In November 2025, European markets have been experiencing a pullback, with the pan-European STOXX Europe 600 Index declining by 1.24% amid concerns over artificial intelligence-related stock valuations. As investors navigate these fluctuating conditions, identifying stocks that may be trading below their fair value can present potential opportunities for those looking to capitalize on market inefficiencies and long-term growth prospects.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| YIT Oyj (HLSE:YIT) | €3.046 | €5.97 | 49% |
| XTPL (WSE:XTP) | PLN69.90 | PLN134.58 | 48.1% |
| STEICO (XTRA:ST5) | €20.30 | €39.77 | 49% |
| Spindox (BIT:SPN) | €12.90 | €24.92 | 48.2% |
| Roche Bobois (ENXTPA:RBO) | €34.80 | €69.24 | 49.7% |
| Nokian Panimo Oyj (HLSE:BEER) | €2.45 | €4.88 | 49.8% |
| NEUCA (WSE:NEU) | PLN798.00 | PLN1553.92 | 48.6% |
| Exel Composites Oyj (HLSE:EXL1V) | €0.397 | €0.78 | 49.1% |
| E-Globe (BIT:EGB) | €0.645 | €1.29 | 50% |
| eDreams ODIGEO (BME:EDR) | €7.21 | €14.35 | 49.7% |
We're going to check out a few of the best picks from our screener tool.
SPIE (ENXTPA:SPIE)
Overview: SPIE SA is a company offering multi-technical services in energy and communications across France, Germany, the Netherlands, and internationally with a market cap of €7.32 billion.
Operations: The company's revenue is primarily derived from its operations in Germany (€3.46 billion), North-Western Europe (€2.09 billion), Central Europe (€775.20 million), and Global Services Energy (€483.40 million).
Estimated Discount To Fair Value: 46.8%
SPIE is significantly undervalued, trading at €43.56 compared to its estimated fair value of €81.89, reflecting a potential opportunity for investors focused on cash flow valuation. Despite a high debt level and unstable dividend history, SPIE's earnings are projected to grow over 20% annually, outpacing the French market's growth rate. Recent guidance anticipates revenue surpassing €10 billion through organic expansion and acquisitions, enhancing its financial outlook despite slower revenue growth relative to the market.
- Our earnings growth report unveils the potential for significant increases in SPIE's future results.
- Take a closer look at SPIE's balance sheet health here in our report.
SoftwareOne Holding (SWX:SWON)
Overview: SoftwareOne Holding AG operates as a provider of software and cloud solutions across various regions including Europe, North America, Latin America, the Asia Pacific, and parts of Africa and the Middle East with a market cap of CHF1.75 billion.
Operations: The company's revenue segments are comprised of CHF293.79 million from DACH (Germany, Austria, and Switzerland), CHF117.91 million from NORAM (USA and Canada), CHF92.77 million from LATAM (Latin America), and CHF170.53 million from APAC (Asia Pacific, including Dubai and Qatar).
Estimated Discount To Fair Value: 39.3%
SoftwareOne Holding is trading at CHF8.19, significantly below its estimated fair value of CHF13.49, presenting a potential opportunity for cash flow-focused investors. Despite recent earnings declines and high share price volatility, the company forecasts robust revenue growth of 15.8% annually, surpassing the Swiss market's rate. However, profitability challenges persist with low return on equity projections and a dividend payout not well covered by earnings, indicating caution for long-term stability.
- Our growth report here indicates SoftwareOne Holding may be poised for an improving outlook.
- Delve into the full analysis health report here for a deeper understanding of SoftwareOne Holding.
Infineon Technologies (XTRA:IFX)
Overview: Infineon Technologies AG is a global company that designs, develops, manufactures, and markets semiconductors and semiconductor-based solutions with a market cap of approximately €46.84 billion.
Operations: Infineon generates revenue through its key segments: Automotive (€8.23 billion), Industrial Power Control (€2.34 billion), Power & Sensor Systems (€4.14 billion), and Connected Secure Systems (€2.13 billion).
Estimated Discount To Fair Value: 33.5%
Infineon Technologies is trading at €35.89, well below its estimated fair value of €54, highlighting potential for cash flow-focused investors. Despite a drop in profit margins from 11.7% to 6.7% and reduced net income, earnings are expected to grow significantly by 25% annually, outpacing the German market's growth rate. Recent collaborations in AI and data center technologies may bolster future revenue streams despite current profitability challenges and lower return on equity forecasts.
- Upon reviewing our latest growth report, Infineon Technologies' projected financial performance appears quite optimistic.
- Click here and access our complete balance sheet health report to understand the dynamics of Infineon Technologies.
Taking Advantage
- Discover the full array of 187 Undervalued European Stocks Based On Cash Flows right here.
- Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
- Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.
Ready To Venture Into Other Investment Styles?
- 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 Infineon Technologies 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