MedCap AB stock: Remarkably undervalued

MedCap shares have recently recovered slightly, but the overall picture remains bleak for the month. After a decline of almost 11% over the past four weeks, the stock rose by around 1.4% yesterday to €50.10. Investors are now asking themselves: Has the correction ended, or is an attractive valuation window opening up?

Fundamental data in focus

Despite the recent share price decline, the current valuation is sending remarkable signals. With a price-to-sales ratio (PSR) of just 0.42, MedCap is trading at a level typically associated with undervaluation. For comparison, the PSR was 4.92 in 2024 – a significant decrease that points not only to lower share prices but also to solid trading volumes.

The price-to-cash-flow ratio (P/CF) is even more striking: at its current level of 2.09, the stock is trading well below the average of comparable industry stocks. This metric indicates robust operating profitability, which has so far been barely reflected in the share price.

• Current exchange rate: EUR 50.10 (as of November 10, 2025)
• Price-to-sales ratio: 0.42 (previous year: 4.92)
• KCV: 2.09
• Market capitalization: EUR 752.2 million

Stock price under pressure – but why?

The decline of almost 11% in recent weeks is likely primarily attributable to a general reluctance in the healthcare and medtech sectors. After a long period of solid gains, many stocks in this industry consolidated. The fact that MedCap – a private equity firm focused on small and medium-sized healthcare companies – suffered a greater loss may be related to lower trading volumes and reduced liquidity in the small-cap segment.

However, the relationship between the share price and company earnings is particularly interesting. Based on the most recent annual net income of €207.4 million, the price-to-earnings ratio (P/E ratio) is only 3.63 – a figure that suggests a potentially favorable valuation. This stands in stark contrast to the previous year's figure of 40.32 and suggests that the market is currently underestimating the company's operational strength.

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Should investors sell immediately? Or is it still worth investing in MedCap AB ?

Outlook: An opportunity for long-term investors?

With a distance of over 39% from its 52-week low, the stock has indeed moved noticeably away from its yearly low, but is still trading around 20% below its high. This suggests a situation oscillating between uncertainty and potential revaluation. Should the industry-specific market environment stabilize, the stock could regain momentum from its current valuation level.

It's still too early to speak of a clear trend reversal – but the favorable indicators are noteworthy. Investors are likely to closely monitor the coming weeks to see if a sustainable bottom is forming.

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