Swedish Stocks Priced Below Estimated Value For October 2024

As the European Central Bank's recent interest rate cuts have sparked expectations for further monetary easing, major stock indexes in Europe, including Sweden, have experienced gains. In this context of shifting economic policies and market conditions, identifying undervalued stocks becomes crucial for investors seeking opportunities that may offer potential growth or stability.

Top 10 Undervalued Stocks Based On Cash Flows In Sweden

Name	Current Price	Fair Value (Est)	Discount (Est)
CTT Systems (OM:CTT)	SEK249.00	SEK493.15	49.5%
Svedbergs Group (OM:SVED B)	SEK41.75	SEK77.51	46.1%
Lindab International (OM:LIAB)	SEK264.40	SEK527.01	49.8%
Truecaller (OM:TRUE B)	SEK46.50	SEK89.95	48.3%
Nolato (OM:NOLA B)	SEK52.70	SEK102.67	48.7%
Wall to Wall Group (OM:WTW A)	SEK54.00	SEK104.81	48.5%
TF Bank (OM:TFBANK)	SEK319.00	SEK612.51	47.9%
Securitas (OM:SECU B)	SEK130.35	SEK260.50	50%
BHG Group (OM:BHG)	SEK14.74	SEK26.96	45.3%
Bactiguard Holding (OM:BACTI B)	SEK44.30	SEK85.53	48.2%

Click here to see the full list of 46 stocks from our Undervalued Swedish Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

CTT Systems (OM:CTT)

Overview: CTT Systems AB (publ) designs, manufactures, and sells humidity control systems for aircraft in Sweden, Denmark, France, the United States, and internationally with a market cap of SEK3.12 billion.

Operations: The company's revenue primarily comes from the Aerospace & Defense segment, generating SEK317.70 million.

Estimated Discount To Fair Value: 49.5%

CTT Systems is trading at SEK249, significantly undervalued compared to its estimated fair value of SEK493.15. With earnings projected to grow 24.8% annually, outpacing the Swedish market's 15.6%, and revenue expected to rise by 21.9% per year, CTT demonstrates strong growth potential. However, it has an unstable dividend track record despite a very high forecasted return on equity of 44.4% in three years and recent inclusion in the S&P Global BMI Index.

• The growth report we've compiled suggests that CTT Systems' future prospects could be on the up.
• Take a closer look at CTT Systems' balance sheet health here in our report.

Telefonaktiebolaget LM Ericsson (OM:ERIC B)

Overview: Telefonaktiebolaget LM Ericsson (publ) offers mobile connectivity solutions for telecom operators and enterprise customers across multiple regions including North America, Europe, Latin America, the Middle East, Africa, North East Asia, South East Asia, Oceania and India with a market cap of approximately SEK297.84 billion.

Operations: Ericsson's revenue segments include Networks at SEK156.41 billion, Cloud Software and Services at SEK62.74 billion, and Enterprise at SEK25.47 billion.

Estimated Discount To Fair Value: 35.1%

Telefonaktiebolaget LM Ericsson, trading at SEK89.4, appears undervalued with an estimated fair value of SEK137.75. Despite a recent decline in sales, the company turned a net income profit in Q3 2024 from a significant loss last year. Its strategic cloud-native billing platform migration and partnerships for 5G expansion reflect operational efficiency improvements and potential growth avenues, although its dividend yield remains unsustainable given current earnings coverage.

• According our earnings growth report, there's an indication that Telefonaktiebolaget LM Ericsson might be ready to expand.
• Click here and access our complete balance sheet health report to understand the dynamics of Telefonaktiebolaget LM Ericsson.

Paradox Interactive (OM:PDX)

Overview: Paradox Interactive AB (publ) develops and publishes strategy and management games for PC and consoles across various global regions, with a market cap of SEK21.12 billion.

Operations: The company's revenue segment includes Computer Graphics, generating SEK2.48 billion.

Estimated Discount To Fair Value: 21.2%

Paradox Interactive, currently trading at SEK200, is undervalued with a fair value estimate of SEK253.8. Despite recent revenue declines, the company's earnings are forecast to grow significantly faster than the Swedish market. Product expansions like Stellaris' Grand Archive and Cosmic Storms could bolster future cash flows. However, its profit margins have decreased from last year’s levels, which may affect short-term financial performance despite long-term growth prospects supported by high expected annual profit growth and strong return on equity forecasts.

• The analysis detailed in our Paradox Interactive growth report hints at robust future financial performance.
• Click here to discover the nuances of Paradox Interactive with our detailed financial health report.

Where To Now?

• Discover the full array of 46 Undervalued Swedish Stocks Based On Cash Flows right here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
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Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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