3 European Stocks Estimated To Be Undervalued In March 2025

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As European markets navigate a complex landscape of mixed inflation data and economic contractions in major economies like Germany and France, the pan-European STOXX Europe 600 Index has shown resilience by posting its longest streak of weekly gains since August 2012. Against this backdrop, identifying stocks that may be undervalued becomes particularly pertinent for investors seeking opportunities amidst uncertainty.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name

Current Price

Fair Value (Est)

Discount (Est)

Micro Systemation (OM:MSAB B)

SEK55.20

SEK108.16

49%

Sword Group (ENXTPA:SWP)

€33.20

€64.81

48.8%

CD Projekt (WSE:CDR)

PLN221.60

PLN441.21

49.8%

Tinexta (BIT:TNXT)

€7.77

€15.40

49.6%

Canatu Oyj (HLSE:CANATU)

€12.50

€24.78

49.6%

Surgical Science Sweden (OM:SUS)

SEK157.50

SEK310.93

49.3%

Cint Group (OM:CINT)

SEK6.775

SEK13.32

49.2%

Nexstim (HLSE:NXTMH)

€8.48

€16.75

49.4%

Better Collective (OM:BETCO)

SEK110.20

SEK216.76

49.2%

Nordic Semiconductor (OB:NOD)

NOK137.45

NOK268.83

48.9%

Click here to see the full list of 203 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Recordati Industria Chimica e Farmaceutica

Overview: Recordati Industria Chimica e Farmaceutica S.p.A., along with its subsidiaries, is involved in the research, development, production, and sale of pharmaceuticals both in Italy and internationally, with a market cap of approximately €11.10 billion.

Operations: Recordati's revenue is primarily derived from its Rare Diseases segment, which accounts for €1.51 billion, and its Specialty & Primary Care segment, contributing €833.61 million.

Estimated Discount To Fair Value: 17.3%

Recordati Industria Chimica e Farmaceutica is trading at €54.3, below its estimated fair value of €65.67, indicating it may be undervalued based on cash flows. Despite a high level of debt, the company maintains a reliable dividend yield of 2.27% and is expected to grow earnings by 11.9% annually, outpacing the Italian market's growth rate of 8%. Recent guidance projects net revenue between €2.6 billion and €2.67 billion for 2025.

BIT:REC Discounted Cash Flow as at Mar 2025
BIT:REC Discounted Cash Flow as at Mar 2025

Salvatore Ferragamo

Overview: Salvatore Ferragamo S.p.A. is a luxury goods company that designs, manufactures, and markets products for men and women across Europe, North America, Japan, the Asia Pacific, and Central and South America with a market cap of approximately €1.34 billion.