European Stocks That May Be Trading Below Estimated Value

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As European markets experience a positive upswing, with the pan-European STOXX Europe 600 Index climbing 3.44% amid easing tariff concerns, investors are keenly observing opportunities for stocks that may be trading below their estimated value. In such an environment, identifying undervalued stocks involves looking for companies with strong fundamentals that have been overlooked by the market, potentially offering growth prospects as economic conditions stabilize.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name

Current Price

Fair Value (Est)

Discount (Est)

Qt Group Oyj (HLSE:QTCOM)

€56.85

€110.78

48.7%

Sword Group (ENXTPA:SWP)

€31.55

€62.62

49.6%

Alfio Bardolla Training Group (BIT:ABTG)

€1.92

€3.75

48.7%

Pexip Holding (OB:PEXIP)

NOK47.00

NOK92.81

49.4%

Truecaller (OM:TRUE B)

SEK75.00

SEK149.96

50%

Net Insight (OM:NETI B)

SEK2.845

SEK5.56

48.8%

Etteplan Oyj (HLSE:ETTE)

€10.45

€20.86

49.9%

dormakaba Holding (SWX:DOKA)

CHF699.00

CHF1395.20

49.9%

Fodelia Oyj (HLSE:FODELIA)

€6.88

€13.43

48.8%

Obiz (ENXTPA:ALBIZ)

€4.38

€8.72

49.8%

Click here to see the full list of 169 stocks from our Undervalued European Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

TXT e-solutions

Overview: TXT e-solutions S.p.A. offers software and service solutions both in Italy and internationally, with a market cap of €420.10 million.

Operations: The company generates revenue from three main segments: Smart Solutions (€63.96 million), Digital Advisory (€48.92 million), and Software Engineering (€191.66 million).

Estimated Discount To Fair Value: 12.3%

TXT e-solutions, trading at €33.1, is undervalued relative to its estimated fair value of €37.74. Despite a modest undervaluation, the company shows strong revenue growth potential at 12.6% annually, outpacing the Italian market's 4.3%. Earnings are expected to grow significantly by 20.8% per year over the next three years, indicating robust financial health despite debt not being well-covered by operating cash flow. Recent strategic moves include seeking acquisitions and partnerships in aviation training solutions, enhancing diversification and market reach.

BIT:TXT Discounted Cash Flow as at May 2025
BIT:TXT Discounted Cash Flow as at May 2025

Ion Beam Applications

Overview: Ion Beam Applications SA designs, produces, and markets solutions for cancer diagnosis and treatments in Belgium, the United States, and internationally with a market cap of €329.76 million.