In This Article:
As trade tensions show signs of easing, European markets have experienced a notable upswing, with the pan-European STOXX Europe 600 Index climbing 2.77% and major indices like Germany's DAX and France's CAC 40 posting significant gains. In this environment, identifying undervalued stocks can be particularly rewarding for investors seeking opportunities in companies that may be trading below their intrinsic value due to temporary market conditions or broader economic uncertainties.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Micro Systemation (OM:MSAB B) | SEK48.56 | SEK96.48 | 49.7% |
| Andritz (WBAG:ANDR) | €57.15 | €112.74 | 49.3% |
| Qt Group Oyj (HLSE:QTCOM) | €56.30 | €109.63 | 48.6% |
| LPP (WSE:LPP) | PLN15600.00 | PLN30445.48 | 48.8% |
| Pluxee (ENXTPA:PLX) | €18.80 | €36.93 | 49.1% |
| Stille (OM:STIL) | SEK190.00 | SEK369.93 | 48.6% |
| TF Bank (OM:TFBANK) | SEK351.50 | SEK682.26 | 48.5% |
| ATON Green Storage (BIT:ATON) | €1.93 | €3.83 | 49.6% |
| Expert.ai (BIT:EXAI) | €1.31 | €2.58 | 49.3% |
| Longino & Cardenal (BIT:LON) | €1.35 | €2.67 | 49.4% |
Here we highlight a subset of our preferred stocks from the screener.
Fiskars Oyj Abp
Overview: Fiskars Oyj Abp manufactures and markets consumer products for indoor and outdoor living across Europe, the Americas, and the Asia Pacific, with a market cap of €1.20 billion.
Operations: The company's revenue segments include €606.30 million from Vita and €554.70 million from Fiskars.
Estimated Discount To Fair Value: 20.7%
Fiskars Oyj Abp, trading at €14.8, is considered undervalued with a fair value estimate of €18.65 based on discounted cash flow analysis. Despite recent challenges, including a Q1 net loss of €13.2 million and interest payments not well covered by earnings, the company's earnings are forecast to grow significantly at 41.6% annually over the next three years, outpacing the Finnish market's growth rate of 12.6%.
Harvia Oyj
Overview: Harvia Oyj is a company that operates in the sauna industry, with a market cap of €748.49 million.
Operations: The company's revenue is primarily generated from its Building Materials - HVAC Equipment segment, amounting to €175.21 million.
Estimated Discount To Fair Value: 22.1%
Harvia Oyj, trading at €40.05, is undervalued with a fair value estimate of €51.44 based on discounted cash flow analysis. Despite slower revenue growth at 9.5% annually compared to the Finnish market's 3.5%, its earnings are projected to grow faster than the market at 16.1% per year. Recent board changes and dividend increases reflect strategic adjustments as Harvia expands internationally and diversifies its product offerings amidst evolving business needs.