Top 3 Estimated Undervalued Stocks On The German Exchange For September 2024

As the European Central Bank's recent rate cuts aim to bolster economic growth, Germany's DAX has seen a notable rise of 2.17%, reflecting optimism in the market. In this environment, identifying undervalued stocks can provide investors with opportunities to capitalize on potential market inefficiencies and future growth prospects.

Top 10 Undervalued Stocks Based On Cash Flows In Germany

Name	Current Price	Fair Value (Est)	Discount (Est)
technotrans (XTRA:TTR1)	€16.20	€31.06	47.8%
init innovation in traffic systems (XTRA:IXX)	€36.70	€52.84	30.5%
Formycon (XTRA:FYB)	€49.40	€72.12	31.5%
Gerresheimer (XTRA:GXI)	€103.20	€196.76	47.5%
Verbio (XTRA:VBK)	€16.03	€30.25	47%
Schweizer Electronic (XTRA:SCE)	€3.76	€7.19	47.7%
MTU Aero Engines (XTRA:MTX)	€269.70	€491.55	45.1%
elumeo (XTRA:ELB)	€2.24	€3.90	42.6%
LPKF Laser & Electronics (XTRA:LPK)	€8.77	€12.50	29.9%
Basler (XTRA:BSL)	€9.44	€14.10	33.1%

Click here to see the full list of 19 stocks from our Undervalued German Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

adidas (XTRA:ADS)

Overview: adidas AG, with a market cap of €39.48 billion, designs, develops, produces, and markets athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region and Latin America.

Operations: The company's revenue segments are as follows: Greater China: €3.26 billion, Latin America: €2.39 billion, North America: €5.07 billion, and Segment Adjustment: €11.29 billion.

Estimated Discount To Fair Value: 19.9%

adidas, trading at €221.1, is 19.9% below its estimated fair value of €276.17 and has shown significant earnings growth, becoming profitable this year with a forecasted annual earnings growth of 41.82%. Recent Q2 results reported sales of €5.82 billion and net income of €190 million, up from €84 million the previous year. The company raised its full-year guidance due to better-than-expected performance despite unfavorable currency effects impacting profitability.

• Upon reviewing our latest growth report, adidas' projected financial performance appears quite optimistic.
• Take a closer look at adidas' balance sheet health here in our report.

Basler (XTRA:BSL)

Overview: Basler Aktiengesellschaft develops, manufactures, and sells digital cameras for professional users in Germany and internationally, with a market cap of €290.21 million.

Operations: The company generates €180.06 million in revenue from its Camera segment.

Estimated Discount To Fair Value: 33.1%

Basler, trading at €9.44, is 33.1% below its estimated fair value of €14.1 and is forecast to grow revenue by 14.6% per year, outpacing the German market's 5.4%. Despite expected profitability in the next three years, recent earnings for H1 2024 showed a net loss of €3.37 million on sales of €93.03 million, down from €116.08 million a year ago, indicating current financial challenges but potential undervaluation based on cash flows.

• Our growth report here indicates Basler may be poised for an improving outlook.
• Delve into the full analysis health report here for a deeper understanding of Basler.

SAP (XTRA:SAP)

Overview: SAP SE, along with its subsidiaries, offers applications, technology, and services globally with a market cap of €233.79 billion.

Operations: Revenue from applications, technology, and services amounts to €32.54 billion.

Estimated Discount To Fair Value: 17%

SAP (€200.65) trades 17% below its fair value estimate of €241.75, with earnings forecasted to grow 37.94% annually over the next three years, significantly outpacing the German market's 20%. Recent filings include a $60.93 million shelf registration and executive changes impacting technology and innovation leadership. Despite one-off items affecting financial results, SAP's high-quality earnings and strategic cloud partnerships position it for robust future cash flows and operational efficiency improvements.

• The growth report we've compiled suggests that SAP's future prospects could be on the up.
• Click here to discover the nuances of SAP with our detailed financial health report.

Next Steps

• Take a closer look at our Undervalued German Stocks Based On Cash Flows list of 19 companies by clicking here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

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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