3 Swedish Stocks That Could Be Trading Below Estimated Value

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As global markets respond to China's robust stimulus measures, European indices, including Sweden's, have shown positive momentum with hopes for interest rate cuts amid slowing business activity. In this context of shifting economic landscapes and monetary policies, identifying stocks that may be trading below their estimated value can offer intriguing opportunities for investors seeking potential growth in the Swedish market.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name

Current Price

Fair Value (Est)

Discount (Est)

Concentric (OM:COIC)

SEK218.00

SEK406.26

46.3%

Biotage (OM:BIOT)

SEK184.00

SEK363.47

49.4%

Lindab International (OM:LIAB)

SEK278.20

SEK528.19

47.3%

Nolato (OM:NOLA B)

SEK51.95

SEK98.81

47.4%

Litium (OM:LITI)

SEK8.18

SEK16.33

49.9%

Mentice (OM:MNTC)

SEK27.00

SEK50.98

47%

Tourn International (OM:TOURN)

SEK8.66

SEK16.48

47.5%

Nexam Chemical Holding (OM:NEXAM)

SEK4.00

SEK7.92

49.5%

MilDef Group (OM:MILDEF)

SEK84.70

SEK160.39

47.2%

Lyko Group (OM:LYKO A)

SEK116.60

SEK217.34

46.4%

Click here to see the full list of 46 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Absolent Air Care Group

Overview: Absolent Air Care Group AB (publ) designs, develops, sells, installs, and maintains air filtration units with a market cap of SEK3.75 billion.

Operations: The company generates revenue from its Industrial segment, which amounts to SEK1.14 billion, and its Commercial Kitchen segment, totaling SEK281.66 million.

Estimated Discount To Fair Value: 36.1%

Absolent Air Care Group appears undervalued, trading at 36.1% below its estimated fair value of SEK 517.99, with a current price around SEK 331. Despite recent CEO changes and slight declines in quarterly net income, the company shows strong fundamentals with a forecasted return on equity of 20.4% and earnings growth at an annual rate of 18.84%, outpacing the Swedish market's growth rate of 15.2%.

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

Humble Group

Overview: Humble Group AB (publ) refines, develops, and distributes fast-moving consumer products in Sweden and internationally, with a market cap of approximately SEK5.52 billion.

Operations: The company's revenue segments include Future Snacking at SEK950 million, Sustainable Care at SEK2.30 billion, Quality Nutrition at SEK1.53 billion, and Nordic Distribution at SEK2.67 billion.

Estimated Discount To Fair Value: 38.1%