3 European Stock Picks Estimated To Be Trading At Up To 46.8% Discount

Simply Wall St

Mon, Jul 7, 2025, 1:37 AM 4 min read

As the pan-European STOXX Europe 600 Index remains relatively flat and major stock indexes exhibit mixed returns, investors are keenly observing economic indicators such as inflation rates and labor market stability across the eurozone. In this environment, identifying stocks that are trading at a discount can offer potential value opportunities for those looking to capitalize on market inefficiencies.

Click here to see the full list of 177 stocks from our Undervalued European Stocks Based On Cash Flows screener.

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

Overview: Qt Group Oyj provides cross-platform solutions for the software development lifecycle across Finland, Europe, the Asia Pacific, and North America, with a market cap of €1.55 billion.

Operations: The company’s revenue segment includes Software Development Tools, generating €211.22 million.

Estimated Discount To Fair Value: 45.9%

Qt Group Oyj, trading at €61.05, is significantly undervalued based on its discounted cash flow valuation of €112.92. Despite recent earnings decline, with Q1 net income dropping to €4.97 million from €7.62 million year-on-year, the company forecasts a 10-20% sales increase for 2025 and strong revenue growth at 12.6% annually—outpacing the Finnish market average of 3.6%. Recent strategic expansions in platform capabilities and AI investments further enhance its long-term value proposition amidst volatile share prices.

• According our earnings growth report, there’s an indication that Qt Group Oyj might be ready to expand.

• Unlock comprehensive insights into our analysis of Qt Group Oyj stock in this financial health report.

Overview: TF Bank AB (publ) is a digital bank offering consumer banking services and e-commerce solutions through its proprietary IT platform in Sweden, with a market cap of SEK8.34 billion.

Operations: The company’s revenue segments consist of Credit Cards generating SEK677.50 million, Consumer Lending contributing SEK611.92 million, and Ecommerce Solutions (excluding Credit Cards) adding SEK393.80 million.