European Stocks Possibly Priced Below Fair Value Estimates In May 2025

As European markets continue to navigate a complex landscape, the pan-European STOXX Europe 600 Index has managed to rise for a fourth consecutive week, buoyed by hopes of easing trade tensions between China and the U.S. In this environment, identifying stocks that may be priced below their fair value can offer potential opportunities for investors looking to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name	Current Price	Fair Value (Est)	Discount (Est)
Maire (BIT:MAIRE)	€10.05	€19.61	48.7%
Qt Group Oyj (HLSE:QTCOM)	€57.10	€110.13	48.2%
ILPRA (BIT:ILP)	€4.60	€8.86	48.1%
SNGN Romgaz (BVB:SNG)	RON5.70	RON11.14	48.8%
BAWAG Group (WBAG:BG)	€99.75	€192.24	48.1%
Boreo Oyj (HLSE:BOREO)	€15.90	€31.46	49.5%
dormakaba Holding (SWX:DOKA)	CHF716.00	CHF1400.80	48.9%
Obiz (ENXTPA:ALBIZ)	€4.28	€8.53	49.8%
About You Holding (DB:YOU)	€6.70	€12.98	48.4%
Expert.ai (BIT:EXAI)	€1.342	€2.60	48.3%

Click here to see the full list of 171 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Kempower Oyj (HLSE:KEMPOWR)

Overview: Kempower Oyj is a company that manufactures and sells electric vehicle charging equipment and solutions for various modes of transportation across the Nordics, Europe, North America, and internationally, with a market cap of €662.28 million.

Operations: Kempower Oyj generates its revenue primarily from the sale of electric vehicle charging equipment, amounting to €224.60 million.

Estimated Discount To Fair Value: 15.7%

Kempower Oyj is trading at €11.96, below its estimated fair value of €14.19, suggesting it may be undervalued based on cash flows. Revenue growth is projected at 20.7% annually, outpacing the Finnish market significantly, and earnings are expected to grow by a large margin per year. Despite recent losses and share price volatility, Kempower's strategic leadership changes and enhanced credit facilities position it for potential operational improvements in the coming years.

• In light of our recent growth report, it seems possible that Kempower Oyj's financial performance will exceed current levels.
• Delve into the full analysis health report here for a deeper understanding of Kempower Oyj.

Sonova Holding (SWX:SOON)

Overview: Sonova Holding AG manufactures and sells hearing care solutions for adults and children across various regions, including the United States, Europe, the Middle East, Africa, and the Asia Pacific, with a market cap of CHF15.62 billion.

Operations: The company's revenue is primarily derived from Hearing Instruments, contributing CHF3.56 billion, and Cochlear Implants, accounting for CHF303.90 million.

Estimated Discount To Fair Value: 22.8%

Sonova Holding is trading at CHF262.1, below its estimated fair value of CHF339.46, indicating undervaluation based on cash flows. Earnings are forecast to grow by 11.39% annually, outpacing the Swiss market's growth rate of 10.8%. Despite having a high level of debt, Sonova's return on equity is expected to reach 27.5% in three years, and it has completed a share buyback program worth CHF421.5 million, potentially enhancing shareholder value.

• Our earnings growth report unveils the potential for significant increases in Sonova Holding's future results.
• Get an in-depth perspective on Sonova Holding's balance sheet by reading our health report here.

Sulzer (SWX:SUN)

Overview: Sulzer Ltd is a company that develops and sells products and services for fluid engineering and chemical processing applications globally, with a market cap of CHF4.92 billion.

Operations: Sulzer's revenue is derived from three main segments: Chemtech at CHF837.10 million, Services at CHF1.25 billion, and Flow Equipment at CHF1.44 billion.

Estimated Discount To Fair Value: 34.1%

Sulzer is trading at CHF145.8, significantly below its estimated fair value of CHF221.18, highlighting potential undervaluation based on cash flows. The company’s earnings are projected to grow 11.42% annually, surpassing the Swiss market's growth rate of 10.8%. Despite recent share price volatility, Sulzer maintains a reliable dividend yield of 2.92%. Recent financial results show increased sales and net income year-over-year, supporting its attractive valuation compared to peers and industry standards.

• Upon reviewing our latest growth report, Sulzer's projected financial performance appears quite optimistic.
• Click here and access our complete balance sheet health report to understand the dynamics of Sulzer.

Where To Now?

• Get an in-depth perspective on all 171 Undervalued European Stocks Based On Cash Flows by using our screener here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Searching for a Fresh Perspective?

• 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.

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