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In May 2025, European markets have shown resilience, with the pan-European STOXX Europe 600 Index climbing 3.44% as easing tariff concerns contributed to positive momentum across major stock indexes. Amid this backdrop of economic growth and fluctuating inflation rates, identifying stocks that are estimated to be trading below their fair value can present potential opportunities for investors looking to capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
Name | Current Price | Fair Value (Est) | Discount (Est) |
ILPRA (BIT:ILP) | €4.60 | €8.88 | 48.2% |
SNGN Romgaz (BVB:SNG) | RON5.80 | RON11.19 | 48.2% |
CTT Systems (OM:CTT) | SEK211.20 | SEK416.05 | 49.2% |
Truecaller (OM:TRUE B) | SEK76.05 | SEK149.09 | 49% |
Lectra (ENXTPA:LSS) | €24.15 | €48.03 | 49.7% |
Stille (OM:STIL) | SEK188.00 | SEK367.98 | 48.9% |
dormakaba Holding (SWX:DOKA) | CHF698.00 | CHF1394.44 | 49.9% |
Bactiguard Holding (OM:BACTI B) | SEK32.00 | SEK62.29 | 48.6% |
Expert.ai (BIT:EXAI) | €1.328 | €2.60 | 48.9% |
Northern Data (DB:NB2) | €24.62 | €48.68 | 49.4% |
Let's take a closer look at a couple of our picks from the screened companies.
Neste Oyj
Overview: Neste Oyj is a company that, along with its subsidiaries, supplies renewable diesel and sustainable aviation fuel across Finland, the Nordic countries, the Baltic Rim, other parts of Europe, the United States, and internationally; it has a market capitalization of €7.26 billion.
Operations: Neste Oyj's revenue is primarily derived from its Oil Products segment at €12.10 billion, Renewable Products at €7.30 billion, and Marketing & Services at €4.51 billion.
Estimated Discount To Fair Value: 23%
Neste Oyj appears to be trading at a significant discount, with its current price 23% below the estimated fair value of €12.27. Despite recent financial challenges, including a net loss of €40 million in Q1 2025 and reduced renewable diesel production, the company forecasts higher sales volumes for both renewable and oil products in 2025. While revenue growth is expected to outpace the Finnish market, profitability is anticipated over the next three years amidst high share price volatility.
dormakaba Holding
Overview: dormakaba Holding AG offers access and security solutions globally, with a market capitalization of CHF2.93 billion.
Operations: The company's revenue is primarily derived from Access Solutions, contributing CHF2.44 billion, and Key & Wall Solutions and OEM, which account for CHF496.40 million.