3 European Stocks Estimated To Be Trading Up To 39.9% Below Intrinsic Value

As European markets experience volatility, with the pan-European STOXX Europe 600 Index hitting a new high before ending the week broadly unchanged, investors are navigating concerns about AI disruption and interpreting strong U.S. jobs data. In this environment, identifying stocks trading below their intrinsic value can be a prudent strategy for those looking to capitalize on potential market inefficiencies.

Click here to see the full list of 195 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Let’s take a closer look at a couple of our picks from the screened companies.

Overview: Outokumpu Oyj is a global producer and seller of stainless steel products, operating in multiple regions including Europe, North America, and the Asia-Pacific, with a market cap of €2.39 billion.

Operations: The company’s revenue segments include stainless steel products sold across Finland, Germany, Italy, the United Kingdom, other European countries, North America, and the Asia-Pacific.

Estimated Discount To Fair Value: 35.6%

Outokumpu Oyj trades at €5.08, significantly below its estimated future cash flow value of €7.89, suggesting undervaluation. Despite a forecasted annual profit growth above market averages and expected profitability within three years, the company faces challenges with low return on equity projections and slower revenue growth compared to peers. Recent restructuring aims for €100 million in cost savings by 2027 amidst weak demand and competition pressures, impacting approximately 650 positions across Europe.

• Our earnings growth report unveils the potential for significant increases in Outokumpu Oyj’s future results.

• Dive into the specifics of Outokumpu Oyj here with our thorough financial health report.

Overview: Nokian Renkaat Oyj is a company that develops and manufactures tires for passenger cars, trucks, and heavy machinery across the Nordics, Europe, the Americas, and other international markets with a market cap of €1.56 billion.

Operations: The company’s revenue segments consist of €363.80 million from Vianor, €232 million from Heavy Tyres, and €858.40 million from Passenger Car Tyres.