In This Article:
In the midst of economic uncertainties and fluctuating indices, the European market has been navigating challenges such as U.S. trade tariffs and monetary policy shifts, with major stock indexes showing mixed performances. Despite these hurdles, opportunities arise for discerning investors to identify undervalued stocks that may offer potential value in a volatile environment.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Telefonaktiebolaget LM Ericsson (OM:ERIC B) | SEK83.36 | SEK164.66 | 49.4% |
| Fondia Oyj (HLSE:FONDIA) | €5.45 | €10.63 | 48.7% |
| JOST Werke (XTRA:JST) | €50.00 | €98.51 | 49.2% |
| Storytel (OM:STORY B) | SEK92.70 | SEK180.62 | 48.7% |
| dormakaba Holding (SWX:DOKA) | CHF680.00 | CHF1358.27 | 49.9% |
| Star7 (BIT:STAR7) | €6.20 | €12.36 | 49.8% |
| Cint Group (OM:CINT) | SEK6.40 | SEK12.79 | 49.9% |
| Neosperience (BIT:NSP) | €0.53 | €1.06 | 49.9% |
| Cavotec (OM:CCC) | SEK17.35 | SEK34.07 | 49.1% |
| Fodelia Oyj (HLSE:FODELIA) | €7.12 | €13.91 | 48.8% |
Let's uncover some gems from our specialized screener.
ASML Holding
Overview: ASML Holding N.V. specializes in providing lithography solutions essential for semiconductor equipment systems, with a market capitalization of approximately €257.88 billion.
Operations: The company's revenue is primarily generated from its Semiconductor Equipment and Services segment, which accounted for €28.26 billion.
Estimated Discount To Fair Value: 15.7%
ASML Holding's recent strategic partnership with imec underscores its commitment to innovation and sustainability in the semiconductor industry. The stock trades at approximately €655.7, below its estimated fair value of €778.05, suggesting potential undervaluation based on cash flows. Despite insider selling, ASML is expected to achieve annual earnings growth of 15.4%, surpassing the Dutch market average, while maintaining a high return on equity forecasted at 45.9% over three years.
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 approximately €133.32 billion.
Operations: The company's revenue is primarily generated through its segments: Airbus Helicopters (€7.94 billion), Airbus Defence and Space (€12.08 billion), and Airbus, which includes Holding Function and Bank Activities (€50.65 billion).