European Stocks That May Be Undervalued In January 2026

As the European markets navigate renewed trade and geopolitical uncertainties, with major indices like France's CAC 40 and Germany's DAX experiencing declines, investors are increasingly focused on identifying opportunities within this challenging environment. Amidst these fluctuations, finding undervalued stocks can be a strategic approach to potentially benefit from market inefficiencies and capitalize on businesses that may not fully reflect their intrinsic value due to current market conditions.

Top 10 Undervalued Stocks Based On Cash Flows In Europe

Name Current Price Fair Value (Est) Discount (Est) Sitowise Group Oyj (HLSE:SITOWS) €2.24 €4.40 49% Kitron (OB:KIT) NOK81.85 NOK163.57 50% KB Components (OM:KBC) SEK42.00 SEK82.08 48.8% Integrated System Credit Consulting Fintech (BIT:ISC) €1.02 €2.00 48.9% DigiTouch (BIT:DGT) €1.97 €3.91 49.6% cyan (XTRA:CYR) €2.30 €4.54 49.4% B&S Group (ENXTAM:BSGR) €5.85 €11.66 49.8% Benefit Systems (WSE:BFT) PLN3850.00 PLN7580.82 49.2% Andritz (WBAG:ANDR) €72.90 €142.20 48.7% ad pepper media International (XTRA:APM) €3.04 €5.96 49%

Click here to see the full list of 223 stocks from our Undervalued European Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

ALSO Holding

Overview: ALSO Holding AG, with a market cap of CHF2.51 billion, operates as a technology services provider for the ICT industry across Switzerland, Germany, the Netherlands, Poland, and internationally.

Operations: The company's revenue segments are Central Europe with €6.16 billion and Northern/Eastern Europe with €5.46 billion.

Estimated Discount To Fair Value: 40.9%

ALSO Holding is trading at CHF205, significantly below its estimated future cash flow value of CHF346.67, indicating it may be undervalued based on cash flows. Analysts expect the stock price to rise by 52.7%. Earnings are forecast to grow at a robust 23.06% per year, outpacing the Swiss market's growth rate of 10.3%. However, its dividend yield of 2.37% isn't well covered by free cash flows, which could be a concern for income-focused investors.

Our expertly prepared growth report on ALSO Holding implies its future financial outlook may be stronger than recent results. Delve into the full analysis health report here for a deeper understanding of ALSO Holding.SWX:ALSN Discounted Cash Flow as at Jan 2026

Cyber_Folks

Overview: Cyber_Folks S.A. is a global technology company with a market capitalization of PLN3.24 billion.

Operations: The company's revenue segments include VERCOM at PLN472 million, E-Commerce at PLN144.09 million, and Cyber_Folks at PLN176.49 million, with a minor contribution from Corporate at PLN1.83 million.

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Estimated Discount To Fair Value: 46.9%

Cyber_Folks is trading at PLN 212, well below its estimated future cash flow value of PLN 399.26, highlighting potential undervaluation. Despite a recent decline in net income and profit margins due to large one-off items, earnings are forecast to grow significantly at 41.34% annually, surpassing the Polish market's growth rate. However, it carries a high level of debt and has seen profit margins fall from 19% to 7.6%, which may warrant caution for investors focused on financial stability.

Upon reviewing our latest growth report, Cyber_Folks' projected financial performance appears quite optimistic. Click here and access our complete balance sheet health report to understand the dynamics of Cyber_Folks.WSE:CBF Discounted Cash Flow as at Jan 2026

Ströer SE KGaA

Overview: Ströer SE & Co. KGaA specializes in out-of-home and digital out-of-home advertising services across Germany and internationally, with a market cap of approximately €1.92 billion.

Operations: The company's revenue is primarily derived from three segments: Daas & E-Commerce (€355.69 million), Out-Of-Home Media (€983.71 million), and Digital & Dialog Media (€869.35 million).

Estimated Discount To Fair Value: 42.3%

Ströer SE KGaA is trading at €34.3, significantly below its estimated future cash flow value of €59.44, suggesting potential undervaluation based on cash flows. Earnings are projected to grow robustly at 23.1% annually, outpacing the German market's growth rate despite recent earnings declines and high debt levels. The dividend yield of 6.71% lacks coverage by earnings, raising sustainability concerns amidst executive changes as Co-CEO Christian Schmalzl plans to step down in 2028 for personal reasons.

Our comprehensive growth report raises the possibility that Ströer SE KGaA is poised for substantial financial growth. Dive into the specifics of Ströer SE KGaA here with our thorough financial health report.XTRA:SAX Discounted Cash Flow as at Jan 2026

Where To Now?

Discover the full array of 223 Undervalued European Stocks Based On Cash Flows right here. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

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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 SWX:ALSN WSE:CBF and XTRA:SAX.

This article was originally published by Simply Wall St.

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