3 European Stocks Estimated To Be Trading Below Intrinsic Value By Up To 47.7%

As the European markets experience a mix of modest gains and losses, with indices like Germany’s DAX and Italy’s FTSE MIB showing resilience against a backdrop of economic recovery, investors are increasingly on the lookout for opportunities that may be undervalued. In this context, identifying stocks trading below their intrinsic value can offer potential avenues for growth, especially when supported by strong fundamentals and favorable market conditions.

Click here to see the full list of 208 stocks from our Undervalued European Stocks Based On Cash Flows screener.

We’ll examine a selection from our screener results.

Overview: Ion Beam Applications SA designs, produces, and markets solutions for cancer diagnosis and treatments globally, with a market cap of €438.41 million.

Operations: Ion Beam Applications generates revenue through its cancer diagnosis and treatment solutions across Belgium, the United States, and international markets.

Estimated Discount To Fair Value: 47.7%

Ion Beam Applications appears undervalued based on cash flows, trading at €14.98, significantly below its estimated fair value of €28.64. Despite revenue growth forecasts lagging behind the Belgian market, earnings are expected to grow substantially at 29.8% annually, surpassing market averages. Recent contracts with leading institutions like MD Anderson Cancer Center and Seoul St. Mary’s Hospital highlight robust demand for IBA’s advanced proton therapy systems and X-ray technology solutions, potentially bolstering future cash flows.

ENXTBR:IBAB Discounted Cash Flow as at Jan 2026

Overview: Munters Group AB (publ) offers climate solutions across the Americas, Europe, the Middle East, Africa, and Asia with a market cap of SEK30.69 billion.

Operations: The company’s revenue segments include Air Tech at SEK7.58 billion, Food Tech at SEK3.56 billion, and Data Center Technologies at SEK5.90 billion.

Estimated Discount To Fair Value: 10.9%

Munters Group, trading at SEK 168.1, is slightly undervalued with a fair value estimate of SEK 188.68. Despite recent earnings declines, forecasts suggest significant annual profit growth of 37%, outpacing the Swedish market average. Recent substantial US orders for data center cooling solutions, totaling billions in SEK, underscore strong demand and potential cash flow enhancement. However, high debt levels and volatile share prices present challenges that may affect its financial stability and valuation appeal.

OM:MTRS Discounted Cash Flow as at Jan 2026

Overview: Ovzon AB (publ) is a Swedish company that provides mobile broadband services, with a market capitalization of approximately SEK6.15 billion.

Operations: The company generates revenue primarily from its Internet Telephone segment, which accounts for SEK571 million.

Estimated Discount To Fair Value: 16.5%

Ovzon, trading at SEK 55.1, is undervalued compared to its fair value estimate of SEK 66. Recent agreements with European defense organizations, including a SEK 240 million contract for the Ovzon 3 SATCOM solution, highlight strong demand and potential cash flow improvements. Despite a volatile share price and low forecasted return on equity of 13.1%, earnings are expected to grow significantly by over 77% annually as the company becomes profitable within three years.

OM:OVZON Discounted Cash Flow as at Jan 2026

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 ENXTBR:IBAB OM:MTRS and OM:OVZON.

This article was originally published by Simply Wall St.

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