In This Article:
As European markets show signs of recovery, with the STOXX Europe 600 Index and major national indexes rebounding from earlier losses, investor sentiment is buoyed by the European Central Bank's recent rate cuts and delayed tariff hikes. In this environment of cautious optimism, identifying stocks that are potentially undervalued can offer opportunities for investors looking to capitalize on market shifts; such stocks often exhibit strong fundamentals or growth potential that may not yet be fully recognized by the market.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
Name | Current Price | Fair Value (Est) | Discount (Est) |
Andritz (WBAG:ANDR) | €56.50 | €112.96 | 50% |
Qt Group Oyj (HLSE:QTCOM) | €57.20 | €114.25 | 49.9% |
LPP (WSE:LPP) | PLN15600.00 | PLN30559.23 | 49% |
Pharma Mar (BME:PHM) | €81.10 | €157.48 | 48.5% |
TF Bank (OM:TFBANK) | SEK351.50 | SEK682.95 | 48.5% |
Etteplan Oyj (HLSE:ETTE) | €11.55 | €22.94 | 49.7% |
Jerónimo Martins SGPS (ENXTLS:JMT) | €21.40 | €42.23 | 49.3% |
Nordic Semiconductor (OB:NOD) | NOK118.40 | NOK235.37 | 49.7% |
Longino & Cardenal (BIT:LON) | €1.35 | €2.69 | 49.8% |
Galderma Group (SWX:GALD) | CHF90.00 | CHF175.74 | 48.8% |
We're going to check out a few of the best picks from our screener tool.
DSV
Overview: DSV A/S provides transport and logistics services across various regions including Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific with a market cap of DKK301.80 billion.
Operations: The company's revenue segments comprise DKK40.51 billion from Road, DKK25.62 billion from Solutions, DKK55.17 billion from Air Freight, and DKK49.33 billion from Sea Freight.
Estimated Discount To Fair Value: 48.2%
DSV is trading at DKK1278.5, significantly below its estimated fair value of DKK2468.15, indicating it may be undervalued based on cash flows. Analysts forecast earnings growth of 20% annually, outpacing the Danish market's 8.4%. Despite a dip in net income for 2024 to DKK10.11 billion from DKK12.32 billion the previous year, recent guidance suggests robust volume increases and stable margins across divisions, with anticipated EBIT between DKK15.5-17.5 billion for 2025 excluding acquisitions.
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The analysis detailed in our DSV growth report hints at robust future financial performance.
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Take a closer look at DSV's balance sheet health here in our report.
Galderma Group
Overview: Galderma Group AG is a global dermatology company with a market cap of CHF21.37 billion.
Operations: The company generates revenue of $4.44 billion from its dermatology segment worldwide.