European Market Value Stock Picks For Estimated Intrinsic Value Opportunities

As European markets grapple with renewed uncertainty due to U.S. trade policy shifts and geopolitical tensions in the Middle East, the pan-European STOXX Europe 600 Index has seen a notable decline of 1.57%. In this climate, identifying stocks that are potentially undervalued can offer investors opportunities to align their portfolios with companies trading below their estimated intrinsic value, providing room for potential growth despite broader market challenges.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Click here to see the full list of 174 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Montana Aerospace (SWX:AERO)

Overview: Montana Aerospace AG designs, develops, and manufactures system components and complex assemblies on a global scale, with a market cap of CHF1.21 billion.

Operations: The company's revenue is primarily derived from its Aerostructures segment at €829.17 million and its Energy segment at €665.38 million.

Estimated Discount To Fair Value: 49.7%

Montana Aerospace AG's recent earnings report shows a strong performance with Q1 sales increasing to €410.86 million and net income rising to €5.27 million. The company is trading at CHF19.58, significantly below its estimated fair value of CHF38.95, indicating potential undervaluation based on cash flows. Despite high share price volatility and expected revenue growth of 5.8% per year, earnings are projected to grow significantly at 42.1% annually, outpacing the Swiss market average.

• Insights from our recent growth report point to a promising forecast for Montana Aerospace's business outlook.
• Click to explore a detailed breakdown of our findings in Montana Aerospace's balance sheet health report.

FACC (WBAG:FACC)

Overview: FACC AG, with a market cap of €302.67 million, develops, produces, and maintains aircraft components globally through its subsidiaries.

Operations: The company's revenue is primarily derived from three segments: Aerostructures (€353.71 million), Cabin Interiors (€389.49 million), and Engines & Nacelles (€170.03 million).

Estimated Discount To Fair Value: 44.7%

FACC, trading at €6.61, is significantly undervalued with a fair value estimate of €11.95 based on discounted cash flow analysis. Despite recent volatility and lower net profit margins compared to last year, the company's revenue grew to €230.96 million in Q1 2025 from €202.36 million a year ago. Earnings are forecasted to grow substantially at 70.9% annually over the next three years, outpacing the Austrian market's average growth rate.

• Our growth report here indicates FACC may be poised for an improving outlook.
• Click here and access our complete balance sheet health report to understand the dynamics of FACC.

Carl Zeiss Meditec (XTRA:AFX)

Overview: Carl Zeiss Meditec AG is a medical technology company operating in Germany, the rest of Europe, North America, and Asia with a market cap of €5.35 billion.

Operations: The company generates revenue from two main segments: Microsurgery, which accounts for €472.67 million, and Ophthalmic Devices (including Surgical Ophthalmology), contributing €1.70 billion.

Estimated Discount To Fair Value: 40.5%

Carl Zeiss Meditec, trading at €61.1, is undervalued with a fair value estimate of €102.62 based on discounted cash flow analysis. Despite a decline in profit margins from 12.7% to 7.2%, the company’s earnings are expected to grow significantly at over 20% annually. Recent product approvals in China and strategic leadership changes could bolster future performance, as the company continues to innovate within its medical technology segment.

• Upon reviewing our latest growth report, Carl Zeiss Meditec's projected financial performance appears quite optimistic.
• Delve into the full analysis health report here for a deeper understanding of Carl Zeiss Meditec.

Turning Ideas Into Actions

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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