Amidst a backdrop of easing inflation and potential interest rate cuts by the European Central Bank, the European markets have shown resilience with indices like Germany’s DAX and Italy’s FTSE MIB posting gains. In such an environment, identifying stocks that are trading below their estimated value can present unique opportunities for investors seeking to capitalize on market inefficiencies.

Name

Current Price

Fair Value (Est)

Discount (Est)

Micro Systemation (OM:MSAB B)

SEK48.30

SEK95.13

49.2%

CTT Systems (OM:CTT)

SEK208.00

SEK406.70

48.9%

Absolent Air Care Group (OM:ABSO)

SEK211.00

SEK416.98

49.4%

Sparebank 68° Nord (OB:SB68)

NOK179.40

NOK358.38

49.9%

USU Software (HMSE:OSP2)

€25.485

€50.83

49.9%

Vestas Wind Systems (CPSE:VWS)

DKK106.20

DKK209.54

49.3%

Montana Aerospace (SWX:AERO)

CHF19.72

CHF38.66

49%

doValue (BIT:DOV)

€2.31

€4.50

48.7%

3U Holding (XTRA:UUU)

€1.495

€2.99

49.9%

VIGO Photonics (WSE:VGO)

PLN526.00

PLN1024.74

48.7%

Click here to see the full list of 182 stocks from our Undervalued European Stocks Based On Cash Flows screener.

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

Overview: Atea ASA offers IT infrastructure and related solutions to businesses and public sector organizations across the Nordic countries and Baltic regions, with a market cap of NOK16.73 billion.

Operations: The company’s revenue segments are comprised of NOK9 billion from Norway, NOK13.06 billion from Sweden, NOK8.25 billion from Denmark, NOK3.57 billion from Finland, and NOK1.80 billion from the Baltics, with Group Shared Services contributing an additional NOK10.81 billion.

Estimated Discount To Fair Value: 39.7%

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Atea is trading at NOK 150.2, significantly below its estimated fair value of NOK 249, suggesting it may be undervalued based on cash flows. The company’s revenue and earnings are forecast to grow faster than the Norwegian market, with earnings expected to rise by 19.7% annually. Despite a dividend yield of 4.66%, it’s not well covered by earnings, raising sustainability concerns. Recent Q1 results showed increased sales but a decline in net income year-over-year.

OB:ATEA Discounted Cash Flow as at Jun 2025

OB:ATEA Discounted Cash Flow as at Jun 2025

Overview: Hoist Finance AB (publ) is a credit market company involved in loan acquisition and management across Europe, with a market cap of SEK8.36 billion.

Operations: The company’s revenue segments consist of SEK1.16 billion from secured loans and SEK2.99 billion from unsecured loans.

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