European Market Gems 3 Stocks Estimated To Be Trading Below Intrinsic Value

Simply Wall St

Fri, October 31, 2025 at 1:38 AM EDT 4 min read

As European markets experience a notable upswing, with the STOXX Europe 600 Index and major stock indexes like Germany’s DAX and the UK’s FTSE 100 showing strong gains, investors are increasingly interested in identifying stocks that may be trading below their intrinsic value. In this environment of rising business activity and improving consumer confidence, finding undervalued stocks can offer potential opportunities for those looking to capitalize on market inefficiencies.

Click here to see the full list of 205 stocks from our Undervalued European Stocks Based On Cash Flows screener.

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

Overview: Recordati Industria Chimica e Farmaceutica S.p.A. is a pharmaceutical company that researches, develops, produces, and sells drugs across various countries including Italy, the United States, and several European nations with a market capitalization of approximately €10.63 billion.

Operations: Recordati’s revenue is primarily derived from two segments: Rare Diseases, contributing €950.29 million, and Specialty & Primary Care, generating €1.53 billion.

Estimated Discount To Fair Value: 22.9%

Recordati Industria Chimica e Farmaceutica is trading 22.9% below its estimated fair value of €66.82, with the current price at €51.55, making it potentially undervalued based on cash flows. Despite a high level of debt and a dividend yield of 2.46% not well covered by free cash flows, the company’s earnings are forecast to grow faster than the Italian market at 14.2% annually, supported by a very high expected return on equity of 41.5%. Recent buybacks totaling €104.7 million may further enhance shareholder value, while incoming CFO Mike McClellan’s extensive industry experience could bolster financial strategy and growth initiatives from January 2026 onward.

• Insights from our recent growth report point to a promising forecast for Recordati Industria Chimica e Farmaceutica’s business outlook.

• Unlock comprehensive insights into our analysis of Recordati Industria Chimica e Farmaceutica stock in this financial health report.