Billerud And 2 Other Swedish Stocks Trading Below Intrinsic Value Estimates
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The Swedish stock market has shown resilience despite global economic fluctuations, with the pan-European STOXX Europe 600 Index reaching record highs amid slower inflation rates. As investors seek value in a fluctuating economy, identifying stocks trading below their intrinsic value becomes crucial. In this context, Billerud and two other Swedish stocks present compelling opportunities for investors looking to capitalize on undervalued assets.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Sleep Cycle (OM:SLEEP) | SEK41.90 | SEK80.17 | 47.7% |
| QleanAir (OM:QAIR) | SEK27.00 | SEK51.63 | 47.7% |
| Svedbergs Group (OM:SVED B) | SEK45.30 | SEK89.98 | 49.7% |
| Lindab International (OM:LIAB) | SEK267.00 | SEK524.39 | 49.1% |
| Dometic Group (OM:DOM) | SEK69.85 | SEK131.29 | 46.8% |
| Serstech (OM:SERT) | SEK1.34 | SEK2.63 | 49% |
| Candles Scandinavia (OM:CANDLE B) | SEK20.40 | SEK37.98 | 46.3% |
| Tourn International (OM:TOURN) | SEK8.98 | SEK16.47 | 45.5% |
| Svedbergs Group (OM:SVED BTA B) | SEK36.30 | SEK65.51 | 44.6% |
| MilDef Group (OM:MILDEF) | SEK82.20 | SEK161.07 | 49% |
Let's dive into some prime choices out of the screener.
Billerud
Overview: Billerud AB (publ) is a global provider of paper and packaging materials with a market cap of SEK26.84 billion.
Operations: Billerud generates revenue primarily from Region Europe (SEK27.08 billion), Region North America (SEK11.35 billion), and Solution & Other segments excluding currency hedging effects (SEK2.77 billion).
Estimated Discount To Fair Value: 30.4%
Billerud is trading at SEK 107.9, significantly below its estimated fair value of SEK 155.04, making it an undervalued stock based on discounted cash flows. The company's earnings are forecast to grow substantially at 31.74% per year, outpacing the Swedish market's growth rate of 15.3%. Recent Q2 results showed a net income turnaround to SEK 63 million from a loss of SEK 481 million a year ago, reinforcing its improving financial health.
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 SEK3.28 billion.
Operations: The company's revenue from Computer Hardware amounts to SEK1.11 billion.
Estimated Discount To Fair Value: 49%
MilDef Group is trading at SEK 82.2, well below its estimated fair value of SEK 161.07, indicating significant undervaluation based on discounted cash flows. The company's earnings are projected to grow at an impressive rate of 47% annually, far outpacing the Swedish market's growth rate of 15.3%. Recent orders worth SEK 72 million and SEK 18 million from NDMA and BAE Systems Bofors respectively bolster its revenue outlook for the coming years.