In recent weeks, European markets have experienced a pullback, with the pan-European STOXX Europe 600 Index declining by 1.24%, driven largely by concerns overvaluations in AI-related stocks. As broader market sentiment remains cautious, investors are increasingly looking towards small-cap companies that exhibit strong fundamentals and potential for growth as promising opportunities amidst these conditions.

Name

PE

PS

Discount to Fair Value

Value Rating

Cairn Homes

11.8x

1.5x

31.31%

★★★★★★

Bytes Technology Group

15.8x

3.8x

25.87%

★★★★★☆

Foxtons Group

10.0x

0.9x

43.25%

★★★★★☆

Boozt

17.3x

0.8x

49.58%

★★★★★☆

Speedy Hire

NA

0.3x

27.05%

★★★★★☆

Senior

24.5x

0.8x

26.34%

★★★★☆☆

Social Housing REIT

NA

6.9x

37.76%

★★★★☆☆

Fastighets AB Trianon

9.8x

4.7x

-21.31%

★★★★☆☆

Pexip Holding

31.5x

5.0x

25.50%

★★★☆☆☆

Fiskars Oyj Abp

40.0x

0.9x

24.04%

★★★☆☆☆

Click here to see the full list of 61 stocks from our Undervalued European Small Caps With Insider Buying screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Simply Wall St Value Rating: ★★★★★★

Overview: Cairn Homes is a leading Irish homebuilder focused on building and property development, with a market cap of approximately €0.65 billion.

Operations: The primary revenue stream is from building and property development, with a recent figure of €778.20 million. The cost of goods sold (COGS) significantly impacts profitability, as evidenced by the gross profit margin reaching 21.81% in the latest period. Operating expenses include general and administrative costs, which recently amounted to €38.43 million, alongside non-operating expenses of €31.90 million affecting net income outcomes.

PE: 11.8x

Cairn Homes, operating in the European market, shows signs of being undervalued despite recent financial challenges. Their H1 2025 sales dropped to €284 million from €366 million the previous year, with net income decreasing to €32 million from €47 million. However, earnings are forecasted to grow annually by 15%. Insider confidence is evident with share purchases in early 2025. The company also increased its interim dividend by 8% in September 2025, reflecting a commitment to shareholder returns amidst external borrowing risks.

LSE:CRN Share price vs Value as at Nov 2025

LSE:CRN Share price vs Value as at Nov 2025

Simply Wall St Value Rating: ★★★★★☆

Overview: MJ Gleeson operates primarily through its Gleeson Homes segment, focusing on building affordable homes, and its Gleeson Land segment, specializing in land promotion, with a market cap of £0.43 billion.

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