The European stock market has recently seen an uplift, with the pan-European STOXX Europe 600 Index rising by 2.11% amid strong corporate earnings and optimism surrounding geopolitical developments. As investors navigate these promising yet uncertain times, identifying stocks that are trading below their intrinsic value can be a strategic approach to capitalizing on potential growth opportunities.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Sparebank 68° Nord (OB:SB68) | NOK178.50 | NOK354.20 | 49.6% |
| Robit Oyj (HLSE:ROBIT) | €1.14 | €2.25 | 49.3% |
| innoscripta (XTRA:1INN) | €98.90 | €195.25 | 49.3% |
| Exel Composites Oyj (HLSE:EXL1V) | €0.383 | €0.76 | 49.5% |
| Echo Investment (WSE:ECH) | PLN5.36 | PLN10.71 | 49.9% |
| Digital Workforce Services Oyj (HLSE:DWF) | €3.46 | €6.87 | 49.6% |
| cyan (XTRA:CYR) | €2.22 | €4.39 | 49.4% |
| ATON Green Storage (BIT:ATON) | €2.05 | €4.09 | 49.9% |
| Atea (OB:ATEA) | NOK141.60 | NOK282.72 | 49.9% |
| ams-OSRAM (SWX:AMS) | CHF10.52 | CHF20.86 | 49.6% |
Let's explore several standout options from the results in the screener.
ERAMET (ENXTPA:ERA)
Overview: ERAMET S.A. is a company engaged in the production and sale of manganese and nickel across various regions including France, Europe, North America, China, and other international markets, with a market cap of €1.47 billion.
Operations: The company's revenue segments consist of Manganese (€1.98 billion), Mineral Sands (€305 million), and Nickel (€151 million).
Estimated Discount To Fair Value: 17.1%
ERAMET is trading at €51.7, below its estimated fair value of €62.39, indicating potential undervaluation based on discounted cash flow analysis. Despite a forecasted 97.55% annual earnings growth, recent financials show a net loss of €152 million for H1 2025 and declining sales to €1.40 billion from the previous year. The dividend yield of 2.9% isn't well-supported by current earnings or free cash flows, suggesting caution despite good relative value compared to peers and industry.
- In light of our recent growth report, it seems possible that ERAMET's financial performance will exceed current levels.
- Take a closer look at ERAMET's balance sheet health here in our report.
Tikehau Capital (ENXTPA:TKO)
Overview: Tikehau Capital is an alternative asset management group with €46.1 billion in assets under management, and it has a market capitalization of approximately €3.40 billion.
Operations: The company's revenue is derived from Investment Activities, contributing €240.19 million, and Asset Management Activities, which generate €371.55 million.
Estimated Discount To Fair Value: 29.1%
Tikehau Capital, trading at €19.72, is valued below its estimated fair value of €27.81, presenting potential undervaluation based on discounted cash flow analysis. Despite a decline in net income to €57.5 million for H1 2025 from the previous year, earnings are expected to grow significantly over the next three years. However, debt coverage by operating cash flow is weak and the dividend yield of 4.06% isn't well-supported by free cash flows, warranting careful consideration.
- Upon reviewing our latest growth report, Tikehau Capital's projected financial performance appears quite optimistic.
- Get an in-depth perspective on Tikehau Capital's balance sheet by reading our health report here.
Siemens Energy (XTRA:ENR)
Overview: Siemens Energy AG is a global energy technology company with a market capitalization of €78.64 billion.
Operations: Siemens Energy AG generates revenue through its key segments: Gas Services (€11.85 billion), Siemens Gamesa (€10.71 billion), Grid Technologies (€10.87 billion), and Transformation of Industry (€5.49 billion).
Estimated Discount To Fair Value: 47%
Siemens Energy, with recent earnings of €615 million for Q3 2025, shows potential undervaluation as it trades significantly below its estimated fair value of €187.84. Earnings have grown by 65.3% over the past year and are forecasted to grow at a robust rate of 32.7% annually, outpacing the German market average. The company's involvement in strategic projects like energy storage and decarbonization further supports its growth prospects amidst evolving energy market demands.
- According our earnings growth report, there's an indication that Siemens Energy might be ready to expand.
- Navigate through the intricacies of Siemens Energy with our comprehensive financial health report here.
Seize The Opportunity
- Take a closer look at our Undervalued European Stocks Based On Cash Flows list of 201 companies by clicking here.
- 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.
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Ready For A Different Approach?
- 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.
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