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 rising by 2.77% and major indices like Germany’s DAX and France’s CAC 40 posting significant gains. In this environment, identifying stocks trading below their estimated worth can present valuable opportunities for investors seeking to capitalize on market optimism while mitigating risk through careful selection based on intrinsic value and potential for growth.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Micro Systemation (OM:MSAB B) | SEK49.70 | SEK96.44 | 48.5% |
| Maire (BIT:MAIRE) | €9.50 | €18.84 | 49.6% |
| Sword Group (ENXTPA:SWP) | €31.25 | €61.08 | 48.8% |
| LPP (WSE:LPP) | PLN15400.00 | PLN30325.39 | 49.2% |
| Somec (BIT:SOM) | €11.55 | €22.20 | 48% |
| Stille (OM:STIL) | SEK186.00 | SEK370.12 | 49.7% |
| Bactiguard Holding (OM:BACTI B) | SEK31.70 | SEK62.66 | 49.4% |
| ATON Green Storage (BIT:ATON) | €1.965 | €3.83 | 48.7% |
| Expert.ai (BIT:EXAI) | €1.31 | €2.58 | 49.2% |
| Longino & Cardenal (BIT:LON) | €1.34 | €2.66 | 49.6% |
Here's a peek at a few of the choices from the screener.
Scandi Standard
Overview: Scandi Standard AB (publ) is engaged in the production and sale of chilled, frozen, and ready-to-eat chicken products across various countries including Sweden, Norway, Ireland, Denmark, Finland, Germany, the United Kingdom, and other international markets with a market capitalization of approximately SEK5.76 billion.
Operations: The company's revenue is derived from the production and sale of chilled, frozen, and ready-to-eat chicken products across multiple international markets.
Estimated Discount To Fair Value: 47.1%
Scandi Standard is trading at SEK 88.1, significantly below its estimated fair value of SEK 166.41, highlighting its undervaluation based on cash flows. Despite a high debt level and a forecasted low return on equity (13.7%), the company shows promising growth prospects with earnings expected to grow over 21% annually, surpassing the Swedish market's average growth rate. Recent Q1 results show sales increased to SEK 3,376 million from SEK 3,160 million year-on-year, though net income slightly declined to SEK 66 million from SEK 70 million.
Synektik Spólka Akcyjna
Overview: Synektik Spólka Akcyjna offers products, services, and IT solutions for surgery, diagnostic imaging, and nuclear medicine applications in Poland, with a market cap of PLN1.93 billion.