Each month, we screen the Europe-listed stocks under Morningstar’s coverage for newly overvalued names.
Over the past month, five stocks saw their Morningstar Ratings change to 2 stars, while another one climbed into 1-star territory. Stocks rated 3 stars are fairly valued according to Morningstar analysts, while those rated 4 or 5 stars are considered undervalued.
Overvalued European Stocks
The five new 2-star European stocks, ordered by market-cap, are:
The one new 1-star European stock is:
- Coca-Cola Hellenic Bottling Company CCH
All returns in this article are reported in the stock’s base currency and all data is sourced from Morningstar Direct.
Newly Overvalued Stocks as of April 15
The Morningstar Europe Index fell 6.50% over the past month, leaving the overall European stock market moderately undervalued, hovering at a 10% discount to its fair value estimate on a cap-weighted basis.
Of the 296 Europe-listed stocks covered by Morningstar analysts:
- 62% are undervalued, 26% are fairly valued, and 12% are overvalued.
- Five are newly overvalued.
- 59 are newly undervalued.
- One moved from a 2-star rating to a 1-star rating.
- Among the newly overvalued stocks, none jumped from a 3-star rating to a 1-star rating.
- 24 are no longer overvalued.
Morningstar analysts assign every stock under their coverage a fair value estimate, which is an intrinsic measure of the stock’s worth, and an Uncertainty Rating, which captures the range of potential outcomes for that estimate. A higher Uncertainty Rating equates to a larger range of prices considered fairly valued.
These two metrics and the stock’s current price, are used to determine its Morningstar Rating.
Distribution of Star Ratings for Europe-Listed Stocks
Source: Morningstar Direct. Data as of April 15, 2025.
Metrics for this Month’s New 2-Star Stocks
National Grid NG.
- Morningstar Rating: ★★
- One-Month Return: 9.14%
Regulated electric company National Grid has climbed 12.71% over the past three months and 18.92% over the past year. The stock is trading at a 9% premium to its fair value estimate of GBX 970, with an Uncertainty Rating of Low. National Grid is a large-value company with no economic moat.
Saab SAAB B
- Morningstar Rating: ★★
- One-Month Return: 11.76%
Aerospace and defense company Saab is up 91.84% over the past three months and 90.35% over the past year. The stock’s price is 20% above its fair value estimate of SEK 371, with an Uncertainty Rating of Medium. The large-growth stock has a wide economic moat.
KPN KPN
- Morningstar Rating: ★★
- One-Month Return: 7.25%
Telecom services firm KPN has gained 15.04% over the past three months and 24.75% over the past year. The large-core stock has a narrow economic moat. KPN is trading at an 18% premium to its fair value estimate of EUR 3.40, with an Uncertainty Rating of Medium.
Redeia Corporacion RED
- Morningstar Rating: ★★
- One-Month Return: 9.03%
Regulated electric company Redeia Corporacion is up 19.62% over the past three months and 28.59% over the past year. The stock’s price is 12% above its fair value estimate of EUR 17, with an Uncertainty Rating of Low. The mid-core stock has no economic moat.
Marks & Spencer MKS
- Morningstar Rating: ★★
- One-Month Return: 20.84%
Department store Marks & Spencer has climbed 19.84% over the past three months and 60.43% over the past year. The stock is trading at an 18% premium to its fair value estimate of GBX 342, with an Uncertainty Rating of Medium. Marks & Spencer is a mid-core company with no economic moat.
Metrics for this Month’s New 1-Star Stock
Coca-Cola Hellenic Bottling Company CCH
- Morningstar Rating: ★
- One-Month Return: 7.75%
Non-alcoholic beverages company Coca-Cola Hellenic Bottling Company is up 35.42% over the past three months and 56.85% over the past year. The stock’s price is 42% above its fair value estimate of GBX 2,590, with an Uncertainty Rating of Medium. The large-core stock has a narrow economic moat.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
