European Stocks Priced Below Estimated Value In August 2025

As European markets experience a lift, buoyed by expectations of lower U.S. borrowing costs, investors are increasingly looking for opportunities in undervalued stocks across the continent. Identifying stocks priced below their estimated value can be particularly appealing when business activity is on the rise and manufacturing shows robust growth, as it may signal potential gains in a recovering economic environment.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name	Current Price	Fair Value (Est)	Discount (Est)
Truecaller (OM:TRUE B)	SEK45.08	SEK86.12	47.7%
Robit Oyj (HLSE:ROBIT)	€1.155	€2.26	48.9%
Lingotes Especiales (BME:LGT)	€5.95	€11.43	48%
Hanza (OM:HANZA)	SEK110.80	SEK220.35	49.7%
Exel Composites Oyj (HLSE:EXL1V)	€0.388	€0.75	47.9%
Echo Investment (WSE:ECH)	PLN5.54	PLN10.71	48.3%
Canatu Oyj (HLSE:CANATU)	€9.18	€17.85	48.6%
ATON Green Storage (BIT:ATON)	€2.09	€4.09	48.9%
Aquila Part Prod Com (BVB:AQ)	RON1.452	RON2.85	49.1%
ABO Energy GmbH KGaA (XTRA:AB9)	€37.00	€71.97	48.6%

Click here to see the full list of 209 stocks from our Undervalued European Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

SmartCraft (OB:SMCRT)

Overview: SmartCraft ASA offers software solutions tailored for the construction industry across Norway, Sweden, Finland, and the United Kingdom, with a market capitalization of NOK4.63 billion.

Operations: Revenue segments for SmartCraft ASA in the construction software sector span Norway, Sweden, Finland, and the United Kingdom.

Estimated Discount To Fair Value: 31.8%

SmartCraft ASA is trading at NOK 28, significantly below its estimated fair value of NOK 41.04, indicating potential undervaluation based on cash flows. Recent earnings results show steady revenue growth with NOK 140.6 million in Q2 2025 compared to NOK 133.04 million a year ago, while net income slightly increased to NOK 27.82 million from NOK 27.02 million last year. Despite a volatile share price recently, the company's earnings are forecast to grow substantially at an annual rate of 24%.

• Our comprehensive growth report raises the possibility that SmartCraft is poised for substantial financial growth.
• Click here to discover the nuances of SmartCraft with our detailed financial health report.

Invisio (OM:IVSO)

Overview: Invisio AB (publ) develops and sells communication and hearing protection systems for defense, law enforcement, and security professionals globally, with a market cap of SEK14.20 billion.

Operations: Invisio's revenue is primarily derived from its Aerospace & Defense segment, which generated SEK1.71 billion.

Estimated Discount To Fair Value: 15.8%

Invisio AB is trading at SEK 311.5, below its estimated fair value of SEK 369.82, reflecting potential undervaluation based on cash flows. Despite recent declines in sales and net income for Q2 2025, with sales at SEK 426.9 million compared to SEK 552.7 million last year, earnings are forecast to grow significantly at an annual rate of over 31%. A substantial order from a new European client valued at approximately SEK 145 million bolsters future prospects.

• The analysis detailed in our Invisio growth report hints at robust future financial performance.
• Delve into the full analysis health report here for a deeper understanding of Invisio.

PSI Software (XTRA:PSAN)

Overview: PSI Software SE develops and integrates software solutions to optimize energy and material flows for global utilities and industries, with a market cap of €435.21 million.

Operations: The company's revenue segments include Logistics (€34.23 million), Discrete Manufacturing (€33.56 million), Grid & Energy Management (€129.01 million), and Process Industries & Metals (€71.86 million).

Estimated Discount To Fair Value: 41.4%

PSI Software SE is trading at €28.1, significantly below its estimated fair value of €47.96, suggesting potential undervaluation based on cash flows. Recent earnings show improvement with a reduced net loss of €1.7 million in Q2 2025 compared to the previous year’s €6.14 million loss, and revenue growth of around 10% is expected for 2025. The company is forecast to become profitable within three years, outpacing average market profit growth expectations.

• Our growth report here indicates PSI Software may be poised for an improving outlook.
• Navigate through the intricacies of PSI Software with our comprehensive financial health report here.

Make It Happen

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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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