One CIO believes that UK stocks are undervalued and performing better than U.S. stocks.

• Dan Boardman-Weston of BRI Wealth Management stated that people are beginning to realize that the U.K. has numerous excellent companies at affordable prices compared to other markets.
• Over the past three months, the FTSE 100 in the U.K. has increased by approximately 11%, while the broader FTSE 250 index has experienced a growth of over 9%.
• EQT is in advanced talks to purchase Keywords Studios for a more-than 70% premium.

After years of underperformance, U.K. stocks are showing signs of improvement, with one chief investment officer stating that valuations are currently "very cheap."

Over the past three months, the U.K. has experienced a 11% increase, while the broader index has seen a 9% rise. In contrast, the U.S.'s index is trading at a 6% gain during the same period.

Dan Boardman-Weston, CEO and CIO of BRI Wealth Management, stated on CNBC's "Squawk Box Europe" Monday that people are beginning to realize that the U.K. has numerous excellent companies that are inexpensive compared to other markets.

An undervalued stock can be indicated by a low P/E multiple, as seen in the example of an oil giant trading at a significantly lower P/E multiple than its U.S. rivals.

The reasons for the rise in U.K. stocks, according to Boardman-Weston, include political stability following a tumultuous period, the realization that the market is undervalued, and a significant increase in mergers and acquisitions.

EQT is in advanced talks to buy video game services company Keywords, with an offer of £22.50 per share, a premium of over 70% from Friday's close of £14.70. Keywords' shares jumped more than 60% Monday morning following the news.

"Boardman-Weston stated that the undervaluation of U.K. equities, particularly at the small and mid-cap level, is evident when an end buyer is willing to pay a 70% premium and still believes they can achieve the necessary financials. This highlights the cheapness of U.K. markets."