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Amidst cautious optimism in Europe, the pan-European STOXX Europe 600 Index edged slightly higher as investors navigated U.S. trade policy developments and geopolitical efforts to resolve the Russia-Ukraine conflict. In this environment of mixed economic signals and fluctuating indices, identifying stocks that may be undervalued can provide opportunities for investors seeking value; such stocks often exhibit strong fundamentals or potential for growth despite current market challenges.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Sword Group (ENXTPA:SWP) | €33.30 | €64.76 | 48.6% |
| Vestas Wind Systems (CPSE:VWS) | DKK102.35 | DKK204.12 | 49.9% |
| Laboratorio Reig Jofre (BME:RJF) | €2.69 | €5.32 | 49.4% |
| Star7 (BIT:STAR7) | €6.40 | €12.38 | 48.3% |
| Cint Group (OM:CINT) | SEK6.745 | SEK13.29 | 49.2% |
| Surgical Science Sweden (OM:SUS) | SEK157.50 | SEK310.06 | 49.2% |
| Canatu Oyj (HLSE:CANATU) | €12.80 | €24.82 | 48.4% |
| Better Collective (OM:BETCO) | SEK109.20 | SEK216.56 | 49.6% |
| Fodelia Oyj (HLSE:FODELIA) | €7.20 | €13.91 | 48.2% |
| Galderma Group (SWX:GALD) | CHF109.48 | CHF212.91 | 48.6% |
We'll examine a selection from our screener results.
Prosegur Cash
Overview: Prosegur Cash, S.A. offers cash cycle management and payment automation services across various sectors including retail, financial institutions, and government agencies, with a market cap of €966.90 million.
Operations: Prosegur Cash generates revenue by providing cash cycle management and payment automation services to sectors such as retail, financial institutions, government agencies, central banks, mints, and jewellery stores.
Estimated Discount To Fair Value: 43.7%
Prosegur Cash appears undervalued, trading 43.7% below its estimated fair value of €1.16. Recent earnings showed a strong growth with net income rising to €89.07 million from €62.93 million, supported by a share repurchase program worth €8 million. Despite high debt levels and slower revenue growth compared to the market, its earnings are forecasted to grow significantly at 22% annually over the next three years, outpacing the Spanish market's average growth rate.
Safran
Overview: Safran SA, along with its subsidiaries, operates in the aerospace and defense sectors globally and has a market capitalization of approximately €103.57 billion.
Operations: The company's revenue is primarily derived from Aerospace Propulsion (€13.65 billion), Aeronautical Equipment, Defense and Aerosystems (€10.62 billion), and Aircraft Interiors (€3.04 billion).