Discover 3 European Stocks That May Be Trading Below Their Estimated Value

As European markets experience a period of cautious optimism, highlighted by a recent uptick in the STOXX Europe 600 Index following trade negotiation delays and slowing inflation, investors are keenly observing potential opportunities that might arise from these developments. In this context, identifying stocks that may be trading below their estimated value becomes particularly relevant, as such investments could offer attractive prospects amid shifting economic conditions and policy adjustments.

Name

Current Price

Fair Value (Est)

Discount (Est)

VIGO Photonics (WSE:VGO)

PLN526.00

PLN1024.74

48.7%

Vestas Wind Systems (CPSE:VWS)

DKK106.20

DKK209.54

49.3%

USU Software (HMSE:OSP2)

€25.485

€50.86

49.9%

Sparebank 68° Nord (OB:SB68)

NOK179.40

NOK358.38

49.9%

Montana Aerospace (SWX:AERO)

CHF19.72

CHF38.66

49%

Micro Systemation (OM:MSAB B)

SEK48.30

SEK95.13

49.2%

doValue (BIT:DOV)

€2.31

€4.50

48.7%

CTT Systems (OM:CTT)

SEK208.00

SEK406.70

48.9%

Absolent Air Care Group (OM:ABSO)

SEK211.00

SEK416.98

49.4%

3U Holding (XTRA:UUU)

€1.495

€2.99

49.9%

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

Let’s dive into some prime choices out of the screener.

Overview: Xvivo Perfusion AB (publ) is a Swedish medical technology company that develops and markets machines and perfusion solutions for assessing and maintaining organs in optimal condition for transplantation, with a market cap of SEK9.95 billion.

Operations: Xvivo Perfusion generates its revenue from three segments: Services (SEK86.95 million), Thoracic (SEK576.05 million), and Abdominal (SEK191.98 million).

Estimated Discount To Fair Value: 30.7%

Xvivo Perfusion is trading at SEK316, significantly below its estimated fair value of SEK456.08, suggesting potential undervaluation based on cash flows. Analysts forecast robust revenue growth of 29% annually and earnings growth of 48.1%, both outpacing the Swedish market averages. Despite a recent quarterly net loss of SEK12.4 million, the company’s long-term growth prospects remain strong with expected significant annual profit increases over the next three years.

OM:XVIVO Discounted Cash Flow as at Jun 2025

Overview: dormakaba Holding AG offers access and security solutions globally, with a market capitalization of CHF3.07 billion.

Operations: The company’s revenue segments include Access Solutions at CHF2.44 billion and Key & Wall Solutions and OEM at CHF496.40 million.

Story Continues

Estimated Discount To Fair Value: 47.9%

Dormakaba Holding is trading at CHF732, well below its estimated fair value of CHF1404.8, indicating it may be undervalued based on cash flows. Analysts anticipate earnings growth of 28.1% annually, surpassing the Swiss market average of 10.7%, though revenue growth is expected to lag slightly behind the market at 4% per year. Despite high debt levels and large one-off items affecting results, strong profit growth prospects enhance its appeal as an investment opportunity in Europe.

SWX:DOKA Discounted Cash Flow as at Jun 2025

Overview: Atal S.A. is involved in the development and sale of residential buildings in Poland, with a market cap of PLN2.76 billion.

Operations: The company’s revenue is primarily derived from its real estate development activity, amounting to PLN1.22 billion, with additional income from rental services totaling PLN11.16 million.

Estimated Discount To Fair Value: 13.1%

Atal S.A. trades at PLN63.9, below its estimated fair value of PLN73.54, suggesting potential undervaluation based on cash flows. Despite recent declines in earnings and dividends not being well covered by cash flows, Atal’s earnings are expected to grow significantly at 21.9% annually, outpacing the Polish market average of 13.8%. However, revenue growth projections remain modest at 15.1%, and debt coverage through operating cash flow is inadequate, presenting some financial challenges.

WSE:1AT Discounted Cash Flow as at Jun 2025

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.

Companies discussed in this article include OM:XVIVO SWX:DOKA and WSE:1AT.

This article was originally published by Simply Wall St.

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Discover 3 European Stocks That May Be Trading Below Their Estimated Value

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