Amidst concerns over the independence of the U.S. Federal Reserve and political instability in Europe, the pan-European STOXX Europe 600 Index recently experienced a decline of nearly 2%, reflecting broader market apprehensions. As investors navigate these uncertainties, identifying stocks that may be trading below their intrinsic value can offer potential opportunities for those looking to capitalize on market inefficiencies during volatile times.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Truecaller (OM:TRUE B) | SEK43.08 | SEK86.12 | 50% |
| Trifork Group (CPSE:TRIFOR) | DKK88.10 | DKK174.89 | 49.6% |
| STMicroelectronics (ENXTPA:STMPA) | €21.97 | €42.90 | 48.8% |
| Siemens Energy (XTRA:ENR) | €89.12 | €174.64 | 49% |
| Lingotes Especiales (BME:LGT) | €5.85 | €11.41 | 48.7% |
| Hanza (OM:HANZA) | SEK112.60 | SEK220.83 | 49% |
| DSV (CPSE:DSV) | DKK1349.00 | DKK2619.70 | 48.5% |
| Camurus (OM:CAMX) | SEK723.50 | SEK1416.78 | 48.9% |
| BHG Group (OM:BHG) | SEK25.20 | SEK50.14 | 49.7% |
| Alfio Bardolla Training Group (BIT:ABTG) | €1.86 | €3.67 | 49.3% |
Let's uncover some gems from our specialized screener.
Kid (OB:KID)
Overview: Kid ASA, along with its subsidiaries, operates as a home textile retailer across Norway, Sweden, Finland, and Estonia with a market capitalization of NOK5.99 billion.
Operations: The company generates revenue through its Hemtex segment, contributing NOK1.49 billion, and its KID Interior segment, which brings in NOK2.39 billion.
Estimated Discount To Fair Value: 35.5%
Kid is trading at NOK147.4, significantly below its fair value estimate of NOK228.46, indicating it is undervalued based on cash flows. Despite a high debt level and an unstable dividend history, Kid's revenue and earnings are forecast to grow faster than the Norwegian market at 7.5% and 16.5% per year respectively. However, recent results show a net loss for Q2 2025 despite increased sales, highlighting potential financial challenges ahead.
- Upon reviewing our latest growth report, Kid's projected financial performance appears quite optimistic.
- Navigate through the intricacies of Kid with our comprehensive financial health report here.
Semperit Holding (WBAG:SEM)
Overview: Semperit Aktiengesellschaft Holding is a company that develops, produces, and sells rubber products for the medical and industrial sectors globally, with a market cap of €269.10 million.
Operations: The company's revenue segments include €364.57 million from Engineered Applications and €287.20 million from Industrial Applications.
Estimated Discount To Fair Value: 18.1%
Semperit Holding, trading at €13.08, is undervalued relative to its fair value estimate of €15.97 based on cash flows. Despite a recent net loss of €4 million in Q2 2025 and a forecasted low return on equity of 5.5% in three years, analysts expect the stock price to rise by 28.1%. Revenue growth is projected at 7.6% annually, outpacing the Austrian market's growth rate, although profitability remains a future prospect over the next three years.
- In light of our recent growth report, it seems possible that Semperit Holding's financial performance will exceed current levels.
- Take a closer look at Semperit Holding's balance sheet health here in our report.
Mo-BRUK (WSE:MBR)
Overview: Mo-BRUK S.A. is a company that processes industrial, hazardous, and municipal waste across several European countries including Poland, Germany, Italy, Slovenia, Denmark, Romania, and Lithuania with a market capitalization of PLN1.03 billion.
Operations: The company's revenue is primarily derived from Waste Management, which contributes PLN265.88 million, and Fuel Stations, which add PLN24.92 million.
Estimated Discount To Fair Value: 36.4%
Mo-BRUK, trading at PLN 293, is significantly undervalued compared to its estimated fair value of PLN 461. Despite a recent drop in net income to PLN 26.4 million for the first half of 2025 from PLN 30.42 million a year ago, earnings are projected to grow annually by 16.6%, outpacing the Polish market's growth rate. However, its dividend yield of 4.49% isn't well-supported by free cash flows, indicating potential sustainability concerns.
- Our growth report here indicates Mo-BRUK may be poised for an improving outlook.
- Click to explore a detailed breakdown of our findings in Mo-BRUK's balance sheet health report.
Where To Now?
- Unlock more gems! Our Undervalued European Stocks Based On Cash Flows screener has unearthed 208 more companies for you to explore.Click here to unveil our expertly curated list of 211 Undervalued European Stocks Based On Cash Flows.
- Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
- Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.
Contemplating Other Strategies?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
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.
Valuation is complex, but we're here to simplify it.
Discover if Semperit Holding might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com