European Market Highlights: 3 Stocks That May Be Trading Below Their Estimated Value

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The European stock market has recently faced significant volatility, with the STOXX Europe 600 Index experiencing its largest drop in five years due to heightened trade tensions and unexpected U.S. tariffs. Amid this uncertainty, investors are increasingly focused on identifying stocks that may be trading below their estimated value, offering potential opportunities for those willing to navigate the current economic landscape.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name

Current Price

Fair Value (Est)

Discount (Est)

LPP (WSE:LPP)

PLN15430.00

PLN30843.28

50%

Etteplan Oyj (HLSE:ETTE)

€10.95

€21.70

49.5%

3U Holding (XTRA:UUU)

€1.405

€2.79

49.6%

Dätwyler Holding (SWX:DAE)

CHF108.40

CHF213.94

49.3%

DigiTouch (BIT:DGT)

€1.595

€3.12

48.9%

Norsk Titanium (OB:NTI)

NOK2.045

NOK4.09

49.9%

Figeac Aero Société Anonyme (ENXTPA:FGA)

€7.42

€14.70

49.5%

Wall to Wall Group (OM:WTW A)

SEK56.00

SEK111.58

49.8%

PowerCell Sweden (OM:PCELL)

SEK24.36

SEK48.15

49.4%

Hybrid Software Group (ENXTBR:HYSG)

€3.48

€6.81

48.9%

Click here to see the full list of 188 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Theon International

Overview: Theon International Plc specializes in the development and manufacturing of customizable night vision, thermal imaging, and electro-optical ISR systems for military and security applications globally, with a market cap of €1.55 billion.

Operations: The company's revenue is primarily derived from its Optronics segment, which generated €325.57 million.

Estimated Discount To Fair Value: 44.4%

Theon International is trading at €22.1, significantly below its estimated fair value of €39.75, representing a strong undervaluation based on discounted cash flows. Recent contract wins worth over €50 million bolster its backlog and align with revenue growth forecasts of 12.5% annually, surpassing the Dutch market's average growth rate. Despite high share price volatility, Theon's earnings are expected to grow significantly at 22% per year, supported by a robust product pipeline and strategic contracts in Northern Europe.

ENXTAM:THEON Discounted Cash Flow as at Apr 2025
ENXTAM:THEON Discounted Cash Flow as at Apr 2025

Sparebanken Vest

Overview: Sparebanken Vest is a financial services company offering banking and financing services in Vestland and Rogaland, Norway, with a market cap of NOK13.88 billion.

Operations: The company's revenue segments include NOK289 million from the estate agency business and NOK7.21 billion from banking operations, which are divided into treasury (NOK1.41 billion), Bulder Bank (NOK323 million), retail market (NOK3.20 billion), and corporate market (NOK2.28 billion).