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Estimated Discount To Fair Value: 41.6%

Dätwyler Holding is trading at CHF120.4, significantly below its estimated fair value of CHF206.2, highlighting its potential as an undervalued stock based on cash flows. Despite a high debt level and recent profit margin contraction from 5.8% to 2.8%, the company anticipates robust earnings growth of 34.1% annually over the next three years, outpacing the Swiss market's forecasted growth rate of 11%. However, dividend coverage remains inadequate due to large one-off items impacting results.

• Our expertly prepared growth report on Dätwyler Holding implies its future financial outlook may be stronger than recent results.

• Get an in-depth perspective on Dätwyler Holding's balance sheet by reading our health report here.

Carl Zeiss Meditec

Overview: Carl Zeiss Meditec AG is a medical technology company operating in Germany, the rest of Europe, North America, and Asia with a market cap of approximately €5.36 billion.

Operations: The company's revenue is primarily derived from two segments: Ophthalmic Devices, including Surgical Ophthalmology, which generates approximately €1.70 billion, and Microsurgery, contributing around €472.67 million.

Estimated Discount To Fair Value: 39.7%

Carl Zeiss Meditec is trading at €61.2, well below its estimated fair value of €101.57, indicating potential undervaluation based on cash flows. Recent earnings show a slight decline in net income despite increased sales, with profit margins falling from 12.7% to 7.2%. While revenue growth is forecast at 6.9% annually, slower than desired for high-growth stocks, earnings are expected to grow significantly faster than the German market's average rate.

• The analysis detailed in our Carl Zeiss Meditec growth report hints at robust future financial performance.

• Dive into the specifics of Carl Zeiss Meditec here with our thorough financial health report.

Where To Now?

• Delve into our full catalog of 175 Undervalued European Stocks Based On Cash Flows here.

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Seeking Other Investments?

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• 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.

Companies discussed in this article include BME:OHLA SWX:DAE and XTRA:AFX.

This article was originally published by Simply Wall St.

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