European Stocks That May Be Trading Below Their Estimated Value

Amid a mixed performance in European markets, with the pan-European STOXX Europe 600 Index slightly down and varied results across major indices like Germany’s DAX and France’s CAC 40, investors are closely watching economic indicators and central bank policies for signs of future trends. In this environment, identifying stocks that may be undervalued requires a keen eye on fundamentals such as strong financial health, potential for growth despite broader market fluctuations, and resilience to economic shifts.

Click here to see the full list of 195 stocks from our Undervalued European Stocks Based On Cash Flows screener.

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

Overview: Lisi S.A. is a company that designs and produces assembly and component solutions for the aerospace, automotive, and medical sectors globally, with a market cap of €2.30 billion.

Operations: The company’s revenue is primarily derived from three segments: LISI Aerospace at €1.13 billion, LISI Automotive at €561.21 million, and LISI Medical at €183.94 million.

Estimated Discount To Fair Value: 10.2%

Lisi is trading at €50.4, below its estimated fair value of €56.15, indicating it may be undervalued based on discounted cash flows. Despite high debt levels and low forecasted return on equity (10.9% in three years), Lisi’s earnings are expected to grow significantly at 31.82% annually, outpacing the French market’s growth rate of 12.2%. This positions Lisi as a potentially attractive option for investors focusing on cash flow-driven valuations within Europe.

ENXTPA:FII Discounted Cash Flow as at Dec 2025

Overview: Rosenbauer International AG provides systems for preventive firefighting and disaster protection technology globally, with a market cap of €464.10 million.

Operations: Rosenbauer International AG generates revenue through its segments in Europe (€659.01 million), the Americas (€397.37 million), Asia-Pacific (€189.13 million), Middle East & Africa (€149.65 million), and Preventive Fire Protection (€20.21 million).

Estimated Discount To Fair Value: 34.6%

Rosenbauer International, trading at €45.5, is significantly undervalued with a fair value estimate of €69.53 based on discounted cash flows. Recent earnings show robust growth, with net income rising to €14.37 million in Q3 2025 from €1.78 million the previous year, despite past shareholder dilution and interest coverage challenges. Forecasts predict substantial annual earnings growth of 43.12%, exceeding Austrian market expectations and highlighting Rosenbauer’s potential for investors focused on cash flow valuations in Europe.

WBAG:ROS Discounted Cash Flow as at Dec 2025

Overview: Shoper S.A. offers software as a service solutions for e-commerce in Poland and has a market cap of PLN1.49 billion.

Operations: Shoper S.A.’s revenue is derived from two main segments: Solutions, contributing PLN168.70 million, and Subscriptions, accounting for PLN44.74 million.

Estimated Discount To Fair Value: 12.1%

Shoper S.A., trading at PLN 52.8, is slightly undervalued compared to its fair value estimate of PLN 60.1 based on discounted cash flows. Recent earnings for the nine months ended September 30, 2025, showed revenue growth to PLN 158.31 million and net income rising to PLN 29.52 million, reflecting strong financial performance. Earnings are forecasted to grow significantly at an annual rate of over 22%, surpassing Polish market expectations and indicating robust cash flow potential for investors.

WSE:SHO Discounted Cash Flow as at Dec 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 ENXTPA:FII WBAG:ROS and WSE:SHO.

This article was originally published by Simply Wall St.

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