3 Swedish Stocks Estimated To Be Trading Below Intrinsic Value In October 2024
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As the European Central Bank's recent interest rate cuts fuel expectations for further monetary easing, Sweden's stock market is experiencing a period of heightened investor interest. In this environment, identifying stocks that are trading below their intrinsic value can be particularly appealing to investors looking for opportunities amidst broader economic shifts.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Truecaller (OM:TRUE B) | SEK45.20 | SEK88.90 | 49.2% |
| Getinge (OM:GETI B) | SEK199.15 | SEK397.86 | 49.9% |
| Lindab International (OM:LIAB) | SEK268.20 | SEK525.69 | 49% |
| Telefonaktiebolaget LM Ericsson (OM:ERIC B) | SEK89.02 | SEK174.89 | 49.1% |
| TF Bank (OM:TFBANK) | SEK314.00 | SEK612.86 | 48.8% |
| Nolato (OM:NOLA B) | SEK52.80 | SEK102.66 | 48.6% |
| Wall to Wall Group (OM:WTW A) | SEK53.40 | SEK103.62 | 48.5% |
| Biotage (OM:BIOT) | SEK184.70 | SEK364.88 | 49.4% |
| Securitas (OM:SECU B) | SEK131.10 | SEK260.36 | 49.6% |
| BHG Group (OM:BHG) | SEK13.87 | SEK26.31 | 47.3% |
Let's take a closer look at a couple of our picks from the screened companies.
Absolent Air Care Group
Overview: Absolent Air Care Group AB (publ) specializes in designing, developing, selling, installing, and maintaining air filtration units with a market cap of SEK3.55 billion.
Operations: The company's revenue is primarily derived from its Industrial segment, which accounts for SEK1.14 billion, and its Commercial Kitchen segment, contributing SEK281.66 million.
Estimated Discount To Fair Value: 39.1%
Absolent Air Care Group is trading at SEK314, significantly below its estimated fair value of SEK515.62, highlighting potential undervaluation based on cash flows. With earnings forecasted to grow 18.8% annually, surpassing the Swedish market's 15.5%, and revenue growth projected at 10% per year, Absolent shows promising financial prospects despite recent executive changes with CEO Axel Berntsson's resignation effective by January 2025.
Biotage
Overview: Biotage AB (publ) offers solutions and products for drug discovery and development, analytical testing, and water and environmental testing, with a market cap of SEK14.79 billion.
Operations: The company's revenue primarily comes from its Healthcare Software segment, which generated SEK2.08 billion.
Estimated Discount To Fair Value: 49.4%
Biotage, trading at SEK184.7, is significantly undervalued with an estimated fair value of SEK364.88, presenting a strong case for being undervalued based on cash flows. Its earnings are projected to grow by 20.42% annually over the next three years, outpacing the Swedish market's average growth rate of 15.5%. Recent leadership changes include appointing Frederic Vanderhaegen as CEO, bringing extensive life science industry experience to guide Biotage's growth trajectory.