed applicants and covers only applicants living in Britain, with Northern Ireland excluded, Santander (BNC.L) said.

It is available for a minimum of £190,001 being borrowed, and £250 cashback is payable on completion.

Lending above 95% and up to 98% is available on existing houses only, Santander (BNC.L) said.

All lending also remains subject to Santander’s (BNC.L) broader affordability checks, including a maximum loan-to-income multiple of 4.45 times salary.

Cheapest mortgage deal on the market

NatWest (NWG.L) offers the most competitive two-year deal on the market for first-time buyers, with a fixed rate of 4.04%. When it comes to a five-year fixed deal, NatWest takes the crown again, with its 4.49% offer. However, any of these deals require a hefty 40% deposit.

With the average UK house price at £273,176 in February, prospective homebuyers would need a deposit of around £109,000 to secure the cheapest rates.

A growing number of homeowners in the UK are opting for mortgage terms of 35 years or longer, with a significant rise in older borrowers stretching their repayment periods well into their 70s.

Skipton Building Society is allowing first-time buyers to borrow up to 5.5 times their income, helping more borrowers get on the housing ladder.

Leeds Building Society reduced the minimum household income requirement on its first-time-buyer mortgage range. This means single or joint first-time buyer applicants with a household income of £30,000 may now be able to borrow up to 5.5 times their earnings.

Read more: Multiple Bank of England interest rate rises expected after energy price surge

Another lender has launched a 0% deposit mortgage aimed at renters as competition in the niche gathers pace. Melton Building Society is the latest provider to introduce such a product. The mutual is offering a five-year fixed rate mortgage at 5.99%, with a £199 application fee and £199 cashback on completion.

Under a no-deposit arrangement, also known as a 100% loan-to-value mortgage, the lender finances the entire purchase price of the home.

The deal is initially available to borrowers living in the East Midlands, with a broader rollout planned later this year.

Meanwhile, Newcastle Building Society offers a First Step mortgage deal, where buyers only need to put down 2% of the house price.

Mortgage holders and borrowers have faced higher repayments in recent years, as the BoE's higher base rate has been passed on by banks and building societies.

Many homeowners will hope the BoE continues to cut interest rates. At the same time, savers will likely root for rates to remain at or near their current levels.

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The United Kingdom's stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines due to weak trade data from China impacting commodity-dependent companies. In such a volatile environment, identifying undervalued stocks can present opportunities for investors seeking potential value plays amidst broader market uncertainties.

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

Name Current Price Fair Value (Est) Discount (Est) Yü Group (AIM:YU.) £16.70 £30.71 45.6% Windar Photonics (AIM:WPHO) £0.315 £0.59 46.7% Victorian Plumbing Group (AIM:VIC) £0.668 £1.25 46.4% Taylor Wimpey (LSE:TW.) £0.8572 £1.59 46.2% Speedy Hire (LSE:SDY) £0.1988 £0.36 45.4% Morgan Advanced Materials (LSE:MGAM) £1.928 £3.59 46.4% James Fisher and Sons (LSE:FSJ) £4.62 £9.12 49.3% Eurocell (LSE:ECEL) £1.08 £2.01 46.2% Entain (LSE:ENT) £5.844 £10.80 45.9% Accsys Technologies (AIM:AXS) £0.605 £1.14 47.1%

Click here to see the full list of 57 stocks from our Undervalued UK Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Croda International

Overview: Croda International Plc operates in the consumer care, life sciences, and industrial specialty sectors across Europe, the Middle East, Africa, North America, Asia, and Latin America with a market capitalization of £3.82 billion.

Operations: The company's revenue is derived from three primary segments: Consumer Care (£972.70 million), Life Sciences (£532.20 million), and Industrial Specialties (£194.50 million).

Estimated Discount To Fair Value: 27%

Croda International is trading 27% below its estimated fair value, with shares priced at £27.43 against a future cash flow valuation of £37.56. Despite this undervaluation, the dividend yield of 4.05% is not well covered by earnings or free cash flows. Recent earnings showed a decline in net income to £62 million from £158.5 million last year, reflecting lower profit margins and impacting dividend sustainability despite projected annual earnings growth of 25.2%.

Our expertly prepared growth report on Croda International implies its future financial outlook may be stronger than recent results. Get an in-depth perspective on Croda International's balance sheet by reading our health report here.LSE:CRDA Discounted Cash Flow as at Mar 2026

Entain

Overview: Entain Plc is a sports-betting and gaming company with operations in the United Kingdom, Ireland, Italy, the rest of Europe, Australia, New Zealand, and internationally; it has a market cap of approximately £3.74 billion.

Operations: The company's revenue segments include CEE at £521.70 million, UK&I at £2.18 billion, and International at £2.58 billion.

Story Continues

Estimated Discount To Fair Value: 45.9%

Entain is trading at £5.84, significantly below its estimated future cash flow value of £10.8, reflecting a strong undervaluation based on cash flows. Despite this, the company reported a net loss of £666.7 million for 2025, which has impacted earnings coverage for its 3.35% dividend yield. Revenue growth is projected at 4.7% annually, slightly outpacing the UK market average of 4.5%. Recent leadership changes include Michael Snape's appointment as director in March 2026.

Upon reviewing our latest growth report, Entain's projected financial performance appears quite optimistic. Delve into the full analysis health report here for a deeper understanding of Entain.LSE:ENT Discounted Cash Flow as at Mar 2026

Gulf Keystone Petroleum

Overview: Gulf Keystone Petroleum Limited explores, develops, and produces oil and gas in the Kurdistan Region of Iraq with a market cap of £449.02 million.

Operations: The company's revenue primarily stems from its activities in the exploration, development, and production of oil and gas within the Kurdistan Region of Iraq.

Estimated Discount To Fair Value: 33.2%

Gulf Keystone Petroleum is trading at £2.07, well below its estimated future cash flow value of £3.09, indicating it is undervalued based on cash flows. Despite a temporary production halt due to regional security concerns, the company reported strong earnings growth with net income rising from $7.16 million to $15.13 million in 2025. However, its 8.34% dividend yield remains poorly covered by earnings and free cash flows, posing a potential risk for income-focused investors.

The analysis detailed in our Gulf Keystone Petroleum growth report hints at robust future financial performance. Take a closer look at Gulf Keystone Petroleum's balance sheet health here in our report.LSE:GKP Discounted Cash Flow as at Mar 2026

Where To Now?

Access the full spectrum of 57 Undervalued UK Stocks Based On Cash Flows by clicking on this link. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Ready For A Different Approach?

Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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 LSE:CRDA LSE:ENT and LSE:GKP.

This article was originally published by Simply Wall St.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

This article first appeared on GuruFocus.

Revenue: Increased 13% to GBP3.84 billion. Gross Profit: GBP658 million with a gross margin of 17.1%. Adjusted Operating Profit: GBP421 million, up 1% year-on-year, with an adjusted operating margin of 10.9%. Return on Net Operating Assets: Increased to 11%. UK Home Completions: 10,614 homes, up 6.4% year-on-year. Blended UK Average Selling Price: GBP335,000, with private average selling price at GBP374,000. Net Cash Position: GBP343 million at year-end. Landbank: Short-term landbank reduced to 77,000 plots. Outlets: 219 outlets at year-end, up 29% from 2024. Cladding and Fire Safety Provision: GBP544 million set aside, with GBP413 million remaining. Shareholder Distributions: Total of GBP322 million for 2025, including a GBP52 million share buyback.

Warning! GuruFocus has detected 6 Warning Signs with TWODF. Is TWODF fairly valued? Test your thesis with our free DCF calculator.

Release Date: March 05, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Taylor Wimpey PLC (TWODF) delivered 2025 volumes in line with guidance, growing completions by 6% and increasing new outlet openings by 29%. The company reported a 13% increase in group revenue to GBP3.84 billion, supported by growth in UK completions and resilient private pricing. Taylor Wimpey PLC (TWODF) maintained a high customer score above the five-star threshold and continued to lead the sector in build quality. The company achieved detailed planning for over 10,000 plots in 2025, a 28% increase year-on-year, demonstrating progress in its assertive planning strategy. Taylor Wimpey PLC (TWODF) announced a flexible shareholder distribution policy, maintaining a 7.5% net asset return while introducing a share buyback option.

Negative Points

The company faced a challenging market backdrop with softened second-half sentiment and modest build cost inflation impacting gross margins. Adjusted operating profit was up only 1% year-on-year, with a margin reduction to 10.9% due to pricing pressures and build cost inflation. The outlook for 2026 anticipates adjusted operating profit to be around GBP400 million, reflecting continued market headwinds. Taylor Wimpey PLC (TWODF) experienced a lower order book at the start of 2026, attributed to a tougher trading environment in the second half of 2025. The company highlighted ongoing challenges in the housing market, particularly for first-time buyers facing affordability constraints and deposit building difficulties.

Q & A Highlights

Q: Can you provide insights into the sales rate for January and February, and how incentives have changed year-to-date compared to last year? A: The sales rate in January was softer due to a subdued market at the end of 2025, but momentum increased in February with a sales rate of 0.87, excluding bulk deals. Incentives are currently running at around 6%, as customers expect deals due to the availability of secondhand inventory.

Story Continues

Q: Has Taylor Wimpey considered offering shared equity schemes like some of its peers, and how will landbank evolution impact completions in 2026? A: We continue to evaluate shared equity models but find them expensive for both customers and our balance sheet. They haven't significantly driven customer engagement. Regarding landbank evolution, its impact on completions will be minimal in 2026, with more significant effects expected in 2027 and beyond.

Q: How has the market for bulk deals and PRS shifted into early 2026, and what are the implications of the Section 106 process changes? A: There hasn't been a significant change in PRS activity or pricing since the start of the year, with deep discounts still prevalent. The Section 106 process changes are more guidance than directive, lacking the force needed to engage unwilling local authorities. However, we are making good progress with those willing to engage.

Q: What is the company's view on potential government fiscal stimulus for first-time buyers, and what are the trends in build material and labor cost inflation? A: While there have been discussions with the government, no progressive steps have been made towards a Help to Buy type scheme. Build cost inflation is expected to be low single-digit in 2026, with pressures from raw materials, energy, and labor. We aim to mitigate these through improved procurement practices and self-help measures.

Q: Can you provide details on the visibility of build cost cover for the year and the rollout of the new house type range? A: We have over 90% of our materials negotiated centrally, providing good visibility for the year. The new house type range accounted for over one-fourth of completions in 2025 and is expected to rise to just under half in 2026.

Q: How are land market opportunities evolving, and what is the outlook for WIP in 2026? A: The land market is stabilizing with more opportunities, especially in well-located sites. However, pricing realism remains a constraint. WIP is expected to be between GBP2.1 billion and GBP2.2 billion in the first half of 2026.

Q: What is the expected timeline for achieving medium-term targets, and how have geographic demand profiles affected margins? A: We remain confident in achieving medium-term targets within three to five years, despite the non-linear growth. There are margin differentials between Northern and Southern regions, but some London sites are performing well despite challenges.

Q: How is the company managing outlet growth and site closures, and what is the target for average site size? A: Outlet growth is managed by balancing site openings and closures, which depend on market conditions. The target for average site size is around 211 plots, aligning with our strategy to target smaller, more manageable sites.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Housebuilder Taylor Wimpey has revealed annual profits more than halved, and warned earnings will fall again in 2026 amid tougher property market conditions.

The group said pre-tax profits tumbled 54% to £146.5 million in 2025 as it blamed uncertainty ahead of last November’s autumn budget for a slowdown in buyer demand at the end of the year, which has impacted orders going into 2026.

On an underlying basis, pre-tax profits fell 5.8% to £394.2 million and operating profits edged 1.1% higher to £420.6 million.

Taylor, which had warned over 2025 profits in January, alerted that it expects underlying earnings to fall this year, to around £400 million.Taylor Wimpey said demand continued to be muted (Gareth Fuller/PA)·Gareth Fuller

The group said: “2025 was another challenging year for the sector.

“The first quarter of the year was strong reflecting interest rate reductions and wage growth.

“However, uncertainty ahead of the late autumn budget impacted sales through the second half of 2025 and our order book coming into 2026.

“While overall affordability is slowly improving, demand continues to be muted, particularly in the South and among the important first-time buyer category, which is constraining overall sector output.”

It said the spring selling season had “started well, with encouraging levels of customer interest”, though its order book has fallen to £2.18 billion as at March 1, down from £2.28 billion a year earlier.

Chief executive Jennie Daly said the results come “against a backdrop of continuing market uncertainty and more recent geopolitical events”.

Despite cutting the dividend by 20%, the group appeased investors with news of a £52 million share buyback by the end of June.

Shares lifted 3%.

The figures showed it completed 10,614 UK homes last year, up from 9,972 in 2024 and in line with its forecasts.

Average selling prices on private homes rose to £374,000 from £356,000 the previous year, helping revenues rise to around £3.8 billion, from £3.4 billion in 2024.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Despite the recent momentum, the outlook for the whole of 2026 is where Taylor Wimpey left investors wanting more.

“Progress is expected to slow this year due to a downward trend in selling prices on the order book and continued low single-digit cost inflation.

“That means margins are now expected to narrow, and as a result, underlying operating profits are expected to fall.”

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Zusammenfassung

Der britische Hypothekenmarkt erlebt aufgrund des anhaltenden Konflikts im Nahen Osten eine erhebliche Veränderung, die zu einer Neubewertung zuvor geplanter Zinssenkungen führt. Halifax ist derzeit der einzige große Kreditgeber, der Raten für Erstkäufer senkt, aber andere Institutionen haben aufgrund steigender Swap-Zinsen ihre Pläne gestoppt.

Swap-Zinsen, die die Preisgestaltung von festverzinslichen Hypotheken untermauern, sind dramatisch gestiegen, da der Konflikt Besorgnis über steigende Öl- und Gaspreise und die Wiederbelebung von Inflationsängsten ausgelöst hat. Dies hat sich direkt auf die Renditen von Staatsanleihen (Gilt) ausgewirkt, was die Kreditgeber zwingt, ihre Erwartungen an Zinssenkungen der Bank of England anzupassen. Die Bank of England hat die Zinsen bei 3,75 % belassen, aber die unmittelbare Aussicht auf eine Senkung ist nun viel weniger sicher.

Der Effekt ist auf dem Hypothekenmarkt nahezu unmittelbar. Kreditgeber wie HSBC, NatWest und Barclays haben entweder die geplanten Zinssenkungen gestoppt oder neu bewertet. Dies spiegelt den engen Zusammenhang zwischen Swap-Zinsen und Hypothekenangeboten wider: Jede Marktbewegung aufgrund der geopolitischen Instabilität wirkt sich sofort auf die Möglichkeiten der Kreditnehmer aus.

Derzeit liegt der durchschnittliche Zinssatz für eine zweijährige Festhypothek bei 4,53 %, nachdem er letzte Woche von 4,75 % gesunken ist, während der durchschnittliche Zinssatz für eine fünfjährige Festhypothek bei 4,89 % liegt, einem Rückgang von 4,99 %. Diese Durchschnittswerte gelten für Hypotheken mit einer Kredtbuchung von 75 %, was bedeutet, dass Kreditnehmer eine Mindestgarantie von 25 % benötigen. Höhere Kredtbuchungen mit geringeren Garantien (z. B. 95 % Kredtbuchung) führen zu deutlich höheren Zinsen – 4,74 % für eine zweijährige Festhypothek und 4,79 % für eine fünfjährige Festhypothek – und spiegeln das erhöhte Risiko der Kreditgeber wider.

Mehrere Kreditgeber bieten Anreize, um Käufer anzuziehen, insbesondere angesichts von Lohnausforderungen. HSBC bietet einen Barauszahlungsrabatt von bis zu 2.000 £, während Barclays das „Mortgage Boost“-Programm eingeführt hat, das Familienmitglieder oder Freunde ermöglicht, einen Anteil an der Anzahlung zu leisten, ohne finanzielle Überweisungen oder größere Anzahlungen zu leisten. Dies soll die Eintrittsbarriere für Erstkäufer senken.

Ökonomen, wie Martin Temple von Leeds Building Society, glauben, dass die Finanzmärkte die Wahrscheinlichkeit einer Zinssenkung „erheblich neu bewertet“ haben. Jinesh Vohra, CEO von Sprive, hebt das Potenzial für weitere Inflationsdruckmittel hervor, die sich aus gestörten Energieversorgungen oder globalen Lieferketten ergeben, die die Geschwindigkeit jeder Zinssenkung verlangsamen könnten.

Hausbesitzer werden dazu beraten, ihre Finanzen proaktiv zu verwalten, insbesondere durch strategische Überzahlungen auf Hypotheken, da dies derzeit einer der wenigen kontrollierbaren Faktoren in einem unsicheren Markt ist.