3 European Stocks Possibly Trading At Up To 29.6% Below Intrinsic Value Estimates

As European markets reach record highs, buoyed by a rally in technology stocks and expectations of lower U.S. borrowing costs, investors are increasingly focused on identifying opportunities that may be undervalued amidst this positive sentiment. In such an environment, a good stock is often characterized by its potential to trade below intrinsic value estimates while offering resilience against economic fluctuations and inflationary pressures.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name	Current Price	Fair Value (Est)	Discount (Est)
Vimi Fasteners (BIT:VIM)	€1.19	€2.33	48.8%
Profoto Holding (OM:PRFO)	SEK17.90	SEK34.88	48.7%
Midsummer (OM:MIDS)	SEK2.70	SEK5.36	49.6%
Lingotes Especiales (BME:LGT)	€5.65	€11.11	49.1%
Industrie Chimiche Forestali (BIT:ICF)	€6.36	€12.58	49.4%
E-Globe (BIT:EGB)	€0.64	€1.26	49.1%
Circle (BIT:CIRC)	€8.20	€16.22	49.5%
Atea (OB:ATEA)	NOK143.60	NOK281.70	49%
Allegro.eu (WSE:ALE)	PLN33.80	PLN66.37	49.1%
Absolent Air Care Group (OM:ABSO)	SEK255.00	SEK501.15	49.1%

Click here to see the full list of 205 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Acerinox (BME:ACX)

Overview: Acerinox, S.A. is a global company that manufactures, processes, and markets stainless steel products across various regions including Spain, the United States, Africa, Asia, and Europe with a market cap of €2.96 billion.

Operations: The company's revenue is primarily derived from its Stainless Steel Business, which accounts for €4.18 billion, and High Performance Alloys segment, contributing €1.55 billion.

Estimated Discount To Fair Value: 29.6%

Acerinox is trading at €11.88, below its estimated fair value of €16.87, highlighting its potential undervaluation based on cash flows. Despite a recent net loss of €17.54 million for the half year ending June 2025, earnings are forecast to grow significantly at 43.34% annually over the next three years, outpacing the Spanish market's growth rate. However, debt coverage by operating cash flow remains a concern and impacts financial positioning negatively despite revenue growth forecasts of 7.4% per year.

• Our comprehensive growth report raises the possibility that Acerinox is poised for substantial financial growth.
• Click here to discover the nuances of Acerinox with our detailed financial health report.

Coloplast (CPSE:COLO B)

Overview: Coloplast A/S develops and sells intimate healthcare products and services in Denmark, the United States, the United Kingdom, France, and internationally with a market cap of DKK129.47 billion.

Operations: Coloplast's revenue segments include Biologics (DKK1.21 billion), Chronic Care (DKK18.78 billion), Interventional Urology (DKK2.80 billion), Advanced Wound Dressings (DKK2.83 billion), and Voice and Respiratory Care (DKK2.25 billion).

Estimated Discount To Fair Value: 29.6%

Coloplast is trading at DKK 575, significantly below its estimated fair value of DKK 816.79, indicating potential undervaluation based on cash flows. Despite a decline in net income to DKK 805 million for the recent quarter, earnings are forecast to grow at 17.6% annually, surpassing the Danish market's growth rate. However, high debt levels and a dividend yield of 3.83% not covered by earnings or free cash flows present financial challenges despite positive revenue growth prospects of 6.7% per year.

• The analysis detailed in our Coloplast growth report hints at robust future financial performance.
• Unlock comprehensive insights into our analysis of Coloplast stock in this financial health report.

Nordex (XTRA:NDX1)

Overview: Nordex SE, with a market cap of €5.42 billion, develops, manufactures, and distributes multi-megawatt onshore wind turbines globally through its subsidiaries.

Operations: Nordex SE generates revenue through two primary segments: Service, contributing €837.59 million, and Projects, which accounts for €6.36 billion.

Estimated Discount To Fair Value: 13.7%

Nordex SE is trading at €22.94, slightly below its estimated fair value of €26.58, suggesting it may be undervalued based on cash flows. The company has recently turned profitable, with earnings expected to grow significantly at 39% annually, outpacing the German market's growth rate. However, its return on equity is forecasted to remain low at 19.3%. Recent orders from Turkiye and Spain highlight expanding operations and potential revenue growth beyond the current 6.8% annual forecast.

• The growth report we've compiled suggests that Nordex's future prospects could be on the up.
• Dive into the specifics of Nordex here with our thorough financial health report.

Seize The Opportunity

• Unlock more gems! Our Undervalued European Stocks Based On Cash Flows screener has unearthed 202 more companies for you to explore.Click here to unveil our expertly curated list of 205 Undervalued European Stocks Based On Cash Flows.
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Searching for a Fresh Perspective?

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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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