In This Article:
As of July 2024, the Swedish stock market is showing signs of resilience amidst a complex global economic landscape marked by heightened political uncertainties in Europe and fluctuating bond yields. Investors seeking value might find opportunities in stocks that are currently estimated to be trading below their intrinsic values, particularly in an environment where cautious investment strategies could prevail due to the broader market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In Sweden
Name | Current Price | Fair Value (Est) | Discount (Est) |
Björn Borg (OM:BORG) | SEK56.80 | SEK105.94 | 46.4% |
Paradox Interactive (OM:PDX) | SEK143.40 | SEK252.97 | 43.3% |
Biotage (OM:BIOT) | SEK158.80 | SEK314.53 | 49.5% |
Nordic Waterproofing Holding (OM:NWG) | SEK160.00 | SEK305.52 | 47.6% |
Lindab International (OM:LIAB) | SEK226.80 | SEK422.23 | 46.3% |
RaySearch Laboratories (OM:RAY B) | SEK137.00 | SEK280.55 | 51.2% |
Flexion Mobile (OM:FLEXM) | SEK8.34 | SEK15.87 | 47.4% |
Stille (OM:STIL) | SEK208.00 | SEK391.21 | 46.8% |
Image Systems (OM:IS) | SEK1.465 | SEK2.81 | 47.9% |
Nordisk Bergteknik (OM:NORB B) | SEK17.12 | SEK31.82 | 46.2% |
Let's dive into some prime choices out of from the screener
AcadeMedia
Overview: AcadeMedia AB (publ) is an independent education provider operating in Sweden, Norway, the Netherlands, and Germany, with a market capitalization of SEK 5.39 billion.
Operations: AcadeMedia's revenue is primarily derived from its operations in upper secondary schools (SEK 6.20 billion), preschool and international education (SEK 6.07 billion), compulsory schooling (SEK 4.25 billion), and adult education (SEK 1.79 billion).
Estimated Discount To Fair Value: 26.8%
AcadeMedia, with its current share price of SEK 52.8, is trading significantly below our fair value estimate of SEK 72.4, indicating a potential undervaluation based on discounted cash flow analysis. Despite an unstable dividend track record, the company has shown robust growth with earnings up by 9.9% over the past year and forecasted to grow at an impressive rate of 23.33% annually. Recent financial results reflect strong performance with a notable increase in sales and net income for both the quarter and nine-month period ending March 2024, supporting its growth trajectory albeit slower expected revenue growth compared to some market benchmarks.
CellaVision
Overview: CellaVision AB, based in Sweden, specializes in developing and selling instruments, software, and reagents for the analysis of blood and body fluids globally, with a market capitalization of approximately SEK 5.89 billion.