3 European Stocks Possibly Undervalued By As Much As 48.9%

As European markets navigate mixed performances, with the pan-European STOXX Europe 600 Index ending slightly higher amid dovish signals from the U.S. Federal Reserve and easing trade tensions, investors are keenly observing potential opportunities within this fluctuating landscape. In such conditions, identifying stocks that may be undervalued could offer strategic entry points for those looking to capitalize on market inefficiencies and long-term growth potential.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name	Current Price	Fair Value (Est)	Discount (Est)
Volvo Car AB (publ.) (OM:VOLCAR B)	SEK31.41	SEK61.47	48.9%
Pandora (CPSE:PNDORA)	DKK883.00	DKK1746.02	49.4%
Nordisk Bergteknik (OM:NORB B)	SEK12.05	SEK23.59	48.9%
Mentice (OM:MNTC)	SEK9.98	SEK19.63	49.1%
Lingotes Especiales (BME:LGT)	€5.70	€11.21	49.2%
Hanza (OM:HANZA)	SEK130.00	SEK259.53	49.9%
GomSpace Group (OM:GOMX)	SEK16.78	SEK33.08	49.3%
Dynavox Group (OM:DYVOX)	SEK107.50	SEK209.72	48.7%
doValue (BIT:DOV)	€2.75	€5.49	49.9%
Aquafil (BIT:ECNL)	€1.936	€3.85	49.7%

Click here to see the full list of 219 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

TietoEVRY Oyj (HLSE:TIETO)

Overview: TietoEVRY Oyj operates as a software and services company with a market cap of €2.15 billion.

Operations: TietoEVRY Oyj generates revenue through its diverse software and services offerings.

Estimated Discount To Fair Value: 11.4%

TietoEVRY Oyj, despite a recent net loss of €184.2 million for the nine months ending September 2025, is trading at good value compared to peers and industry, with shares priced at €18.2 below an estimated fair value of €20.53. The company expects to become profitable over the next three years with earnings forecasted to grow significantly by 63.39% annually, although revenue growth is expected to lag behind the Finnish market rate.

• Insights from our recent growth report point to a promising forecast for TietoEVRY Oyj's business outlook.
• Get an in-depth perspective on TietoEVRY Oyj's balance sheet by reading our health report here.

Volvo Car AB (publ.) (OM:VOLCAR B)

Overview: Volvo Car AB (publ.) is a company that designs, develops, manufactures, markets, and sells cars both in Sweden and internationally, with a market cap of approximately SEK93.10 billion.

Operations: Volvo Car AB (publ.) generates revenue by designing, developing, manufacturing, marketing, and selling vehicles in Sweden and across global markets.

Estimated Discount To Fair Value: 48.9%

Volvo Car AB (publ.) is trading at SEK31.41, significantly below its estimated fair value of SEK61.47, indicating strong undervaluation based on discounted cash flow analysis. Despite a volatile share price and lower profit margins compared to last year, the company reported improved net income in the third quarter of 2025. With earnings forecasted to grow significantly by 47.14% annually, Volvo's revenue growth surpasses the Swedish market average while remaining below high-growth expectations.

• Our expertly prepared growth report on Volvo Car AB (publ.) implies its future financial outlook may be stronger than recent results.
• Unlock comprehensive insights into our analysis of Volvo Car AB (publ.) stock in this financial health report.

Sandoz Group (SWX:SDZ)

Overview: Sandoz Group AG develops, manufactures, and markets generic pharmaceuticals and biosimilars globally, with a market cap of CHF21.18 billion.

Operations: The company's revenue is primarily derived from its Pharmaceuticals segment, which generated $10.59 billion.

Estimated Discount To Fair Value: 48.4%

Sandoz Group, trading at CHF49.17, is significantly undervalued with a fair value estimate of CHF95.32 based on discounted cash flow analysis. Despite its volatile share price and low forecasted return on equity, Sandoz's earnings are expected to grow significantly at 30.15% annually, outpacing the Swiss market average. Recent product launches in the US and Germany enhance its portfolio and revenue potential, while strategic sustainability initiatives support long-term operational efficiency across Europe.

• Our growth report here indicates Sandoz Group may be poised for an improving outlook.
• Dive into the specifics of Sandoz Group here with our thorough financial health report.

Summing It All Up

• Get an in-depth perspective on all 219 Undervalued European Stocks Based On Cash Flows by using our screener here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Curious About Other Options?

• 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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