2 UK Stocks that Look Cheap

These two UK companies are being undervalued by the market, according to Morningstar equity research

Holly Cook 17 November, 2014 | 8:00AM
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Holly Cook: Morningstar analysts seek to identify quality companies by looking for those that have a sustainable competitive advantage, or what we call an economic moat. They then use a discounted cash flow model to value that company's shares. Looking at the current market value and comparing that to our analyst’s fair value estimate, we come up with a Star Rating. So, those stocks that are trading way above what our analyst thinks it’s worth will get a low Star Rating, one Star being the lowest, and those that are trading way below what we think it’s worth will get a high Star Rating with five stars being the highest.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC169.38 GBX-0.04Rating
Kingfisher PLC374.80 GBX-0.19Rating
Petrofac Ltd104.00 GBX-0.48
Rolls-Royce Holdings PLC98.27 GBX1.29Rating
Tullow Oil PLC47.15 GBX-2.90

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

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