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As global markets exhibit varied performances with some regions showing signs of economic resilience and others grappling with challenges, the Swedish stock market presents unique opportunities for investors seeking value. In this context, understanding the characteristics that define potentially undervalued stocks can be crucial, especially in a market environment where strategic investment decisions are paramount.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
Name | Current Price | Fair Value (Est) | Discount (Est) |
Björn Borg (OM:BORG) | SEK54.60 | SEK102.17 | 46.6% |
Boule Diagnostics (OM:BOUL) | SEK10.45 | SEK20.90 | 50% |
Arcoma (OM:ARCOMA) | SEK17.95 | SEK35.78 | 49.8% |
Biotage (OM:BIOT) | SEK156.90 | SEK297.61 | 47.3% |
Alleima (OM:ALLEI) | SEK69.10 | SEK127.81 | 45.9% |
Nordic Waterproofing Holding (OM:NWG) | SEK162.00 | SEK298.24 | 45.7% |
Nolato (OM:NOLA B) | SEK57.55 | SEK111.71 | 48.5% |
MilDef Group (OM:MILDEF) | SEK66.90 | SEK131.89 | 49.3% |
Humble Group (OM:HUMBLE) | SEK10.28 | SEK19.55 | 47.4% |
Hexatronic Group (OM:HTRO) | SEK50.02 | SEK98.82 | 49.4% |
Here's a peek at a few of the choices from the screener
H & M Hennes & Mauritz
Overview: H & M Hennes & Mauritz AB operates globally, offering apparel, accessories, footwear, cosmetics, and home products for women, men, and children with a market cap of approximately SEK 313.49 billion.
Operations: The company generates SEK 234.83 billion from its apparel segment.
Estimated Discount To Fair Value: 35.1%
H & M Hennes & Mauritz, trading at SEK 194.65, appears undervalued based on a discounted cash flow model with an estimated fair value of SEK 300.15. Despite this, its dividend sustainability is questioned as the current yield of 3.34% is poorly covered by earnings. The company's earnings have surged by over 100% in the past year and are expected to grow annually by 16.86%, outpacing the Swedish market forecast of 13.9%. However, revenue growth projections are modest at 3.4% per year.
Lime Technologies
Overview: Lime Technologies AB specializes in providing SaaS-based CRM solutions primarily in the Nordic region, with a market capitalization of approximately SEK 4.67 billion.
Operations: The company generates revenue primarily through the sale and implementation of software for CRM systems, amounting to SEK 601.83 million.