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3 Swedish Stocks Estimated To Be Up To 48.8% Below Intrinsic Value

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As European markets show resilience with the pan-European STOXX Europe 600 Index rising amid expectations of potential interest rate cuts, investors are keenly observing opportunities within individual countries like Sweden. In this context, identifying undervalued stocks becomes crucial as these equities may offer significant upside potential when market conditions align with intrinsic value estimates.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name

Current Price

Fair Value (Est)

Discount (Est)

CTT Systems (OM:CTT)

SEK263.00

SEK490.91

46.4%

Truecaller (OM:TRUE B)

SEK44.38

SEK86.61

48.8%

Concentric (OM:COIC)

SEK212.50

SEK404.43

47.5%

Biotage (OM:BIOT)

SEK183.00

SEK365.07

49.9%

Lindab International (OM:LIAB)

SEK272.60

SEK527.38

48.3%

Litium (OM:LITI)

SEK8.12

SEK16.22

49.9%

Wall to Wall Group (OM:WTW A)

SEK57.00

SEK105.68

46.1%

Dometic Group (OM:DOM)

SEK58.10

SEK107.69

46.1%

BHG Group (OM:BHG)

SEK14.16

SEK26.57

46.7%

Bactiguard Holding (OM:BACTI B)

SEK45.90

SEK86.07

46.7%

Click here to see the full list of 40 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

H & M Hennes & Mauritz

Overview: H & M Hennes & Mauritz AB (publ) operates globally, offering clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children with a market cap of approximately SEK276.45 billion.

Operations: The company generates revenue primarily from its apparel segment, which amounts to SEK234.94 billion.

Estimated Discount To Fair Value: 15.9%

H&M is trading at SEK171.75, below its estimated fair value of SEK204.33, suggesting it may be undervalued based on cash flows. Earnings are forecast to grow 17% annually, outpacing the Swedish market's 15.6%. However, recent earnings showed a decline in quarterly sales and net income compared to last year. The dividend yield of 3.78% isn't well covered by earnings, indicating potential sustainability concerns despite robust profit growth forecasts.

OM:HM B Discounted Cash Flow as at Oct 2024
OM:HM B Discounted Cash Flow as at Oct 2024

Truecaller

Overview: Truecaller AB (publ) develops and publishes mobile caller ID applications for individuals and businesses across India, the Middle East, Africa, and internationally, with a market cap of SEK15.24 billion.

Operations: The company's revenue primarily comes from its Communications Software segment, generating SEK1.72 billion.