Billerud And 2 Other Stocks On The Swedish Exchange That May Be Undervalued

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The Swedish stock market has been navigating a complex economic landscape, influenced by recent interest rate cuts and mixed signals from global markets. As investors seek opportunities amid these fluctuations, identifying undervalued stocks becomes crucial for capitalizing on potential growth. In this context, a good stock is one that demonstrates strong fundamentals and resilience in the face of economic uncertainty. With this in mind, let's explore Billerud and two other stocks on the Swedish exchange that may currently be undervalued.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name

Current Price

Fair Value (Est)

Discount (Est)

CTT Systems (OM:CTT)

SEK270.00

SEK491.56

45.1%

Concentric (OM:COIC)

SEK218.50

SEK406.65

46.3%

Husqvarna (OM:HUSQ B)

SEK69.28

SEK125.64

44.9%

Biotage (OM:BIOT)

SEK184.50

SEK364.26

49.3%

Lindab International (OM:LIAB)

SEK280.60

SEK529.24

47%

Nolato (OM:NOLA B)

SEK52.35

SEK98.72

47%

Mentice (OM:MNTC)

SEK27.30

SEK50.92

46.4%

Nexam Chemical Holding (OM:NEXAM)

SEK4.29

SEK7.93

45.9%

MilDef Group (OM:MILDEF)

SEK83.30

SEK160.15

48%

Lyko Group (OM:LYKO A)

SEK115.80

SEK215.47

46.3%

Click here to see the full list of 44 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Billerud

Overview: Billerud AB (publ) is a global provider of paper and packaging materials with a market cap of SEK28.38 billion.

Operations: Billerud generates revenue from three primary segments: SEK27.08 billion from Region Europe, SEK11.35 billion from Region North America, and SEK2.77 billion from Solutions & Other (excluding currency hedging).

Estimated Discount To Fair Value: 34.4%

Billerud is trading at SEK 114.1, significantly below its estimated fair value of SEK 173.91, indicating it may be undervalued based on cash flows. Despite a low forecasted Return on Equity of 8.6% in three years, the company's earnings are projected to grow significantly at 31.4% per year, outpacing the Swedish market's growth rate of 15.1%. Recent leadership changes and improved net income from SEK -481 million to SEK 63 million bolster its potential for future performance.

OM:BILL Discounted Cash Flow as at Oct 2024
OM:BILL Discounted Cash Flow as at Oct 2024

MilDef Group

Overview: MilDef Group AB (publ) develops, manufactures, and sells rugged IT solutions and special electronics primarily for the security and defense sectors, with a market cap of SEK3.32 billion.

Operations: MilDef Group AB (publ) generates revenue of SEK1.11 billion from its Computer Hardware segment.