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The European market has recently experienced a downturn, with the pan-European STOXX Europe 600 Index falling by 1.23% amid concerns over U.S. trade tariffs and monetary policy uncertainties. Despite these challenges, opportunities may exist for investors in undervalued stocks that are trading below their intrinsic value, offering potential for growth as economic conditions stabilize and market sentiments improve.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Telefonaktiebolaget LM Ericsson (OM:ERIC B) | SEK83.36 | SEK164.66 | 49.4% |
| Fondia Oyj (HLSE:FONDIA) | €5.45 | €10.63 | 48.7% |
| JOST Werke (XTRA:JST) | €50.00 | €98.51 | 49.2% |
| Storytel (OM:STORY B) | SEK92.70 | SEK180.62 | 48.7% |
| dormakaba Holding (SWX:DOKA) | CHF680.00 | CHF1358.27 | 49.9% |
| Star7 (BIT:STAR7) | €6.20 | €12.36 | 49.8% |
| Cint Group (OM:CINT) | SEK6.40 | SEK12.79 | 49.9% |
| Neosperience (BIT:NSP) | €0.53 | €1.06 | 49.9% |
| Cavotec (OM:CCC) | SEK17.35 | SEK34.07 | 49.1% |
| Fodelia Oyj (HLSE:FODELIA) | €7.12 | €13.91 | 48.8% |
Here we highlight a subset of our preferred stocks from the screener.
Mycronic
Overview: Mycronic AB (publ) is a company that develops, manufactures, and sells production equipment for the electronics industry across Sweden, Europe, the United States, other Americas, China, South Korea, and internationally with a market cap of SEK42.94 billion.
Operations: The company's revenue is primarily derived from its Pattern Generators segment at SEK2.99 billion, followed by High Flex at SEK1.49 billion, High Volume at SEK1.43 billion, and Global Technologies at SEK1.14 billion.
Estimated Discount To Fair Value: 17.8%
Mycronic is trading at SEK 440, below its estimated fair value of SEK 535.55, suggesting it may be undervalued based on cash flows. The company has demonstrated strong earnings growth of 68.6% over the past year and is expected to grow revenue faster than the Swedish market at 8.4% annually. Recent orders for advanced metrology systems highlight continued demand, potentially supporting future cash flow improvements despite a modest decline in recent quarterly net income.
Dino Polska
Overview: Dino Polska S.A. operates a network of mid-sized grocery supermarkets under the Dino brand in Poland, with a market cap of PLN47.35 billion.
Operations: Dino Polska generates revenue primarily from its network of mid-sized grocery supermarkets operating under the Dino brand in Poland.