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As the pan-European STOXX Europe 600 Index experiences a modest rise amid hopes for quicker interest rate cuts by the European Central Bank, investors are closely watching Sweden's market for potential opportunities. In this environment, identifying stocks that might be trading below their estimated value can be a strategic approach, especially when considering factors such as company fundamentals and broader economic conditions.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Truecaller (OM:TRUE B) | SEK45.54 | SEK89.05 | 48.9% |
| Concentric (OM:COIC) | SEK213.50 | SEK404.69 | 47.2% |
| Lindab International (OM:LIAB) | SEK272.20 | SEK526.86 | 48.3% |
| Telefonaktiebolaget LM Ericsson (OM:ERIC B) | SEK88.36 | SEK174.84 | 49.5% |
| Wall to Wall Group (OM:WTW A) | SEK55.00 | SEK104.53 | 47.4% |
| Securitas (OM:SECU B) | SEK130.80 | SEK259.32 | 49.6% |
| TF Bank (OM:TFBANK) | SEK315.00 | SEK617.94 | 49% |
| OptiCept Technologies (OM:OPTI) | SEK7.13 | SEK13.68 | 47.9% |
| BHG Group (OM:BHG) | SEK13.91 | SEK26.37 | 47.2% |
| Bactiguard Holding (OM:BACTI B) | SEK46.50 | SEK86.31 | 46.1% |
Let's explore several standout options from the results in the screener.
Lime Technologies
Overview: Lime Technologies AB (publ) offers SaaS-based CRM solutions in the Nordic region and has a market cap of SEK4.44 billion.
Operations: The company's revenue primarily comes from selling and implementing CRM systems, totaling SEK631.84 million.
Estimated Discount To Fair Value: 28.5%
Lime Technologies, trading at SEK334.5, is undervalued with a discounted cash flow estimate of SEK467.51. Despite high debt levels, the stock trades 28.5% below its fair value estimate and offers strong potential for growth in earnings—forecasted to increase significantly by over 20% annually over the next three years. While revenue growth is slower at 14.2%, it still outpaces the Swedish market average of 1.2%.
Nyab
Overview: Nyab AB (publ) operates in Finland and Sweden, offering engineering, construction, and maintenance services for energy, infrastructure, and industrial projects across public and private sectors with a market cap of SEK4.07 billion.
Operations: The company's revenue segment for Heavy Construction is €308.95 million.
Estimated Discount To Fair Value: 44%
Nyab is trading at SEK5.73, significantly below its estimated fair value of SEK10.22, offering potential upside based on cash flow analysis. Despite a forecasted revenue growth rate of 11.2% per year, which surpasses the Swedish market average, profit margins have declined to 2.9% from 7.4% last year. However, earnings are expected to grow substantially by 28.1% annually over the next three years, outpacing the broader market's growth expectations of 15.3%.