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As European markets navigate a challenging landscape marked by new U.S. tariffs and fluctuating investor sentiment, the search for stocks trading below their estimated fair value becomes increasingly relevant. In such an environment, identifying undervalued stocks can offer opportunities for investors seeking to capitalize on discrepancies between market price and intrinsic value.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Pharma Mar (BME:PHM) | €83.20 | €166.22 | 49.9% |
| DO & CO (WBAG:DOC) | €171.20 | €338.82 | 49.5% |
| Vimi Fasteners (BIT:VIM) | €0.995 | €1.94 | 48.7% |
| Bonesupport Holding (OM:BONEX) | SEK299.60 | SEK585.95 | 48.9% |
| ArcticZymes Technologies (OB:AZT) | NOK16.32 | NOK32.32 | 49.5% |
| Melhus Sparebank (OB:MELG) | NOK168.00 | NOK329.29 | 49% |
| F-Secure Oyj (HLSE:FSECURE) | €1.78 | €3.50 | 49.1% |
| Neosperience (BIT:NSP) | €0.53 | €1.06 | 49.9% |
| MilDef Group (OM:MILDEF) | SEK207.50 | SEK405.64 | 48.8% |
| Fodelia Oyj (HLSE:FODELIA) | €7.14 | €13.91 | 48.7% |
Let's explore several standout options from the results in the screener.
Ibersol S.G.P.S
Overview: Ibersol S.G.P.S. operates a network of restaurants across Portugal, Spain, and Angola with a market cap of €359.75 million.
Operations: The company's revenue is primarily derived from Counters (€172.83 million), Restaurants (€111.42 million), and Concessions, Travel and Catering (€168.70 million).
Estimated Discount To Fair Value: 32.6%
Ibersol S.G.P.S is trading at €8.72, significantly below its estimated fair value of €12.93, indicating it may be undervalued based on cash flows. Analysts forecast a substantial earnings growth of 20.3% annually over the next three years, outpacing the Portuguese market's 10.4%. However, profit margins have decreased from last year, and its dividend yield of 5.73% isn't well covered by earnings, highlighting potential risks despite attractive valuation metrics.
SmartCraft
Overview: SmartCraft ASA offers software solutions tailored for the construction industry in Norway, Sweden, and Finland, with a market cap of NOK4.38 billion.
Operations: SmartCraft ASA generates revenue from its software solutions designed for the construction sector across Norway, Sweden, and Finland.
Estimated Discount To Fair Value: 29.8%
SmartCraft ASA, trading at NOK 26.2, is valued below its estimated fair value of NOK 37.31, highlighting potential undervaluation based on cash flows. Earnings are expected to grow significantly at 23.1% annually, surpassing the Norwegian market's growth rate of 7.9%. Despite a relatively low forecasted return on equity of 17.2%, analysts agree the stock price could rise by 26%. Recent earnings showed increased sales but slightly decreased net income compared to last year.