Stock Analysis

European Stocks Estimated To Be Trading Below Intrinsic Value In April 2025

Amidst heightened global trade tensions and the resulting market volatility, European stocks have experienced significant declines, with major indices like the STOXX Europe 600 Index posting its largest drop in five years. In this challenging environment, identifying stocks that are trading below their intrinsic value can offer potential opportunities for investors seeking to navigate uncertainty and capitalize on undervalued assets.

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Top 10 Undervalued Stocks Based On Cash Flows In Europe

NameCurrent PriceFair Value (Est)Discount (Est)
LPP (WSE:LPP)PLN15430.00PLN30843.2850%
Etteplan Oyj (HLSE:ETTE)€10.95€21.7049.5%
3U Holding (XTRA:UUU)€1.405€2.7949.6%
Dätwyler Holding (SWX:DAE)CHF108.40CHF213.9449.3%
DigiTouch (BIT:DGT)€1.595€3.1248.9%
Norsk Titanium (OB:NTI)NOK2.045NOK4.0949.9%
Figeac Aero Société Anonyme (ENXTPA:FGA)€7.42€14.7049.5%
Wall to Wall Group (OM:WTW A)SEK56.00SEK111.5849.8%
PowerCell Sweden (OM:PCELL)SEK24.36SEK48.1549.4%
Hybrid Software Group (ENXTBR:HYSG)€3.48€6.8148.9%

Click here to see the full list of 188 stocks from our Undervalued European Stocks Based On Cash Flows screener.

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

GVS (BIT:GVS)

Overview: GVS S.p.A. and its subsidiaries manufacture and distribute filter solutions for healthcare, life sciences, energy, mobility, and health and safety sectors globally, with a market cap of €738.64 million.

Operations: The company's revenue segments include €428.50 million from Plastics & Rubber.

Estimated Discount To Fair Value: 10%

GVS S.p.A. is trading at €3.91, approximately 10% below its estimated fair value of €4.35, suggesting it may be undervalued based on cash flows despite a high debt level and recent share price volatility. The company reported a significant net income increase to €33.4 million in 2024 from €13.6 million the previous year, with earnings expected to grow significantly by 20.92% annually, outpacing the Italian market's growth rate of 7.5%.

BIT:GVS Discounted Cash Flow as at Apr 2025
BIT:GVS Discounted Cash Flow as at Apr 2025

Sword Group (ENXTPA:SWP)

Overview: Sword Group S.E. offers IT and software solutions globally, with a market cap of €281.19 million.

Operations: The company generates revenue through its provision of IT and software solutions on a global scale.

Estimated Discount To Fair Value: 42.3%

Sword Group is trading at €29.7, significantly below its estimated fair value of €51.5, highlighting potential undervaluation based on cash flows. Analysts predict a 47.6% rise in stock price and forecast earnings growth of 15.1% annually, surpassing the French market's rate of 12.7%. Recent earnings show steady sales growth to €323.02 million, though net income slightly decreased to €21.81 million from last year’s figures amidst strategic expansion with a new WHO contract.

ENXTPA:SWP Discounted Cash Flow as at Apr 2025
ENXTPA:SWP Discounted Cash Flow as at Apr 2025

Grupa Pracuj (WSE:GPP)

Overview: Grupa Pracuj S.A. is a prominent HR technology platform offering online job posting sites and HR Software SaaS solutions for recruitment, retention, and development across Poland, Ukraine, Germany, Austria, and Switzerland with a market cap of PLN3.62 billion.

Operations: The company's revenue is primarily derived from its Staffing & Outsourcing Services segment, which generated PLN756.07 million.

Estimated Discount To Fair Value: 46.6%

Grupa Pracuj is trading at PLN 53, well below its estimated fair value of PLN 99.33, suggesting undervaluation based on cash flows. Analysts expect a 24.5% stock price increase and forecast earnings growth of 14.1% annually, outpacing the Polish market's rate of 12.8%. The company recently announced a dividend of PLN 2.10 per share despite an unstable dividend history, indicating cautious optimism amidst steady revenue growth projections at 8.6% annually.

WSE:GPP Discounted Cash Flow as at Apr 2025
WSE:GPP Discounted Cash Flow as at Apr 2025

Key Takeaways

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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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