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Value Stocks Investors Love

SThree and SpaceandPeople are stocks on my list that are potentially undervalued. This means their current share prices are trading well-below what the companies are actually worth. Investors can benefit from buying these companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.

SThree plc (LSE:STHR)

SThree plc provides recruitment services for science, technology, engineering, and mathematics industries. Established in 1986, and now led by CEO Gary Elden, the company now has 2,866 employees and has a market cap of GBP £415.74M, putting it in the small-cap stocks category.

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STHR’s stock is currently floating at around -38% under its actual level of £5.16, at a price tag of UK£3.20, based on my discounted cash flow model. This mismatch indicates a potential opportunity to buy low. In addition to this, STHR’s PE ratio stands at 14.9x while its Professional Services peer level trades at, 17.98x meaning that relative to its comparable company group, we can buy STHR’s stock at a cheaper price today. STHR is also strong financially, as current assets can cover liabilities in the near term and over the long run.

Dig deeper into SThree here.

LSE:STHR PE PEG Gauge May 31st 18
LSE:STHR PE PEG Gauge May 31st 18

SpaceandPeople plc (AIM:SAL)

SpaceandPeople PLC markets and sells promotional and retail licensing space on behalf of shopping centers and other venues in the United Kingdom, Germany, and India. Started in 2000, and currently run by Matthew Bending, the company provides employment to 99 people and with the market cap of GBP £6.15M, it falls under the small-cap category.

SAL’s shares are now hovering at around -38% less than its actual value of £0.51, at a price of UK£0.32, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Also, SAL’s PE ratio stands at 6.71x against its its Media peer level of, 20.32x indicating that relative to its peers, we can purchase SAL’s shares for cheaper. SAL is also a financially healthy company, as short-term assets amply cover upcoming and long-term liabilities. SAL has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Interested in SpaceandPeople? Find out more here.

AIM:SAL PE PEG Gauge May 31st 18
AIM:SAL PE PEG Gauge May 31st 18

London Finance & Investment Group P.L.C. (LSE:LFI)

London Finance & Investment Group P.L.C., together with its subsidiaries, operates as an investment finance and management company. London Finance & Investment Group is run by CEO . With the stock’s market cap sitting at GBP £13.89M, it falls under the small-cap category

LFI’s shares are now trading at -21% lower than its intrinsic value of £0.56, at a price tag of UK£0.45, based on my discounted cash flow model. signalling an opportunity to buy the stock at a low price. In terms of relative valuation, LFI’s PE ratio stands at around 8.7x compared to its Capital Markets peer level of, 15.29x suggesting that relative to its competitors, you can buy LFI for a cheaper price. LFI is also a financially robust company, with current assets covering liabilities in the near term and over the long run. LFI has zero debt on its books as well, meaning it has no long term debt obligations to worry about. Continue research on London Finance & Investment Group here.

LSE:LFI PE PEG Gauge May 31st 18
LSE:LFI PE PEG Gauge May 31st 18

For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.