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Amidst ongoing uncertainty about U.S. trade policy, the European market has experienced mixed returns, with the pan-European STOXX Europe 600 Index snapping a ten-week streak of gains. Despite this volatility, opportunities may arise as certain stocks are estimated to be trading significantly below their intrinsic value, offering potential for investors who focus on fundamental strengths and undervaluation in these turbulent times.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Laboratorios Farmaceuticos Rovi (BME:ROVI) | €53.80 | €107.22 | 49.8% |
| Absolent Air Care Group (OM:ABSO) | SEK258.00 | SEK510.61 | 49.5% |
| Vimi Fasteners (BIT:VIM) | €0.97 | €1.90 | 49% |
| CTT Systems (OM:CTT) | SEK226.00 | SEK444.87 | 49.2% |
| Wienerberger (WBAG:WIE) | €34.86 | €68.58 | 49.2% |
| Comet Holding (SWX:COTN) | CHF235.50 | CHF461.22 | 48.9% |
| TF Bank (OM:TFBANK) | SEK369.00 | SEK719.63 | 48.7% |
| Storytel (OM:STORY B) | SEK89.70 | SEK177.35 | 49.4% |
| Star7 (BIT:STAR7) | €6.25 | €12.33 | 49.3% |
| W5 Solutions (OM:W5) | SEK73.40 | SEK143.13 | 48.7% |
Below we spotlight a couple of our favorites from our exclusive screener.
Pluxee
Overview: Pluxee N.V. provides employee benefits and engagement solutions services across France, Latin America, Continental Europe, and internationally with a market cap of €3.36 billion.
Operations: The company generates revenue from its operations across different regions, with €0.46 billion from Latin America, €0.22 billion from the Rest of The World, and €0.53 billion from Continental Europe.
Estimated Discount To Fair Value: 38.6%
Pluxee is trading at €23, significantly below its estimated fair value of €37.48, indicating potential undervaluation based on cash flows. Its earnings are forecast to grow at 18.9% annually, surpassing the French market's growth rate. However, revenue growth is expected to be moderate at 7.9% per year. Recent share repurchase plans up to €15 million may enhance shareholder value and support performance initiatives, despite large one-off items impacting financial results previously noted.
Kitron
Overview: Kitron ASA is an electronics manufacturing services company operating in multiple countries including Norway, Sweden, and the United States, with a market cap of NOK9.40 billion.
Operations: The company's revenue is primarily derived from Electronics Manufacturing Services (EMS), amounting to €647.20 million.