Despite the macro headwinds facing Europe — including slower GDP growth, structural scepticism from global investors and competitive pressure from U.S. equities — pockets of value are emerging on the German exchange. Here we explore three fundamentally strong companies trading at significant discounts to their fair prices based on Bulios metrics, with robust cash flows and resilient business models that the broader market has yet to fully appreciate. This article navigates the structural reasons behind their valuation gaps and what long-term investors should consider when assessing European opportunities in an era defined by global economic divergence. 

The situation in Europe

European equity markets, and the German one in particular, are going through a prolonged period of structural scepticism on the part of investors. While US indices have benefited from the dominance of the tech giants in recent years, Europe has remained under pressure by a combination of weaker economic growth,…