As European markets navigate the aftermath of the U.S. federal government reopening, with indices like Germany’s DAX and France’s CAC 40 showing gains, small-cap stocks in Europe are drawing attention amid cooling sentiment on artificial intelligence. In this environment, identifying promising small-cap investments often involves looking for companies that demonstrate resilience and potential for growth despite broader economic uncertainties.

Name

PE

PS

Discount to Fair Value

Value Rating

Cairn Homes

11.8x

1.5x

31.51%

★★★★★★

Eurocell

16.6x

0.3x

39.79%

★★★★★☆

Bytes Technology Group

15.7x

3.8x

27.14%

★★★★★☆

Foxtons Group

10.3x

0.9x

40.89%

★★★★★☆

Speedy Hire

NA

0.3x

26.25%

★★★★★☆

Tokmanni Group Oyj

10.9x

0.2x

46.47%

★★★★★☆

Senior

24.2x

0.8x

27.41%

★★★★★☆

Eastnine

11.7x

7.4x

49.68%

★★★★☆☆

Social Housing REIT

NA

6.7x

38.52%

★★★★☆☆

Fiskars Oyj Abp

40.3x

0.9x

23.65%

★★★☆☆☆

Click here to see the full list of 64 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: James Halstead is a company engaged in the manufacture and distribution of flooring products, with a market capitalization of £1.02 billion.

Operations: The company generates revenue primarily from the manufacture and distribution of flooring products, with recent revenue reported at £261.97 million. Operating expenses, including sales and marketing costs of £48.83 million, significantly impact net income, which stands at £40.61 million for the latest period. The gross profit margin has shown variability over time but is currently at 44.50%.

PE: 13.9x

James Halstead, a European flooring manufacturer, presents an intriguing opportunity in the small-cap space. Despite a slight dip in sales to £261.97 million for the year ending June 2025, insider confidence is evident with recent share purchases. The company maintains a consistent dividend growth streak, proposing a record final dividend of 6.05 pence for December 2025. Earnings are projected to grow annually by 4.22%, suggesting potential value amidst its external borrowing reliance.

AIM:JHD Share price vs Value as at Nov 2025

AIM:JHD Share price vs Value as at Nov 2025

Simply Wall St Value Rating: ★★★★★★

Overview: Qt Group Oyj is a technology company specializing in software development tools, with operations focused on providing solutions for creating cross-platform applications, and it has a market capitalization of approximately €1.41 billion.

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