European Market's May 2025 Stock Picks That Could Be Trading At A Discount

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As the European markets experience a boost in sentiment following the recent de-escalation of trade tensions between the U.S. and China, major indices like Germany's DAX and France's CAC 40 have seen notable gains. In this environment of renewed optimism, investors may be on the lookout for stocks trading at a discount, which often present opportunities when market conditions are favorable for growth potential and stability.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name

Current Price

Fair Value (Est)

Discount (Est)

Laboratorios Farmaceuticos Rovi (BME:ROVI)

€52.75

€105.29

49.9%

Airbus (ENXTPA:AIR)

€161.84

€322.14

49.8%

adidas (XTRA:ADS)

€220.70

€439.05

49.7%

Lectra (ENXTPA:LSS)

€23.75

€47.40

49.9%

Absolent Air Care Group (OM:ABSO)

SEK214.00

SEK417.39

48.7%

Boreo Oyj (HLSE:BOREO)

€15.65

€30.99

49.5%

Lumibird (ENXTPA:LBIRD)

€11.90

€23.51

49.4%

Claranova (ENXTPA:CLA)

€2.82

€5.47

48.4%

BHG Group (OM:BHG)

SEK27.20

SEK53.71

49.4%

HBX Group International (BME:HBX)

€9.90

€19.37

48.9%

Click here to see the full list of 183 stocks from our Undervalued European Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Laboratorio Reig Jofre

Overview: Laboratorio Reig Jofre, S.A. is a pharmaceutical company involved in the research, development, manufacture, and marketing of pharmaceutical products and specialties along with authorized foodstuffs, dietary and personal care products, and cosmetics; it has a market cap of €244.18 million.

Operations: Laboratorio Reig Jofre's revenue is derived from its activities in pharmaceuticals, including research, development, manufacturing, and marketing of pharmaceutical products and specialties, as well as dietary and personal care items and cosmetics.

Estimated Discount To Fair Value: 18.2%

Laboratorio Reig Jofre, S.A. is trading at €3.05, which is 18.2% below its estimated fair value of €3.73, suggesting potential undervaluation based on cash flows despite not being highly undervalued. Recent earnings show a net income increase to €3.66 million for Q1 2025 from €3.27 million the previous year, with forecasted earnings growth of 25% annually outpacing both revenue growth and the Spanish market average, indicating robust future cash flow potential amidst a recent stock split event.

BME:RJF Discounted Cash Flow as at May 2025
BME:RJF Discounted Cash Flow as at May 2025

About You Holding

Overview: About You Holding SE is a fashion and technology company that operates fashion e-commerce platforms in Europe, with a market cap of €1.18 billion.