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In April 2025, the European market has shown resilience, with the pan-European STOXX Europe 600 Index rising by nearly 4% over a week, buoyed by the European Central Bank's decision to cut rates amid trade uncertainties. As investors navigate these shifting economic conditions, identifying undervalued stocks becomes crucial; such opportunities often lie in companies whose intrinsic value is not yet reflected in their current market price.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
Name | Current Price | Fair Value (Est) | Discount (Est) |
Cenergy Holdings (ENXTBR:CENER) | €8.42 | €16.43 | 48.8% |
Mips (OM:MIPS) | SEK352.60 | SEK692.82 | 49.1% |
LPP (WSE:LPP) | PLN15610.00 | PLN30723.31 | 49.2% |
Lindab International (OM:LIAB) | SEK186.80 | SEK371.74 | 49.8% |
Verbio (XTRA:VBK) | €9.24 | €18.22 | 49.3% |
TF Bank (OM:TFBANK) | SEK345.50 | SEK669.05 | 48.4% |
Etteplan Oyj (HLSE:ETTE) | €11.55 | €23.07 | 49.9% |
Stille (OM:STIL) | SEK209.00 | SEK400.76 | 47.8% |
Komplett (OB:KOMPL) | NOK11.50 | NOK22.67 | 49.3% |
Fodelia Oyj (HLSE:FODELIA) | €7.14 | €13.91 | 48.7% |
Let's take a closer look at a couple of our picks from the screened companies.
AddLife
Overview: AddLife AB (publ) and its subsidiaries supply equipment, consumables, and reagents mainly to the healthcare sector, research institutions, colleges, universities, as well as the food and pharmaceutical industries; it has a market cap of approximately SEK18.77 billion.
Operations: The company's revenue is primarily derived from its Labtech segment, which contributes SEK3.80 billion, and its Medtech segment, which generates SEK6.50 billion.
Estimated Discount To Fair Value: 26.9%
AddLife is trading at SEK 154, significantly below its estimated fair value of SEK 210.76, presenting a potential undervaluation based on discounted cash flow analysis. Despite low forecasted return on equity and interest payments not being well covered by earnings, the company has shown strong profit growth with net income improving to SEK 94 million from a loss last year. Future earnings are expected to grow significantly faster than the Swedish market average.
Mayr-Melnhof Karton
Overview: Mayr-Melnhof Karton AG manufactures and sells cartonboard and folding cartons in Germany, Austria, and internationally, with a market cap of €1.56 billion.
Operations: The company's revenue segments include MM Board & Paper with €1.95 billion, MM Food & Premium Packaging at €1.70 billion, and MM Pharma & Healthcare Packaging contributing €615.69 million.