Investing in inexpensive UK shares is a great way to beat the market and achieve ‘alpha’ as it is called. And let’s face it, we all want to beat the market and see our money grow as brisk as possible.

So today I’m going to detail three stocks that analysts say are significantly undervalued. And while analysts can be wrong, we employ consensus data, which is usually more precise.

Let’s look at stocks.

Card Factory

From an operational point of view, it is hard to understand how to do this Card Factory (LSE:CARD) is the winner. Its business model seems antiquated – it has over 1,000 stores in the UK. The British high street has not been doing well for years, and its products are not particularly high-margin.

This is where the risk comes in. If employment and energy costs continue to rise, high street businesses could suffer even more.

However, the company continues to grow and now has an online store that bought the cards Functional pigeon With W. H. Smith. The margins are decent, but there is nothing to complain about. Operating margin is approximately 13% – above industry norms.

The really fascinating part is the value. It trades at 6.8 times forward earnings, with that number falling to 6.2 times in 2026. The dividend yield is also significant at 5.5%, rising to almost 6% in 2026. Coverage – how many times the company can pay dividends out of net income – is excellent at more than 2.5 times.

Analysts believe it is understated by approximately 61%. It’s certainly worth considering.

Jet2

Next in line is a low-cost airline Jet2 (LSE:JET2). The really fascinating element is the balance sheet. Not many airlines have a net cash position, but Jet2 has £2.1b of net cash. That’s just £500 million less than its market capitalization.

This statistic skews many indicators, but it is essential. While this net cash figure includes customer deposits, it means Jet2 is trading at just one and a half times net income after net cash.

Of course, not everything has been going in the company’s favor lately. Staffing costs are rising and slow booking patterns are compromising visibility, causing Jet2 to reduce winter capacity.

However, I think it’s oversold and worth considering. Analysts suggest it is underestimated by 47%.

Arbuthnot Banking

While well-known mainstream banks have seen growth over the past two years, Arbuthnot Banking Group (LSE:ARBB) no.

It is much smaller than his FTSE100 peers, which reflects part of the discount. Banks are perceived as safer when they are larger. Another issue for investors is the spread between the bid and ask prices.

Still, there’s a lot to like. The stock is trading at eight times forward earnings, which will drop to just under six times earnings by 2027. The dividend yield is 6% and payments are likely to augment in the coming years. The book’s price-to-value ratio is about half that of some larger competitors.

The stock’s price target is an incredible 79% above its current price. Like the analysts, I certainly think it’s worth considering.