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3 European Stocks Estimated To Be Up To 44.6% Below Intrinsic Value

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Amid ongoing concerns about U.S. trade tariffs and monetary policy uncertainties, European markets have experienced a mixed performance, with the STOXX Europe 600 Index ending slightly lower and major indexes either down or flat. In this environment of fluctuating economic signals, identifying stocks that are trading below their intrinsic value can present opportunities for investors seeking potential long-term gains.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name

Current Price

Fair Value (Est)

Discount (Est)

Sword Group (ENXTPA:SWP)

€32.15

€64.13

49.9%

Telefonaktiebolaget LM Ericsson (OM:ERIC B)

SEK83.22

SEK164.64

49.5%

Net Insight (OM:NETI B)

SEK4.83

SEK9.58

49.6%

JOST Werke (XTRA:JST)

€50.30

€98.61

49%

Storytel (OM:STORY B)

SEK92.25

SEK180.58

48.9%

Star7 (BIT:STAR7)

€6.20

€12.36

49.8%

dormakaba Holding (SWX:DOKA)

CHF686.00

CHF1359.67

49.5%

Neosperience (BIT:NSP)

€0.538

€1.06

49.2%

Groupe Airwell Société anonyme (ENXTPA:ALAIR)

€1.13

€2.25

49.8%

Cavotec (OM:CCC)

SEK17.35

SEK34.06

49.1%

Click here to see the full list of 201 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

HMS Networks

Overview: HMS Networks AB (publ) provides products that facilitate communication and information sharing for industrial equipment globally, with a market cap of SEK23.68 billion.

Operations: The company generates revenue from its Wireless Communications Equipment segment, which amounts to SEK3.06 billion.

Estimated Discount To Fair Value: 25.2%

HMS Networks is trading at SEK472, significantly below its estimated fair value of SEK630.67, indicating undervaluation based on discounted cash flows. Despite a forecasted low return on equity and declining profit margins from 18.9% to 10.1%, the company anticipates strong earnings growth of 32.7% annually, outpacing the Swedish market's average growth rate. Recent acquisitions have led to a dividend suspension, while revenue and earnings are expected to improve in the latter half of 2025.

OM:HMS Discounted Cash Flow as at Mar 2025
OM:HMS Discounted Cash Flow as at Mar 2025

Kontron

Overview: Kontron AG provides internet of things (IoT) solutions in Austria and internationally, with a market cap of €1.53 billion.

Operations: The company's revenue segments include €1.16 billion from Europe, €294.77 million from Global operations, and €429.91 million from Software + Solutions.

Estimated Discount To Fair Value: 10.8%