As European markets experience a modest uplift, with the pan-European STOXX Europe 600 Index rising amid anticipation of U.S. Federal Reserve rate cuts, investors are keenly observing opportunities in the region. In this context, identifying stocks that are trading below their fair value becomes particularly relevant as these may offer potential for growth when market conditions stabilize.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Green Oleo (BIT:GRN) | €0.785 | €1.52 | 48.2% |
| Gofore Oyj (HLSE:GOFORE) | €14.72 | €29.33 | 49.8% |
| Echo Investment (WSE:ECH) | PLN5.50 | PLN10.71 | 48.6% |
| DSV (CPSE:DSV) | DKK1383.00 | DKK2701.33 | 48.8% |
| Digital Workforce Services Oyj (HLSE:DWF) | €3.40 | €6.76 | 49.7% |
| cyan (XTRA:CYR) | €2.30 | €4.42 | 48% |
| Brockhaus Technologies (XTRA:BKHT) | €9.94 | €19.22 | 48.3% |
| Atea (OB:ATEA) | NOK142.00 | NOK277.95 | 48.9% |
| Alfio Bardolla Training Group (BIT:ABTG) | €1.955 | €3.79 | 48.4% |
| adidas (XTRA:ADS) | €175.75 | €350.24 | 49.8% |
Here's a peek at a few of the choices from the screener.
STIF Société anonyme (ENXTPA:ALSTI)
Overview: STIF Société anonyme manufactures and sells components for the handling of bulk products in France, with a market cap of €377.97 million.
Operations: The company's revenue is primarily derived from its Machinery & Industrial Equipment segment, which generated €63.70 million.
Estimated Discount To Fair Value: 24.8%
STIF Société anonyme is trading at €73.6, significantly below its estimated fair value of €97.93, suggesting undervaluation based on discounted cash flow analysis. The company's earnings are forecast to grow 24.88% annually, outpacing the French market's 12.2%. Despite recent share price volatility, analysts predict a 22.3% price increase. Recent negotiations for acquiring a larger stake in BOSS PRODUCTS could enhance STIF's market position and revenue streams in North America if finalized successfully.
- Our expertly prepared growth report on STIF Société anonyme implies its future financial outlook may be stronger than recent results.
- Dive into the specifics of STIF Société anonyme here with our thorough financial health report.
Sword Group (ENXTPA:SWP)
Overview: Sword Group S.E. offers IT and software solutions globally, with a market cap of €337.29 million.
Operations: The company generates revenue from its IT and software solutions through segments in Belux (€108.49 million), Switzerland (€124.26 million), and the United Kingdom (€109.19 million).
Estimated Discount To Fair Value: 36.7%
Sword Group is trading at €35.7, considerably below its estimated fair value of €56.36, indicating potential undervaluation based on discounted cash flow analysis. Despite a decline in net income to €8.83 million for the first half of 2025, Sword's earnings are forecasted to grow annually by 17%, surpassing the French market average of 12.2%. Recent contracts worth CHF50 million in Switzerland bolster its strategic expansion and revenue growth prospects in German-speaking regions.
- In light of our recent growth report, it seems possible that Sword Group's financial performance will exceed current levels.
- Take a closer look at Sword Group's balance sheet health here in our report.
Harvia Oyj (HLSE:HARVIA)
Overview: Harvia Oyj operates in the sauna industry and has a market cap of €711.17 million.
Operations: Harvia Oyj generates its revenue from the Building Materials - HVAC Equipment segment, amounting to €188.89 million.
Estimated Discount To Fair Value: 37.5%
Harvia Oyj, trading at €38.05, is significantly undervalued with a fair value estimate of €60.87 based on discounted cash flow analysis. Its earnings are projected to grow 18.8% annually, outpacing the Finnish market's 16.6%. Recent innovations like the Harvia Fenix control panel and MyHarvia app enhance its product offerings and market position in sauna technology, despite high debt levels and a slight dip in net income for H1 2025 compared to the previous year.
- Insights from our recent growth report point to a promising forecast for Harvia Oyj's business outlook.
- Click here and access our complete balance sheet health report to understand the dynamics of Harvia Oyj.
Summing It All Up
- Gain an insight into the universe of 210 Undervalued European Stocks Based On Cash Flows by clicking here.
- Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
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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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