European Market Value Stock Picks For Estimated Capital Growth

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As the European markets experience a positive shift, with major indices like Germany's DAX and France's CAC 40 seeing gains due to improved sentiment from the U.S.-China trade de-escalation, investors are increasingly eyeing opportunities for growth. In this environment, identifying undervalued stocks becomes crucial as these equities may offer potential for capital appreciation by trading below their intrinsic value amidst broader economic improvements.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name

Current Price

Fair Value (Est)

Discount (Est)

Airbus (ENXTPA:AIR)

€161.90

€321.90

49.7%

Alfio Bardolla Training Group (BIT:ABTG)

€1.92

€3.71

48.3%

Absolent Air Care Group (OM:ABSO)

SEK215.00

SEK417.40

48.5%

Boreo Oyj (HLSE:BOREO)

€15.70

€31.03

49.4%

Ion Beam Applications (ENXTBR:IBAB)

€11.18

€21.64

48.3%

Claranova (ENXTPA:CLA)

€2.76

€5.42

49.1%

Lumibird (ENXTPA:LBIRD)

€12.10

€23.62

48.8%

Hybrid Software Group (ENXTBR:HYSG)

€3.42

€6.66

48.6%

Longino & Cardenal (BIT:LON)

€1.45

€2.86

49.2%

HBX Group International (BME:HBX)

€10.04

€19.48

48.5%

Click here to see the full list of 176 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

illimity Bank

Overview: illimity Bank S.p.A. operates in Italy, offering private banking and investment and trading services, with a market cap of €315.95 million.

Operations: illimity Bank S.p.A.'s revenue is derived from its operations in private banking and investment and trading services within Italy.

Estimated Discount To Fair Value: 47.7%

illimity Bank is trading at €3.81, significantly below its estimated fair value of €7.28, indicating a strong valuation case based on discounted cash flows. Despite a high level of bad loans (13.9%) and low allowance for them (30%), the bank's revenue is projected to grow 24.3% annually, outpacing the Italian market's growth rate. However, recent earnings showed a decline in net income to €0.261 million from €10.75 million year-over-year, highlighting potential short-term challenges amidst long-term growth prospects.

BIT:ILTY Discounted Cash Flow as at May 2025
BIT:ILTY Discounted Cash Flow as at May 2025

Airbus

Overview: Airbus SE, along with its subsidiaries, is involved in the design, manufacture, and delivery of aeronautics and aerospace products, services, and solutions globally with a market cap of €127.47 billion.

Operations: The company's revenue is primarily derived from its Airbus segment at €51 billion, followed by Airbus Defence and Space at €12.34 billion, and Airbus Helicopters at €8.08 billion.