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As of late February 2025, the European stock market has shown resilience, with the pan-European STOXX Europe 600 Index marking its longest streak of weekly gains since August 2012. This positive momentum is supported by encouraging company results and gains in defense stocks, even amidst uncertainties surrounding U.S. trade policies and mixed inflation data across major European economies. In such an environment, identifying undervalued stocks can present opportunities for investors seeking to capitalize on potential discrepancies between current market prices and intrinsic values.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Micro Systemation (OM:MSAB B) | SEK55.40 | SEK108.15 | 48.8% |
| Laboratorios Farmaceuticos Rovi (BME:ROVI) | €54.60 | €107.22 | 49.1% |
| Vimi Fasteners (BIT:VIM) | €0.96 | €1.91 | 49.8% |
| Net Insight (OM:NETI B) | SEK4.82 | SEK9.39 | 48.6% |
| CD Projekt (WSE:CDR) | PLN221.00 | PLN441.00 | 49.9% |
| Tinexta (BIT:TNXT) | €7.83 | €15.45 | 49.3% |
| Storytel (OM:STORY B) | SEK92.60 | SEK179.62 | 48.4% |
| Canatu Oyj (HLSE:CANATU) | €12.40 | €24.73 | 49.9% |
| IONOS Group (XTRA:IOS) | €24.70 | €48.78 | 49.4% |
| Nordic Semiconductor (OB:NOD) | NOK137.55 | NOK266.28 | 48.3% |
Here's a peek at a few of the choices from the screener.
Absolent Air Care Group
Overview: Absolent Air Care Group AB (publ) specializes in designing, developing, selling, installing, and maintaining air filtration units and has a market cap of SEK3.19 billion.
Operations: The company's revenue is primarily derived from its Industrial segment, which accounts for SEK1157.16 million, and its Commercial Kitchen segment, contributing SEK243.11 million.
Estimated Discount To Fair Value: 46%
Absolent Air Care Group is trading at SEK282, significantly below its estimated fair value of SEK521.83, indicating it may be undervalued based on cash flows. Despite modest past earnings growth of 2.6%, future earnings are expected to grow significantly at 23.24% annually, outpacing the Swedish market's forecasted growth rate of 9.5%. Recent financial results show stable sales and net income figures, while leadership transitions are underway with an interim CEO appointed until June 2025.
CTT Systems
Overview: CTT Systems AB (publ) designs, manufactures, and sells humidity control systems for aircraft in Sweden, Denmark, France, the United States, and internationally with a market cap of SEK2.92 billion.