In This Article:
Amidst concerns over U.S. trade tariffs and uncertainty in monetary policy, the European markets have experienced a slight downturn, with the pan-European STOXX Europe 600 Index ending 1.23% lower recently. Despite these challenges, investors may find opportunities in undervalued stocks that offer potential for growth by trading below their intrinsic value, making them attractive options in today's cautious market 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) | SEK83.02 | SEK164.54 | 49.5% |
Wienerberger (WBAG:WIE) | €35.24 | €69.57 | 49.3% |
CTT Systems (OM:CTT) | SEK228.00 | SEK443.67 | 48.6% |
Net Insight (OM:NETI B) | SEK4.92 | SEK9.58 | 48.6% |
Storytel (OM:STORY B) | SEK90.85 | SEK180.37 | 49.6% |
Star7 (BIT:STAR7) | €6.30 | €12.42 | 49.3% |
InTiCa Systems (XTRA:IS7) | €4.22 | €8.25 | 48.9% |
Fodelia Oyj (HLSE:FODELIA) | €7.12 | €13.91 | 48.8% |
MilDef Group (OM:MILDEF) | SEK208.50 | SEK405.57 | 48.6% |
Galderma Group (SWX:GALD) | CHF96.38 | CHF189.25 | 49.1% |
We'll examine a selection from our screener results.
Netcompany Group
Overview: Netcompany Group A/S delivers essential IT solutions to both private and public sectors across several countries including Denmark, Norway, the UK, and others, with a market cap of DKK13.33 billion.
Operations: The company's revenue is derived from two main segments: Public, contributing DKK4.50 billion, and Private, generating DKK2.04 billion.
Estimated Discount To Fair Value: 41.3%
Netcompany Group is trading at DKK 283.2, significantly below its estimated fair value of DKK 482.28, indicating it may be undervalued based on cash flows. With earnings expected to grow at a robust 23.3% annually over the next three years—outpacing the Danish market's average—the company shows potential despite slower revenue growth forecasts due to challenges in public spending and strategic divestments impacting future revenue levels. Recent AGM decisions include share capital reduction and bylaw amendments.
Exosens
Overview: Exosens develops, manufactures, and sells electro-optical technologies focused on amplification, detection, and imaging across France and international markets with a market cap of €1.73 billion.
Operations: The company's revenue is primarily derived from its amplification segment, contributing €280.20 million, and its detection and imaging segment, generating €117.50 million.