European Hidden Value Stocks That Might Be Priced Below Intrinsic Estimates

Amidst concerns over the independence of the U.S. Federal Reserve and renewed tariff uncertainties, European markets have experienced a downturn, with major indices like the STOXX Europe 600 Index closing lower. Despite these challenges, such conditions can create opportunities for investors to identify stocks that are potentially undervalued by market participants. In this environment, a good stock might be one that is priced below its intrinsic value due to broader market pressures rather than company-specific issues.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name	Current Price	Fair Value (Est)	Discount (Est)
Trifork Group (CPSE:TRIFOR)	DKK89.00	DKK175.03	49.2%
SKAN Group (SWX:SKAN)	CHF60.90	CHF120.14	49.3%
SBO (WBAG:SBO)	€27.55	€54.71	49.6%
Pluxee (ENXTPA:PLX)	€17.30	€33.99	49.1%
Norconsult (OB:NORCO)	NOK46.10	NOK90.69	49.2%
E-Globe (BIT:EGB)	€0.67	€1.31	49%
Camurus (OM:CAMX)	SEK718.00	SEK1416.78	49.3%
Bystronic (SWX:BYS)	CHF375.00	CHF746.26	49.7%
Absolent Air Care Group (OM:ABSO)	SEK259.00	SEK506.79	48.9%
ABO Energy GmbH KGaA (XTRA:AB9)	€36.50	€71.33	48.8%

Click here to see the full list of 218 stocks from our Undervalued European Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Sartorius Stedim Biotech (ENXTPA:DIM)

Overview: Sartorius Stedim Biotech S.A. produces and sells instruments and consumables for the biopharmaceutical industry globally, with a market cap of €17.31 billion.

Operations: The company generates revenue of €2.90 billion from its biopharmaceutical segment, focusing on the production and sale of instruments and consumables for the industry.

Estimated Discount To Fair Value: 19.6%

Sartorius Stedim Biotech's recent strategic alliances and capacity expansions highlight its commitment to innovation and market growth. The company reported a strong increase in earnings, with net income rising to €68.5 million for the second quarter of 2025. Despite trading below estimated fair value at €177.9 compared to €221.22, it is not significantly undervalued based on cash flows. Revenue growth forecasts exceed the French market average, reinforcing its potential as an investment opportunity in Europe.

• In light of our recent growth report, it seems possible that Sartorius Stedim Biotech's financial performance will exceed current levels.
• Unlock comprehensive insights into our analysis of Sartorius Stedim Biotech stock in this financial health report.

Montana Aerospace (SWX:AERO)

Overview: Montana Aerospace AG designs, develops, and manufactures system components and complex assemblies globally, with a market cap of CHF1.61 billion.

Operations: The company generates revenue from its segments as follows: Energy (€687.64 million) and Aerostructures (€836.54 million).

Estimated Discount To Fair Value: 34.7%

Montana Aerospace AG's recent earnings report shows a return to profitability, with net income of €6.39 million for the first half of 2025, compared to a loss last year. The company trades at CHF26, significantly below its estimated fair value of CHF39.8, suggesting it is undervalued based on cash flows. Despite high share price volatility and low forecasted return on equity, its earnings are expected to grow substantially faster than the Swiss market average over the next three years.

• The analysis detailed in our Montana Aerospace growth report hints at robust future financial performance.
• Click here to discover the nuances of Montana Aerospace with our detailed financial health report.

Hensoldt (XTRA:HAG)

Overview: Hensoldt AG, with a market cap of €10.69 billion, offers sensor solutions for defense and security applications globally through its subsidiaries.

Operations: The company's revenue is primarily derived from its Sensors segment at €1.98 billion and the Optronics segment at €374 million.

Estimated Discount To Fair Value: 27.8%

Hensoldt AG is trading at €92.55, significantly below its estimated fair value of €128.17, indicating potential undervaluation based on cash flows. Despite a net loss of €42 million for the first half of 2025, earnings are forecast to grow significantly faster than the German market over the next three years. However, interest payments are not well covered by earnings. Revenue growth is expected to outpace the German market, though it remains below 20% annually.

• Our expertly prepared growth report on Hensoldt implies its future financial outlook may be stronger than recent results.
• Get an in-depth perspective on Hensoldt's balance sheet by reading our health report here.

Seize The Opportunity

• Unlock our comprehensive list of 218 Undervalued European Stocks Based On Cash Flows by clicking here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
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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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