Exploring Value Opportunities On SIX Swiss Exchange With 3 Stocks Estimated To Be Trading At Discounts Between 28.9% And 44.3%
The Switzerland stock market recently experienced a downturn, reflecting broader European trends driven by concerns over global economic growth and disappointing earnings reports from key players in the US and Europe. With the benchmark SMI index showing a decline, this environment may present opportunities to identify stocks that are potentially undervalued, offering attractive prospects for investors attentive to valuation metrics in challenging times.
Top 10 Undervalued Stocks Based On Cash Flows In Switzerland
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Sulzer (SWX:SUN) | CHF132.40 | CHF220.91 | 40.1% |
| COLTENE Holding (SWX:CLTN) | CHF45.60 | CHF74.04 | 38.4% |
| Burckhardt Compression Holding (SWX:BCHN) | CHF610.00 | CHF857.01 | 28.8% |
| Georg Fischer (SWX:GF) | CHF65.00 | CHF100.24 | 35.2% |
| Julius Bär Gruppe (SWX:BAER) | CHF51.96 | CHF93.29 | 44.3% |
| Sonova Holding (SWX:SOON) | CHF264.80 | CHF468.39 | 43.5% |
| Temenos (SWX:TEMN) | CHF61.00 | CHF94.98 | 35.8% |
| SGS (SWX:SGSN) | CHF92.10 | CHF129.51 | 28.9% |
| Comet Holding (SWX:COTN) | CHF349.00 | CHF590.65 | 40.9% |
| Medartis Holding (SWX:MED) | CHF73.80 | CHF131.71 | 44% |
Here we highlight a subset of our preferred stocks from the screener.
Julius Bär Gruppe
Overview: Julius Bär Gruppe AG is a global wealth management firm operating in Switzerland, Europe, the Americas, and Asia, with a market capitalization of CHF 10.64 billion.
Operations: The firm generates CHF 3.24 billion from its private banking segment.
Estimated Discount To Fair Value: 44.3%
Julius Bär Gruppe, priced at CHF51.96, appears undervalued based on a discounted cash flow (DCF) valuation indicating a fair value of CHF93.29. Despite slower expected revenue growth at 9.4% annually compared to the market's 20%, its earnings are projected to increase significantly by 21.6% per year, outpacing the Swiss market's 8.3%. However, current profit margins have decreased from last year’s 24.6% to 14%, and its dividend coverage is uncertain, reflecting potential financial management challenges under new leadership initiatives and strategic expansions in Asia.
SGS
Overview: SGS SA is a global company headquartered in Switzerland, offering inspection, testing, and verification services across various regions including Europe, Africa, the Middle East, the Americas, and Asia Pacific, with a market capitalization of CHF 17.43 billion.