3 German Stocks Estimated To Be Trading Below Intrinsic Value By Up To 49.7%

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As tensions in the Middle East escalate, European markets have experienced increased caution, with Germany's DAX index recently declining by 1.81%. Amidst these uncertainties and potential interest rate adjustments by the European Central Bank, investors are keenly searching for opportunities that may be trading below their intrinsic value. Identifying undervalued stocks can offer a strategic advantage in such volatile times, as these equities might provide growth potential when market conditions stabilize.

Top 10 Undervalued Stocks Based On Cash Flows In Germany

Name

Current Price

Fair Value (Est)

Discount (Est)

technotrans (XTRA:TTR1)

€17.60

€31.22

43.6%

init innovation in traffic systems (XTRA:IXX)

€35.10

€52.10

32.6%

Formycon (XTRA:FYB)

€51.20

€81.68

37.3%

Gerresheimer (XTRA:GXI)

€80.95

€112.58

28.1%

Zalando (XTRA:ZAL)

€29.65

€58.98

49.7%

Schweizer Electronic (XTRA:SCE)

€3.84

€7.19

46.6%

Your Family Entertainment (DB:RTV)

€2.38

€4.35

45.3%

LPKF Laser & Electronics (XTRA:LPK)

€8.99

€12.44

27.7%

MTU Aero Engines (XTRA:MTX)

€286.00

€567.31

49.6%

Basler (XTRA:BSL)

€9.10

€12.73

28.5%

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

We're going to check out a few of the best picks from our screener tool.

SAP

Overview: SAP SE, along with its subsidiaries, offers applications, technology, and services globally and has a market cap of approximately €241.81 billion.

Operations: The company's revenue is primarily derived from its Applications, Technology & Services segment, which generated €32.54 billion.

Estimated Discount To Fair Value: 24.5%

SAP is trading significantly below its estimated fair value, presenting a potential opportunity for investors focused on cash flows. The company forecasts robust earnings growth of 37.9% annually, outpacing the German market. Recent AI innovations, including enhancements to their generative AI copilot Joule and new collaborative AI agents, signal SAP's commitment to leveraging technology for business transformation. However, large one-off items have impacted financial results, which investors should consider when evaluating the stock's valuation based on cash flows.

XTRA:SAP Discounted Cash Flow as at Oct 2024
XTRA:SAP Discounted Cash Flow as at Oct 2024

Verbio

Overview: Verbio SE is involved in the production and distribution of fuels and finished products across Germany, Europe, North America, and internationally, with a market cap of approximately €1.10 billion.