Undervalued Wide-Moat Stocks: What a DCF Says in 2026

12 July 2026Value InvestingDCFScreener

"Wonderful company at a fair price" is the most quoted sentence in investing and the least often screened for. It requires two things at once: a durable business, and a price below what the cash flows are worth. Most screeners give you one or the other.

Figure

Run the price backwards

£233.44
Price today
£90
Price in 10y
£233.44
Annual return
10.0%

Rather than asking what the company is worth, feed in todays price and solve for the growth it assumes. Now you have one checkable claim instead of a number with two decimal places.

The screen

Across our 1,100+ stock universe, we ask for a moat score above 65 and a discounted cash flow fair value at least 10% above the current price. The DCF is our own, and unusually you can open it: every stock page has a Valuation Lab where the growth rate, margin and discount rate are sliders. Change them and the fair value changes in front of you.

That last part matters more than the output. A fair value you cannot interrogate is just an opinion with a decimal point.

Why you should distrust any list like this

A DCF is a model, and models are assumption engines. Move the discount rate by one percentage point and a "40% undervalued" stock becomes fairly valued. Anyone publishing a fair value without showing you the assumptions is selling confidence, not analysis.

That is why our screener shows the upside AND lets you rebuild it. Use the list as a reading list, not a shopping list.

Get today's version

[Open the free screener](/register), set the moat slider to 65 and the DCF upside signal to 10%, and you have a live version of this article that never goes stale. No card needed.

Educational information, not financial advice.

The bottom line

Great business, fair price. We screened 1,100+ stocks for a moat above 65 and a discounted cash flow value well above the market price.

You can check the numbers behind any company mentioned here on SteadyShares, free and with the screen criteria printed. If the idea is new to you, how to research a company is the place to start.

This is educational information, not financial advice.

Keep exploring: browse the stocks we cover or see what the smart money holds.