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European Stocks Estimated To Be Trading Below Intrinsic Value By Up To 47.5%

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As European markets navigate a complex landscape marked by hopes of increased government spending and trade-related uncertainties, the pan-European STOXX Europe 600 Index has managed to snap two weeks of losses with a modest gain. Against this backdrop, identifying stocks trading below their intrinsic value can be particularly appealing to investors seeking opportunities in an environment where central banks are balancing growth concerns and inflation risks.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name

Current Price

Fair Value (Est)

Discount (Est)

Absolent Air Care Group (OM:ABSO)

SEK260.00

SEK511.61

49.2%

Romsdal Sparebank (OB:ROMSB)

NOK130.30

NOK259.93

49.9%

Vimi Fasteners (BIT:VIM)

€0.97

€1.91

49.2%

CTT Systems (OM:CTT)

SEK221.00

SEK440.81

49.9%

Comet Holding (SWX:COTN)

CHF233.00

CHF464.46

49.8%

Net Insight (OM:NETI B)

SEK4.82

SEK9.58

49.7%

Deutsche Beteiligungs (XTRA:DBAN)

€26.55

€53.05

50%

dormakaba Holding (SWX:DOKA)

CHF681.00

CHF1356.93

49.8%

Melhus Sparebank (OB:MELG)

NOK167.04

NOK329.29

49.3%

Neosperience (BIT:NSP)

€0.532

€1.06

49.7%

Click here to see the full list of 212 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Lectra

Overview: Lectra SA offers industrial intelligence solutions for the fashion, automotive, furniture markets, and other industries globally with a market cap of €1.05 billion.

Operations: The company's revenue segments include €176.10 million from the Americas, €131.53 million from the Asia-Pacific region, and €219.05 million from EMEA (Europe, Middle East, and Africa).

Estimated Discount To Fair Value: 25.8%

Lectra is trading 25.8% below its estimated fair value of €37.47, making it highly undervalued based on discounted cash flow analysis. Despite a slight decline in net income for 2024, earnings are forecast to grow significantly at 23.1% annually over the next three years, outpacing the French market's growth rate of 13%. Revenue is expected to increase by 6% per year, slightly above the market average.

ENXTPA:LSS Discounted Cash Flow as at Mar 2025
ENXTPA:LSS Discounted Cash Flow as at Mar 2025

MedinCell

Overview: MedinCell S.A. is a pharmaceutical company based in France that specializes in developing long-acting injectables across various therapeutic areas, with a market capitalization of €497.23 million.

Operations: The company's revenue segment is derived entirely from its pharmaceuticals division, amounting to €13.20 million.