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3 European Stocks Estimated To Be Trading Below Their Intrinsic Value By Up To 48%

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As European markets navigate a landscape of mixed economic signals and geopolitical uncertainties, the pan-European STOXX Europe 600 Index has managed to sustain its longest streak of weekly gains since August 2012. This resilience, buoyed by encouraging company results and sector-specific performances, presents a fertile ground for identifying stocks potentially trading below their intrinsic value. In such an environment, discerning investors might focus on companies with strong fundamentals that can weather economic fluctuations while offering potential for long-term value appreciation.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name

Current Price

Fair Value (Est)

Discount (Est)

Sword Group (ENXTPA:SWP)

€33.20

€64.46

48.5%

Laboratorios Farmaceuticos Rovi (BME:ROVI)

€53.65

€107.22

50%

Novo Nordisk (CPSE:NOVO B)

DKK631.50

DKK1234.68

48.9%

Schoeller-Bleckmann Oilfield Equipment (WBAG:SBO)

€32.60

€63.35

48.5%

Hybrid Software Group (ENXTBR:HYSG)

€3.62

€7.05

48.6%

Storytel (OM:STORY B)

SEK89.55

SEK177.35

49.5%

Fnac Darty (ENXTPA:FNAC)

€28.00

€55.38

49.4%

Star7 (BIT:STAR7)

€6.20

€12.29

49.5%

Vestas Wind Systems (CPSE:VWS)

DKK103.35

DKK201.53

48.7%

EKINOPS (ENXTPA:EKI)

€3.52

€6.84

48.5%

Click here to see the full list of 202 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

KB Components

Overview: KB Components AB (publ) is a company that designs, develops, manufactures, and sells polymer components for various sectors including automotive, medical, and industrial applications in Sweden and globally, with a market cap of SEK3.89 billion.

Operations: The company's revenue is primarily derived from its Plastics & Rubber segment, which generated SEK2.74 billion.

Estimated Discount To Fair Value: 48%

KB Components is currently trading at SEK 67, significantly below its estimated fair value of SEK 128.77, presenting a potential undervaluation based on discounted cash flow analysis. Despite high debt levels and a dividend yield of 2.24% not fully covered by free cash flows, the company's revenue and earnings are forecast to grow faster than the Swedish market over the next three years. Recent financial results show improved sales and reduced net losses compared to previous periods.

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

MilDef Group

Overview: MilDef Group AB (publ) specializes in developing, manufacturing, and selling rugged IT solutions across various countries including Sweden, Norway, and the United States, with a market cap of SEK10.44 billion.