European Stocks That Investors Might Be Undervaluing

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Amid recent trade uncertainties and economic shifts, European markets have seen a positive upswing, with the STOXX Europe 600 Index rising by nearly 4% as investor sentiment was buoyed by the European Central Bank's rate cuts. In this environment of cautious optimism and policy adjustments, identifying undervalued stocks can be particularly appealing for investors seeking opportunities that might not yet reflect their full potential in market pricing.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name

Current Price

Fair Value (Est)

Discount (Est)

Micro Systemation (OM:MSAB B)

SEK49.265

SEK96.49

48.9%

LPP (WSE:LPP)

PLN15695.00

PLN30654.82

48.8%

Pharma Mar (BME:PHM)

€80.80

€158.16

48.9%

Lindab International (OM:LIAB)

SEK190.30

SEK372.38

48.9%

TF Bank (OM:TFBANK)

SEK347.50

SEK683.01

49.1%

Mo-BRUK (WSE:MBR)

PLN316.50

PLN621.01

49%

LINK Mobility Group Holding (OB:LINK)

NOK22.70

NOK44.01

48.4%

Jerónimo Martins SGPS (ENXTLS:JMT)

€21.40

€42.22

49.3%

MedinCell (ENXTPA:MEDCL)

€14.70

€28.62

48.6%

Longino & Cardenal (BIT:LON)

€1.36

€2.71

49.8%

Click here to see the full list of 177 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Pharma Mar

Overview: Pharma Mar, S.A. is a biopharmaceutical company focused on the research, development, production, and commercialization of bio-active principles for oncology across various international markets, with a market cap of €1.42 billion.

Operations: The company's revenue is primarily derived from its Oncology segment, which generated €174.59 million, and a minor contribution from RNA Interference (RNAi) amounting to €0.26 million.

Estimated Discount To Fair Value: 48.9%

Pharma Mar's stock is trading at €80.8, significantly below its estimated fair value of €158.16, suggesting it may be undervalued based on cash flows. Despite a volatile share price, earnings are forecast to grow by 40.07% annually, outpacing the Spanish market's growth rate of 5.8%. Recent financials show revenue growth from €158.15 million to €174.86 million and net income surging from €1.14 million to €26.13 million year-over-year.

BME:PHM Discounted Cash Flow as at Apr 2025
BME:PHM Discounted Cash Flow as at Apr 2025

ASML Holding

Overview: ASML Holding N.V. specializes in lithography solutions for the semiconductor industry, encompassing development, production, marketing, sales, upgrading, and servicing of advanced equipment systems with a market cap of approximately €228.46 billion.