July 2024 Insights Into Three German Exchange Stocks Estimated Below Value

As global markets respond to recent economic data, Germany's DAX index has shown resilience, gaining 1.48% amidst a broader European uptick influenced by favorable inflation trends from the U.S. This environment sets an intriguing stage for investors to consider potential opportunities in undervalued stocks within the German market, where careful analysis could reveal hidden gems poised for recovery or growth under current conditions.

Top 10 Undervalued Stocks Based On Cash Flows In Germany

Name	Current Price	Fair Value (Est)	Discount (Est)
Stabilus (XTRA:STM)	€44.85	€80.27	44.1%
technotrans (XTRA:TTR1)	€17.85	€29.44	39.4%
PSI Software (XTRA:PSAN)	€22.50	€43.40	48.2%
Stratec (XTRA:SBS)	€44.50	€82.12	45.8%
SBF (DB:CY1K)	€2.94	€5.73	48.7%
CHAPTERS Group (XTRA:CHG)	€24.60	€46.71	47.3%
MTU Aero Engines (XTRA:MTX)	€250.30	€419.16	40.3%
R. STAHL (XTRA:RSL2)	€18.50	€29.19	36.6%
Rubean (DB:R1B)	€5.90	€10.83	45.5%
Your Family Entertainment (DB:RTV)	€2.56	€4.54	43.6%

Click here to see the full list of 28 stocks from our Undervalued German Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

adesso (XTRA:ADN1)

Overview: adesso SE operates as an IT services provider in Germany, Austria, Switzerland, and internationally, with a market capitalization of approximately €0.59 billion.

Operations: The company generates revenue primarily through two segments: IT Services (€1.31 billion) and IT Solutions (€119.88 million).

Estimated Discount To Fair Value: 12.5%

Adesso, currently priced at €90.8, is trading below its estimated fair value of €103.83, indicating potential undervaluation based on discounted cash flow analysis. Despite challenges in covering interest payments with earnings, adesso's revenue growth forecast at 11.8% annually outpaces the German market's 5.2%. Earnings are expected to surge by 37.96% yearly as the company approaches profitability within three years. However, its projected return on equity remains modest at 13.6%.

• The growth report we've compiled suggests that adesso's future prospects could be on the up.
• Dive into the specifics of adesso here with our thorough financial health report.

adidas (XTRA:ADS)

Overview: Adidas AG operates globally, designing, developing, producing, and marketing athletic and sports lifestyle products with a market capitalization of approximately €41.32 billion.

Operations: The company generates revenue from various regions, with €5.16 billion from North America, €3.20 billion from Greater China, and €2.31 billion from Latin America.

Estimated Discount To Fair Value: 32%

Adidas AG, with a current price of €231.4, is considered undervalued by 32%, as it trades below the estimated fair value of €340.36. The company's earnings are projected to grow at 41.3% annually over the next three years, significantly outpacing the German market forecast of 18.9%. Additionally, Adidas recently turned profitable with a reported net income of €170 million for Q1 2024 and has upgraded its operating profit guidance for the year to around €700 million, reflecting robust financial health and operational efficiency.

• Our comprehensive growth report raises the possibility that adidas is poised for substantial financial growth.
• Navigate through the intricacies of adidas with our comprehensive financial health report here.

MBB (XTRA:MBB)

Overview: MBB SE is a German-based company that focuses on acquiring and managing medium-sized businesses in the technology and engineering sectors, with a market capitalization of approximately €0.61 billion.

Operations: MBB SE generates revenue through three primary segments: Consumer Goods (€94.23 million), Technical Applications (€378.50 million), and Service & Infrastructure (€487.10 million).

Estimated Discount To Fair Value: 13.4%

MBB SE, priced at €107, is positioned below its estimated fair value of €123.58, suggesting undervaluation based on cash flows. Recent financials show a shift from a net loss to a profit with earnings rising to €5.77 million in Q1 2024 from a loss last year, indicating improving operational efficiency. Although MBB's revenue growth forecast at 7.3% annually is modest compared to the market, its earnings are expected to increase by 33.5% per year, outstripping the German market's average.

• According our earnings growth report, there's an indication that MBB might be ready to expand.
• Unlock comprehensive insights into our analysis of MBB stock in this financial health report.

Summing It All Up

• Unlock our comprehensive list of 28 Undervalued German Stocks Based On Cash Flows by clicking here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
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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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