Finding value in the Swedish stock market (Nasdaq Stockholm) requires looking beyond the surface of its world-class industrial giants. As of late 2025, while the OMXS30 index has shown resilience, several high-quality companies are trading at significant discounts to their intrinsic value due to temporary sector headwinds or macroeconomic shifts.
Here is a comprehensive look at undervalued Swedish stocks for 2025, categorized by their value drivers.
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| Here is a comprehensive look at undervalued Swedish stocks for 2025, categorized by their value drivers. |
1. The Industrial Value Gems (Deep Moats, Low Prices)
Sweden is famous for its "Wide Moat" companies—firms with competitive advantages that are difficult to replicate. Currently, some of these giants are trading below their historical valuation averages.
Elekta AB (EKTA B)
Elekta is a global leader in precision radiation medicine. Despite its critical role in oncology, the stock has faced pressure due to supply chain issues and hospital budget constraints.
The Value Play: Analysts estimate it is trading at a significant discount (up to 40%) compared to its fair value.
Key Metric: It offers a solid forward dividend yield of around 4.1%, making it an attractive "buy and hold" candidate while waiting for a price correction.
Sandvik AB (SAND)
A powerhouse in mining and rock excavation, Sandvik often fluctuates with the global industrial cycle.
The Value Play: While it has performed well, it remains undervalued relative to its long-term cash flow potential. As mining companies transition to autonomous and electric equipment, Sandvik is positioned to capture high-margin growth.
Status: Often highlighted by Morningstar as a "4-star" value opportunity when trading near the 290–300 SEK range.
2. High-Yield Value: The Financial Sector
The Swedish banking sector is known for its capital strength and high dividend payouts. In a stabilizing interest rate environment, these stocks offer "value" through massive cash returns.
Svenska Handelsbanken (SHB A)
Handelsbanken is often cited as one of the most stable banks in Europe.
The Value Play: It currently trades at a low Price-to-Book (P/B) ratio compared to its historical peers.
The "Income" Factor: It boasts a trailing dividend yield of over 11%, one of the highest on the Stockholm exchange. For value investors, this represents a "paid to wait" scenario.
Swedbank AB (SWED A)
Similar to Handelsbanken, Swedbank has recovered from past regulatory hurdles but still trades at a valuation that doesn't fully reflect its dominant market share in the Baltics and Sweden.
Key Metric: P/E ratios in the banking sector remain modest (often below 10x), providing a safety margin.
3. Tech and Growth Reversals
Some of Sweden's fast-growing tech companies have seen their valuations "compressed" over the last 18 months, leading to attractive entry points.
Truecaller AB (TRUE B)
The caller ID and communication platform has a massive user base in emerging markets like India but has seen its share price hit by broader tech sell-offs.
The Value Play: The stock is trading at a significant discount to its IPO price and historical highs. With double-digit earnings growth expected and a very low Price/Earnings (P/E) relative to its growth rate, it is a classic "GARP" (Growth at a Reasonable Price) play.
Embracer Group (EMBRAC B)
After a period of aggressive acquisitions and subsequent restructuring, the gaming giant is leaner.
The Value Play: Its current market cap often understates the value of its vast Intellectual Property (IP) portfolio (including The Lord of the Rings). Analysts see high upside as the company stabilizes its cash flow.
4. Summary of Undervalued Picks (2025 Data)
| Company | Ticker | Sector | Key Value Metric |
| Elekta | EKTA B | Healthcare | ~40% discount to Fair Value |
| Svenska Handelsbanken | SHB A | Finance | >11% Dividend Yield |
| Truecaller | TRUE B | Technology | Low P/E relative to 15% growth |
| Loomis | LOOMIS | Services | Strong cash flow, low EV/EBITDA |
| Skandinaviska Enskilda Banken | SEB A | Finance | High ROE with modest valuation |
Conclusion: Why Sweden?
Investing in the Swedish market offers exposure to highly transparent corporate governance and an export-oriented economy. The "Value" in Sweden right now is found in quality cyclicals and over-penalized growth stocks.
Note: Stock market investments carry risks. Valuations can change rapidly based on quarterly earnings reports and global interest rate shifts. Always perform your own due diligence before investing.