Basler And Two More German Stocks That May Be Priced Below Their Estimated Value

Amid a backdrop of economic uncertainty and fluctuating indices, the German market has seen its share of volatility, with the DAX declining by 3.20% recently. Despite these challenges, opportunities to find undervalued stocks still exist for discerning investors. Identifying stocks that are priced below their estimated value often involves looking at fundamental metrics such as earnings potential and market position—factors that can offer resilience in uncertain times.

Top 10 Undervalued Stocks Based On Cash Flows In Germany

Name	Current Price	Fair Value (Est)	Discount (Est)
technotrans (XTRA:TTR1)	€16.50	€31.34	47.4%
MBB (XTRA:MBB)	€100.40	€196.22	48.8%
Gerresheimer (XTRA:GXI)	€105.30	€202.57	48%
ecotel communication ag (XTRA:E4C)	€12.35	€21.95	43.7%
Verbio (XTRA:VBK)	€15.92	€30.46	47.7%
Schweizer Electronic (XTRA:SCE)	€4.10	€7.42	44.7%
MTU Aero Engines (XTRA:MTX)	€270.30	€498.05	45.7%
elumeo (XTRA:ELB)	€2.18	€3.92	44.4%
LPKF Laser & Electronics (XTRA:LPK)	€8.13	€12.53	35.1%
Basler (XTRA:BSL)	€8.80	€14.05	37.4%

Click here to see the full list of 22 stocks from our Undervalued German Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Basler (XTRA:BSL)

Overview: Basler Aktiengesellschaft develops, manufactures, and sells digital cameras for professional users in Germany and internationally, with a market cap of €270.54 million.

Operations: The company's revenue primarily comes from its Camera segment, which generated €180.06 million.

Estimated Discount To Fair Value: 37.4%

Basler Aktiengesellschaft, trading at €8.8, is significantly undervalued based on discounted cash flow analysis with a fair value estimate of €14.05. Despite recent earnings showing a net loss of €3.37 million for H1 2024 and declining sales to €93.03 million, the company is expected to become profitable within three years and has forecasted revenue growth of 14.6% per year, outpacing the German market's average growth rate of 5.4%.

• The growth report we've compiled suggests that Basler's future prospects could be on the up.
• Get an in-depth perspective on Basler's balance sheet by reading our health report here.

MTU Aero Engines (XTRA:MTX)

Overview: MTU Aero Engines AG, with a market cap of €14.55 billion, develops, manufactures, markets, and maintains commercial and military aircraft engines as well as aero-derivative industrial gas turbines globally.

Operations: MTU Aero Engines generates revenue primarily from its Commercial Maintenance Business (MRO) at €4.45 billion and its Commercial and Military Engine Business (OEM) at €1.32 billion.

Estimated Discount To Fair Value: 45.7%

MTU Aero Engines is trading at €270.3, significantly below its estimated fair value of €498.05, suggesting it is undervalued based on cash flows. Recent earnings for H1 2024 show sales increased to €3.39 billion from €3.09 billion a year ago, with net income rising to €285 million from €255 million. The company is forecasted to achieve annual profit growth above market averages and expects revenue growth of 12.1% per year over the next three years.

• Our comprehensive growth report raises the possibility that MTU Aero Engines is poised for substantial financial growth.
• Click here to discover the nuances of MTU Aero Engines with our detailed financial health report.

Deutsche Pfandbriefbank (XTRA:PBB)

Overview: Deutsche Pfandbriefbank AG operates in commercial real estate and public investment finance across Europe and the United States, with a market cap of €749.70 million.

Operations: The company's revenue segments include Real Estate Finance (REF) generating €223 million and Non-Core (NC) contributing €103 million.

Estimated Discount To Fair Value: 19.7%

Deutsche Pfandbriefbank is trading at €5.58, below its estimated fair value of €6.94, indicating it may be undervalued based on cash flows. Recent H1 2024 earnings show net income dropped to €40 million from €69 million a year ago, with basic EPS falling to €0.2 from €0.44. Despite lower profit margins and high bad loans (4.1%), the company’s earnings are forecasted to grow significantly at 40.2% per year, outpacing the German market's growth rate of 19.8%.

• Our expertly prepared growth report on Deutsche Pfandbriefbank implies its future financial outlook may be stronger than recent results.
• Dive into the specifics of Deutsche Pfandbriefbank here with our thorough financial health report.

Summing It All Up

• Embark on your investment journey to our 22 Undervalued German Stocks Based On Cash Flows selection here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Interested In Other Possibilities?

• 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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