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As the European market grapples with uncertainty surrounding U.S. trade policy and recent economic adjustments by the European Central Bank, investor sentiment remains cautious despite potential boosts from increased defense and infrastructure spending. In this environment, identifying undervalued stocks—those trading below their intrinsic value—can offer opportunities for investors seeking to navigate these complex conditions effectively.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Sword Group (ENXTPA:SWP) | €33.00 | €64.77 | 49.1% |
| Airbus (ENXTPA:AIR) | €163.12 | €320.31 | 49.1% |
| Comet Holding (SWX:COTN) | CHF233.00 | CHF461.06 | 49.5% |
| TF Bank (OM:TFBANK) | SEK364.00 | SEK719.55 | 49.4% |
| Wienerberger (WBAG:WIE) | €34.86 | €68.58 | 49.2% |
| adidas (XTRA:ADS) | €226.80 | €451.85 | 49.8% |
| Xplora Technologies (OB:XPLRA) | NOK27.60 | NOK54.21 | 49.1% |
| Star7 (BIT:STAR7) | €6.15 | €12.26 | 49.8% |
| Waystream Holding (OM:WAYS) | SEK18.28 | SEK35.95 | 49.2% |
| Galderma Group (SWX:GALD) | CHF96.52 | CHF189.57 | 49.1% |
Let's uncover some gems from our specialized screener.
B2 Impact
Overview: B2 Impact ASA, with a market cap of NOK3.68 billion, operates through its subsidiaries to offer a range of debt solutions.
Operations: The company generates revenue through its segments, with Servicing contributing NOK1.22 billion and Investments adding NOK3.01 billion.
Estimated Discount To Fair Value: 10.5%
B2 Impact ASA is trading at a 10.5% discount to its estimated fair value of NOK 11.16, suggesting it may be undervalued based on cash flows. Despite recent declines in revenue and net income, earnings are projected to grow significantly at 26.4% annually, outpacing the Norwegian market's growth rate. However, the company's high debt level and unsustainable dividend coverage are potential concerns for investors evaluating its financial health and long-term prospects.
Schoeller-Bleckmann Oilfield Equipment
Overview: Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft manufactures and sells steel products globally, with a market cap of €537.40 million.
Operations: The company's revenue segments include €305.97 million from Oilfield Equipment and €418.15 million from Advanced Manufacturing & Services.
Estimated Discount To Fair Value: 46.8%
Schoeller-Bleckmann Oilfield Equipment is trading at €34.1, significantly below its estimated fair value of €64.1, highlighting undervaluation based on cash flows. Revenue is expected to grow 3.6% annually, outpacing the Austrian market's 1.4%. Earnings are anticipated to increase substantially by 20.8% per year, surpassing market growth rates despite a decline in profit margins from last year and an unstable dividend history. Analysts agree on a potential price rise of 46.3%.