As European markets navigate the complexities of geopolitical tensions and economic shifts, indices such as the STOXX Europe 600 have experienced declines, reflecting broader concerns. In this environment, identifying stocks that may be trading below their estimated value can provide investors with opportunities to potentially benefit from market inefficiencies.
|
Name |
Current Price |
Fair Value (Est) |
Discount (Est) |
|
TTS (Transport Trade Services) (BVB:TTS) |
RON4.29 |
RON8.47 |
49.4% |
|
Sparebank 68° Nord (OB:SB68) |
NOK182.98 |
NOK357.54 |
48.8% |
|
Selvita (WSE:SLV) |
PLN28.70 |
PLN56.89 |
49.6% |
|
Lingotes Especiales (BME:LGT) |
€6.00 |
€11.87 |
49.4% |
|
Laboratorios Farmaceuticos Rovi (BME:ROVI) |
€54.00 |
€104.47 |
48.3% |
|
Koskisen Oyj (HLSE:KOSKI) |
€8.84 |
€17.31 |
48.9% |
|
Galderma Group (SWX:GALD) |
CHF111.30 |
CHF221.71 |
49.8% |
|
dormakaba Holding (SWX:DOKA) |
CHF723.00 |
CHF1400.15 |
48.4% |
|
Absolent Air Care Group (OM:ABSO) |
SEK209.00 |
SEK415.74 |
49.7% |
|
ABO Energy GmbH KGaA (XTRA:AB9) |
€36.50 |
€70.64 |
48.3% |
Here we highlight a subset of our preferred stocks from the screener.
Overview: Recordati Industria Chimica e Farmaceutica S.p.A. is a pharmaceutical company that researches, develops, produces, and sells its products across various international markets including Italy, the United States, and several European countries, with a market cap of approximately €11.20 billion.
Operations: Recordati generates revenue through its Rare Diseases segment, which contributes €891.12 million, and its Specialty & Primary Care segment, which accounts for €1.52 billion.
Estimated Discount To Fair Value: 11.3%
Recordati Industria Chimica e Farmaceutica is trading at €54.3, below its estimated fair value of €61.23, suggesting it may be undervalued based on discounted cash flows. Despite a high level of debt, the company forecasts earnings growth of 12.33% annually, outpacing the Italian market’s 6.4%. Recent FDA approval for ISTURISA® expands its market potential, while Q1 2025 results showed sales growth to €679.96 million from €607.82 million year-over-year.
Overview: Galderma Group AG is a global dermatology company with a market cap of CHF26.42 billion.
Operations: The company’s revenue segment is focused on dermatology, generating $4.44 billion.
Estimated Discount To Fair Value: 49.8%
Galderma Group, trading at CHF111.3, is significantly undervalued with a fair value estimate of CHF221.71. Its earnings are projected to grow 32% annually, surpassing the Swiss market’s average growth rate of 10.4%. The company recently expanded its U.S. operations and introduced innovative products like Nemluvio for skin diseases, enhancing its growth prospects despite recent share price volatility and a forecasted low return on equity in three years (12%).
Overview: Knorr-Bremse AG, along with its subsidiaries, specializes in developing, producing, and marketing brake systems for rail and commercial vehicles as well as other safety-critical systems globally, with a market cap of approximately €13.67 billion.
Operations: The company’s revenue is primarily derived from Rail Vehicle Systems, contributing €4.23 billion, and Commercial Vehicle Systems, which accounts for €3.79 billion.
Estimated Discount To Fair Value: 21.5%
Knorr-Bremse, trading at €84.8, is undervalued relative to its fair value estimate of €108. Its earnings are forecasted to grow significantly at 23.2% annually, outpacing the German market’s growth rate of 16.4%. Despite a recent decline in quarterly revenue and net income compared to last year, the company maintains strong future prospects with confirmed guidance for revenues between €8.1 billion and €8.4 billion for fiscal year 2025.
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 BIT:REC SWX:GALD and XTRA:KBX.
This article was originally published by Simply Wall St.
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