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As the European market continues to show resilience, with the STOXX Europe 600 Index marking its longest streak of weekly gains since 2012, investors are navigating a landscape shaped by mixed inflation data and economic contractions in major economies like Germany and France. Amidst this environment, identifying stocks that are estimated to be trading below their intrinsic value can present opportunities for those seeking to capitalize on potential market inefficiencies.
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% |
Vestas Wind Systems (CPSE:VWS) | DKK101.40 | DKK202.76 | 50% |
Canatu Oyj (HLSE:CANATU) | €12.50 | €24.76 | 49.5% |
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% |
Here we highlight a subset of our preferred stocks from the screener.
Harvia Oyj
Overview: Harvia Oyj is a company that manufactures and distributes traditional, steam, and infrared saunas, with a market cap of €860.17 million.
Operations: The company's revenue segment is Building Materials - HVAC Equipment, generating €175.21 million.
Estimated Discount To Fair Value: 14.7%
Harvia Oyj, trading at €46.05, is undervalued based on cash flows with an estimated fair value of €53.97. Despite a recent dip in quarterly net income to €5.44 million from €7.23 million, earnings are forecast to grow 16.9% annually, outpacing the Finnish market's 11.4%. The company's proposed dividend increase and strategic leadership changes aim to bolster growth and profitability in Europe, enhancing its appeal as a potential undervalued investment opportunity.
Hoist Finance
Overview: Hoist Finance AB (publ) is a credit market company involved in loan acquisition and management operations across Europe, with a market cap of SEK6.61 billion.
Operations: The company's revenue is derived from its loan acquisition and management operations, with SEK1.05 billion coming from secured loans and SEK3.20 billion from unsecured loans.
Estimated Discount To Fair Value: 18.1%