Bargain European Stocks with Serious Upside Potential
European stocks with REESE potential and KBV ratios undervalued less than 1,000
Here's a lowdown on ten buzz-worthy European stocks that are too good to be true, with their P/B ratios scrolling far below the 1.0 mark. Get ready to dig into these underdogs!
The Lowest of the Low P/B Ratio Hounds
The graph below showcases the shiznit-hot 10 stocks from the Stoxx Europe 600 index, boasting the dinkiest P/B ratios. FYI, this ratio gives you a gist of how much you have to fork out for a company's market value compared to the value of its tangible and intangible assets. If a company like Porsche SE were to head to the pawn shop and sell all its assets tomorrow, you'd snag five times the current stock value—obscenely undervalued, right? But remember, it ain't all about the ratio; stocks that have taken a pounding lately tend to rock this metric. So, always consider the chart, trend, dividend yield, and P/E ratio too.
And hey, these are the stocks you should keep your eye on:
Born-to-Monopolize European Stocks
Two of these stocks don't just offer a killer valuation; they've also got chart opportunities promising rollercoaster rides: Porsche Holding and Société Générale stock.
Porsche Holding is a champion in the ring with an extremely favorable valuation, flaunting a P/B ratio of 0.19 and a P/E ratio of a mere 2.8. Its dividend yield is a whopping 8.05%. The only downside? The stock has been in a downward spiral for years. But turnaround's sweet, and there's a fantastic opportunity on the horizon. Porsche SE stock has dipped below 40 euros before, and guess what? It roared back up by 100% and 200% in 2015 and 2020, making a flip worthy of a flipbook. Experts at BÖRSE ONLINE recommend you buy in at 61 euros.
French bank Société Générale is a chart-topper too, with a sizzling pattern since 2022. The stock's been tearing it up in an up-down channel between 20 euros and 28 euros. Now it's cruising back towards 28 euros. If it breaks out, it's headed for the stars. If it fizzles, it's time to run for the hills. But at the moment, it's well-priced with a P/B ratio of 0.32, a P/E ratio of 6.4, and a dividend yield of 4.85%. BÖRSE ONLINE suggests grabbing a stock at 35 euros.
Read More:
Additional Insights:
- A P/B ratio well below 1.0 typically indicates that a stock is trading for less than its book value, hinting at potential undervaluation compared to its net assets.
- The Stoxx Europe 600 index houses about 600 large, mid, and small-cap companies from 17 European countries, covering about 90% of free-float market capitalization in Europe.
- The STOXX Europe 600 index sits at around 546.91 as of June 16, 2025, close to its record high, which shows a relatively healthy market overall.
- Average P/E ratio for European stocks currently hovers around 16.60 – slightly above the historical average, hinting that the market might be fairly valued or overvalued.
- The finance sector in Europe offers intriguing opportunities, with stocks like Porsche Holding and Société Générale standing out due to their low P/B ratios and promising chart patterns.
- Porsche Holding, with a P/B ratio of 0.19, is an attractively priced stock that has shown impressive recovery potential in the past, making it a significant contender for finance investors.
