In recent weeks, European markets have experienced a pullback, with major stock indexes like Germany's DAX and France's CAC 40 registering declines amid concerns over artificial intelligence-related stock valuations. As investors navigate these turbulent waters, identifying stocks that may be undervalued could present opportunities for those looking to capitalize on potential market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In Europe
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Witted Megacorp Oyj (HLSE:WITTED) | €1.36 | €2.67 | 49% |
| Vinext (BIT:VNXT) | €3.38 | €6.57 | 48.5% |
| Rusta (OM:RUSTA) | SEK64.50 | SEK126.76 | 49.1% |
| Roche Bobois (ENXTPA:RBO) | €35.40 | €69.69 | 49.2% |
| NEUCA (WSE:NEU) | PLN790.00 | PLN1553.92 | 49.2% |
| Exel Composites Oyj (HLSE:EXL1V) | €0.403 | €0.78 | 48.5% |
| Eleving Group (DB:OT8) | €1.64 | €3.20 | 48.7% |
| E-Globe (BIT:EGB) | €0.67 | €1.31 | 48.9% |
| B&S Group (ENXTAM:BSGR) | €5.94 | €11.85 | 49.9% |
| Allcore (BIT:CORE) | €1.34 | €2.66 | 49.7% |
Let's uncover some gems from our specialized screener.
Altri SGPS (ENXTLS:ALTR)
Overview: Altri SGPS is a company that produces and sells cellulosic fibers both in Portugal and internationally, with a market cap of €10 billion.
Operations: The company's revenue is primarily derived from the production and commercialization of cellulosic fibers, amounting to €733.50 million.
Estimated Discount To Fair Value: 19.3%
Altri SGPS is trading at €4.88, below its estimated fair value of €6.04, representing a 19.3% discount. Despite high debt levels and a dividend yield of 6.15% not fully covered by earnings, the company shows strong profit growth potential with earnings expected to grow significantly at 27% annually over the next three years, outpacing both its revenue growth and the broader Portuguese market's earnings growth rate of 14.2%.
- Our earnings growth report unveils the potential for significant increases in Altri SGPS' future results.
- Click here and access our complete balance sheet health report to understand the dynamics of Altri SGPS.
Roche Bobois (ENXTPA:RBO)
Overview: Roche Bobois S.A. is involved in the design and distribution of furniture both in France and internationally, with a market cap of €356.41 million.
Operations: The company's revenue is derived from several segments, including Roche Bobois USA/Canada (€138.48 million), Roche Bobois France (€108.61 million), Roche Bobois Europe excluding France (€101.65 million), Cuir Center (€42.37 million), and Roche Bobois Others Overseas (€20.80 million).
Estimated Discount To Fair Value: 49.2%
Roche Bobois is trading at €35.4, significantly below its estimated fair value of €69.69, indicating it may be undervalued by more than 20%. Despite a dividend yield of 3.53% not fully covered by earnings and stable revenue expectations for 2025, the company's earnings are projected to grow substantially at 23.6% annually over the next three years, surpassing both its revenue growth and the French market's profit growth rate of 12.2%.
- Insights from our recent growth report point to a promising forecast for Roche Bobois' business outlook.
- Take a closer look at Roche Bobois' balance sheet health here in our report.
BioGaia (OM:BIOG B)
Overview: BioGaia AB is a healthcare company that develops, manufactures, markets, and sells probiotic products for gut, oral, and immune health across various regions including Europe and the United States, with a market cap of SEK10.12 billion.
Operations: The company's revenue is primarily derived from its Pediatrics segment, which accounts for SEK1.09 billion, followed by the Adult Health segment at SEK357.59 million.
Estimated Discount To Fair Value: 41.2%
BioGaia's stock is trading at SEK 100, below its estimated fair value of SEK 169.98, suggesting it could be undervalued by over 20%. Despite a dividend yield of 6.9% not covered by free cash flows, the company's earnings are projected to grow significantly at 21.9% annually over the next three years, outpacing both revenue growth and the Swedish market's profit growth rate of 12.7%. Recent product innovations and strategic expansions further bolster its market position.
- Our comprehensive growth report raises the possibility that BioGaia is poised for substantial financial growth.
- Click here to discover the nuances of BioGaia with our detailed financial health report.
Next Steps
- Discover the full array of 191 Undervalued European Stocks Based On Cash Flows right 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.
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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.
Valuation is complex, but we're here to simplify it.
Discover if Roche Bobois might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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