In recent weeks, the European market has faced challenges as major indices like the STOXX Europe 600 and Germany’s DAX have declined amid trade uncertainties and a stagnant economic environment. Despite these headwinds, opportunities may exist within small-cap stocks, particularly those with insider buying activity that can indicate potential confidence in their future prospects.

Name

PE

PS

Discount to Fair Value

Value Rating

Stelrad Group

13.1x

0.7x

36.95%

★★★★★☆

Instabank

10.2x

2.9x

23.48%

★★★★★☆

Lords Group Trading

NA

0.2x

4.74%

★★★★☆☆

CVS Group

45.1x

1.3x

38.07%

★★★★☆☆

Yubico

33.6x

4.8x

-33.06%

★★★☆☆☆

Oxford Instruments

40.1x

2.1x

18.51%

★★★☆☆☆

A.G. BARR

19.6x

1.9x

45.78%

★★★☆☆☆

SmartCraft

43.4x

7.8x

35.36%

★★★☆☆☆

Sabre Insurance Group

9.4x

1.7x

-15.64%

★★★☆☆☆

Seeing Machines

NA

2.8x

47.84%

★★★☆☆☆

Click here to see the full list of 51 stocks from our Undervalued European Small Caps With Insider Buying screener.

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

Simply Wall St Value Rating: ★★★★★★

Overview: Hollywood Bowl Group operates a chain of ten-pin bowling centers in the UK, focusing on providing family-friendly entertainment, with a market capitalization of approximately £0.60 billion.

Operations: The company’s revenue primarily stems from recreational activities, with the latest reported figure at £240.46 million. Over time, it has experienced fluctuations in its gross profit margin, which was 62.73% as of March 2025. Operating expenses and non-operating expenses are significant components of its cost structure, impacting net income margins that reached 11.89% in the same period.

PE: 14.9x

Hollywood Bowl Group, a small cap stock in Europe, shows potential for growth with earnings forecasted to rise 14% annually. Despite relying on more risky external borrowing for funding, the company reported sales of £129 million for H1 2025, up from £119 million the previous year. Net income slightly decreased to £20.6 million from £21.9 million. Insider confidence is evident with recent share purchases by executives in June 2025, reflecting optimism about future prospects amidst leadership changes and strategic initiatives.

LSE:BOWL Share price vs Value as at Aug 2025

LSE:BOWL Share price vs Value as at Aug 2025

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Supermarket Income REIT focuses on investing in supermarket property assets and has a market capitalization of approximately £1.41 billion.

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