Executive Summary

This report presents a quantitative analysis of the UK small-cap technology sector to identify potentially undervalued companies. By leveraging public financial data and applying a value investing framework, we have filtered for companies trading at a low Price-to-Book (P/B) ratio, a key indicator of potential value. This analysis is for informational purposes and does not constitute investment advice.

1. Methodology

Our process involved three key steps, executed programmatically using Python scripts:

• Data Acquisition: We pulled financial statement data for all publicly listed UK technology companies with a market capitalization under £500 million.
• Metric Calculation: For each company, we calculated the Price-to-Book ratio by dividing the current market capitalization by the most recently reported book value.
• Filtering & Ranking: We filtered out companies with a P/B ratio greater than 2.0 and ranked the remainder.

2. Key Findings

The analysis identified a shortlist of companies trading at a significant discount to their book value. A low P/B ratio can indicate that the market is undervaluing the company’s assets, presenting a potential opportunity for further research.

(Note: Data is illustrative)

3. Conclusion

Quantitative screening is a powerful tool for narrowing the field of potential investments. The companies identified in this report represent a statistically interesting starting point for deep, fundamental analysis.