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Amid heightened global trade tensions and a sharp decline in European stock indices, the pan-European STOXX Europe 600 Index recently experienced its most significant drop in five years due to unexpected U.S. tariffs. As investors navigate this volatile environment, identifying stocks that are estimated to be trading below their intrinsic value can present opportunities for those looking to capitalize on potential market mispricings.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Mips (OM:MIPS) | SEK343.60 | SEK684.22 | 49.8% |
| Etteplan Oyj (HLSE:ETTE) | €10.90 | €21.62 | 49.6% |
| Stille (OM:STIL) | SEK203.00 | SEK403.54 | 49.7% |
| 3U Holding (XTRA:UUU) | €1.41 | €2.78 | 49.3% |
| SFC Energy (XTRA:F3C) | €18.88 | €37.21 | 49.3% |
| Exel Composites Oyj (HLSE:EXL1V) | €0.3299 | €0.65 | 49.2% |
| Dino Polska (WSE:DNP) | PLN439.70 | PLN875.60 | 49.8% |
| PSI Software (XTRA:PSAN) | €22.50 | €44.68 | 49.6% |
| Siemens Energy (XTRA:ENR) | €48.56 | €96.39 | 49.6% |
| Hybrid Software Group (ENXTBR:HYSG) | €3.45 | €6.80 | 49.3% |
Underneath we present a selection of stocks filtered out by our screen.
Troax Group
Overview: Troax Group AB (publ) is a company that manufactures and distributes mesh panels across various regions including the Nordic countries, the United Kingdom, North America, Continental Europe, and globally; it has a market cap of SEK9.48 billion.
Operations: The company's revenue segment is primarily composed of mesh panels, generating €278.50 million.
Estimated Discount To Fair Value: 29.1%
Troax Group is trading at SEK158.4, significantly below its estimated fair value of SEK223.41, indicating potential undervaluation based on discounted cash flow analysis. Despite a slight decline in net income for 2024, the company maintains a stable revenue growth forecast of 8.9% annually, surpassing the Swedish market average. Troax's earnings are expected to grow by 19.1% per year, outpacing the market and supporting analyst consensus for a price increase of nearly 58%.
Yubico
Overview: Yubico AB offers authentication solutions for computers, networks, and online services with a market cap of SEK14.77 billion.
Operations: The company's revenue segment is Security Software & Services, totaling SEK2.33 billion.
Estimated Discount To Fair Value: 13.2%
Yubico, trading at SEK171.2, is valued below its estimated fair value of SEK197.33 based on discounted cash flow analysis. The company reports robust revenue and earnings growth forecasts of 20.9% and 26.7% annually, respectively, outpacing the Swedish market averages. Recent earnings showed increased sales and net income year-over-year, while strategic partnerships like the T-Mobile deployment enhance its position in cybersecurity solutions amidst executive transitions with a new CFO search underway.