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The European stock markets have recently experienced significant declines, with the pan-European STOXX Europe 600 Index dropping by 8.44% due to heightened trade tensions and unexpected tariffs from the U.S. As investors navigate this period of uncertainty, identifying stocks that may be trading below their estimated value could present opportunities for those seeking potential gains amid market volatility.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Micro Systemation (OM:MSAB B) | SEK48.90 | SEK97.74 | 50% |
| Altri SGPS (ENXTLS:ALTR) | €5.895 | €11.45 | 48.5% |
| Zinzino (OM:ZZ B) | SEK139.80 | SEK278.41 | 49.8% |
| Mips (OM:MIPS) | SEK351.20 | SEK684.17 | 48.7% |
| LPP (WSE:LPP) | PLN15365.00 | PLN30511.81 | 49.6% |
| Absolent Air Care Group (OM:ABSO) | SEK282.00 | SEK551.36 | 48.9% |
| Fervi (BIT:FVI) | €14.70 | €29.13 | 49.5% |
| Dino Polska (WSE:DNP) | PLN447.70 | PLN875.87 | 48.9% |
| Siemens Energy (XTRA:ENR) | €49.50 | €96.49 | 48.7% |
| Hybrid Software Group (ENXTBR:HYSG) | €3.50 | €6.80 | 48.6% |
Let's explore several standout options from the results in the screener.
GPI
Overview: GPI S.p.A. offers social-healthcare and information technology hi-tech services both in Italy and internationally, with a market cap of €239.13 million.
Operations: The company generates revenue from Care services (€162.20 million) and Software solutions (€304.10 million).
Estimated Discount To Fair Value: 31.3%
GPI S.p.A. is trading at €8.3, significantly below its estimated fair value of €12.08, suggesting it is undervalued based on cash flows. Despite a robust earnings growth forecast of 29.9% annually, interest payments are not well covered by earnings, and the dividend yield of 6.02% lacks coverage by free cash flows. Recent earnings surged to €104 million from €5.57 million last year, yet revenue growth remains moderate at 4.6%.
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The analysis detailed in our GPI growth report hints at robust future financial performance.
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Click here to discover the nuances of GPI with our detailed financial health report.
OVH Groupe
Overview: OVH Groupe S.A. offers public and private cloud services, shared hosting, and dedicated server solutions globally with a market cap of €1.62 billion.
Operations: The company's revenue is primarily derived from its Private Cloud segment at €638.33 million, followed by Public Cloud at €189.67 million and Web Cloud & Other services at €188.80 million.
Estimated Discount To Fair Value: 48.5%
OVH Groupe is trading at €10.65, significantly below its estimated fair value of €20.68, indicating undervaluation based on cash flows. The company reported improved earnings with a net income of €3.15 million for Q1 2025 and expects revenue growth to outpace the French market at 9.7% annually. Despite recent volatility in share price, OVH's strategic partnerships and fixed-income offerings bolster its financial position, supporting future profitability expectations over the next three years.