As trade tensions show signs of easing, European markets have experienced a notable upswing, with the pan-European STOXX Europe 600 Index rising by 2.77% and major indices like Germany’s DAX and France’s CAC 40 posting significant gains. In this environment, identifying stocks trading below their estimated worth can present valuable opportunities for investors seeking to capitalize on market optimism while mitigating risk through careful selection based on intrinsic value and potential for growth.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Click here to see the full list of 172 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Scandi Standard

Overview: Scandi Standard AB (publ) is engaged in the production and sale of chilled, frozen, and ready-to-eat chicken products across various countries including Sweden, Norway, Ireland, Denmark, Finland, Germany, the United Kingdom, and other international markets with a market capitalization of approximately SEK5.76 billion.

Operations: The company's revenue is derived from the production and sale of chilled, frozen, and ready-to-eat chicken products across multiple international markets.

Estimated Discount To Fair Value: 47.1%

Scandi Standard is trading at SEK 88.1, significantly below its estimated fair value of SEK 166.41, highlighting its undervaluation based on cash flows. Despite a high debt level and a forecasted low return on equity (13.7%), the company shows promising growth prospects with earnings expected to grow over 21% annually, surpassing the Swedish market's average growth rate. Recent Q1 results show sales increased to SEK 3,376 million from SEK 3,160 million year-on-year, though net income slightly declined to SEK 66 million from SEK 70 million.

• Our expertly prepared growth report on Scandi Standard implies its future financial outlook may be stronger than recent results.
• Navigate through the intricacies of Scandi Standard with our comprehensive financial health report here.

Synektik Spólka Akcyjna

Overview: Synektik Spólka Akcyjna offers products, services, and IT solutions for surgery, diagnostic imaging, and nuclear medicine applications in Poland, with a market cap of PLN1.93 billion.

Operations: Synektik Spólka Akcyjna generates revenue through its offerings in surgery, diagnostic imaging, and nuclear medicine applications within Poland.

Estimated Discount To Fair Value: 24.6%

Synektik Spólka Akcyjna is trading at PLN 226.4, considerably below its estimated fair value of PLN 300.24, indicating undervaluation based on cash flows. Despite a recent decline in quarterly revenue to PLN 203.13 million from the previous year's PLN 271.3 million, earnings per share remain relatively stable. The company shows strong growth potential with forecasted earnings growth of 15.6% annually, outpacing both its revenue growth and the broader Polish market's profit expansion rate.

• The growth report we've compiled suggests that Synektik Spólka Akcyjna's future prospects could be on the up.
• Delve into the full analysis health report here for a deeper understanding of Synektik Spólka Akcyjna.

Basler

Overview: Basler Aktiengesellschaft develops, manufactures, and sells digital cameras for professional users both in Germany and internationally, with a market cap of €273.61 million.

Operations: The company's revenue is primarily derived from its digital camera segment, which generated €183.72 million.

Estimated Discount To Fair Value: 31.7%

Basler AG is trading at €8.9, significantly below its estimated fair value of €13.03, highlighting undervaluation based on cash flows. Despite a net loss of €13.77 million in 2024, the company anticipates revenue growth surpassing the German market average with an annual rate of 10.7%. Management's guidance for 2025 projects sales between €186 million and €198 million, with expectations for profitability within three years despite geopolitical uncertainties affecting visibility.

• Insights from our recent growth report point to a promising forecast for Basler's business outlook.
• Click to explore a detailed breakdown of our findings in Basler's balance sheet health report.

Where To Now?

• Embark on your investment journey to our 172 Undervalued European Stocks Based On Cash Flows selection here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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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 OM:SCST WSE:SNT and XTRA:BSL.

This article was originally published by Simply Wall St.

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