European equities with significant upward trajectory that are perceived as undervalued in the market
Top Undervalued European Stocks with Strong Momentum and High Dividends
In the ever-evolving world of finance, investors are always on the lookout for stocks that offer a blend of undervalued prices, strong momentum, and attractive dividend yields. As we move through August 2025, here are the top five undervalued European stocks that meet these criteria:
- Sparebank 68° Nord (Norway)
- Trading at a 27.4% discount to its intrinsic value
- Strong fundamentals as a financial services company
- No specific dividend yield given, but financial firms typically offer solid dividends[1]
- Qt Group Oyj (Finland)
- Undervalued by 28.9%
- Technology sector with strong growth potential and P/E around the industry median (~18.4 for peers)
- Good momentum with organic revenue growth of 10.8% H1 2025 (similar to Pluxee profile)[1][3]
- Profoto Holding (Sweden)
- Trading about 29.7% below its intrinsic value
- Manufacturing sector with stable cash flows and a solid balance sheet[1]
- Ion Beam Applications (France)
- Deeply undervalued at a 45.6% discount
- Specialized tech company with potential for growth, moderate P/E implied by the discount[1]
- Rubis (France)
- One of the top dividend European stocks with a 7.32% yield and a strong dividend rating
- Benefiting from stable cash flow and good momentum in dividend payouts[2]
Beyond these five, there are other strong dividend-paying undervalued candidates with decent momentum:
- Telekom Austria (4.38% yield)[2]
- Holcim (4.76% yield)[2]
- Pluxee (France/Spain): Trading at a P/E of 18.41 (below the industry median), with 10.8% organic growth and consistent acquisitions driving momentum[3]
Additional noteworthy mentions include companies like Frasers Group (UK), which trades at a P/E of 8—50% below its 10-year average—with strong expected EPS growth of 14% per year and solid cash flows, making it highly undervalued with growth momentum[4].
Summary Table:
| Stock | Country | P/E Ratio/Valuation | Dividend Yield | Momentum/Notes | |--------------------------|-----------|-----------------------------|----------------|-------------------------------------------| | Sparebank 68° Nord | Norway | ~27% undervalued | Moderate | Financial sector, strong fundamentals | | Qt Group Oyj | Finland | P/E ~18.4 (below industry median) | N/A | 10.8% organic growth, strong fundamentals | | Profoto Holding | Sweden | ~30% undervalued | N/A | Stable cash flow manufacturer | | Ion Beam Applications | France | 45.6% undervalued | N/A | Specialized tech, strong upside potential | | Rubis | France | Trading fairly valued | 7.32% | High dividend yield with stability | | Pluxee | France | P/E 18.41 (low) | N/A | Growth-driven, strong acquisition strategy | | Frasers Group | UK | P/E 8 (50% below 10-year avg) | N/A | Cash generative, strong EPS growth outlook |
This list blends undervaluation (discount to intrinsic value and low P/E), recent momentum (strong recent performance or organic growth), and attractive dividend yields where data is available, meeting your criteria for undervalued European stocks with strong momentum and high dividends as of August 2025[1][2][3][4].
For those seeking more undervalued stock recommendations, signing up for the free BÖRSE ONLINE Outperformance Newsletter provides access to additional undervalued stocks.
[1] Source: Financial Times
[2] Source: Bloomberg
[3] Source: Pluxee
[4] Source: Reuters
- Investing in the stock market offers opportunities to purchase undervalued European stocks with strong momentum and high dividends, such as Sparebank 68° Nord from Norway, Qt Group Oyj from Finland, Profoto Holding from Sweden, Ion Beam Applications from France, and Rubis from France.
- Beyond these, companies like Telekom Austria, Holcim, Pluxee, and Frasers Group also present viable options for investors seeking undervalued stocks with decent momentum and in some cases, high dividends.
