3 German Stocks Estimated To Be Undervalued In August 2024
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As the European economy shows signs of optimism with the pan-European STOXX Europe 600 Index and Germany’s DAX both rising in August 2024, investors are increasingly looking for opportunities within this buoyant market environment. With interest rate cuts anticipated from both the Federal Reserve and the European Central Bank, identifying undervalued stocks becomes crucial as these conditions could potentially enhance their value. In such a climate, a good stock is typically characterized by strong fundamentals, solid earnings potential, and resilience to economic fluctuations—factors that can help it capitalize on favorable market trends.
Top 10 Undervalued Stocks Based On Cash Flows In Germany
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Bertrandt (XTRA:BDT) | €24.60 | €42.32 | 41.9% |
| technotrans (XTRA:TTR1) | €17.20 | €30.22 | 43.1% |
| MBB (XTRA:MBB) | €105.00 | €195.28 | 46.2% |
| M1 Kliniken (XTRA:M12) | €14.15 | €23.69 | 40.3% |
| Friedrich Vorwerk Group (XTRA:VH2) | €21.85 | €36.70 | 40.5% |
| RENK Group (DB:R3NK) | €24.975 | €43.17 | 42.1% |
| Schweizer Electronic (XTRA:SCE) | €4.50 | €7.64 | 41.1% |
| MTU Aero Engines (XTRA:MTX) | €267.50 | €491.50 | 45.6% |
| Dr. H?nle (XTRA:HNL) | €15.70 | €28.40 | 44.7% |
| elumeo (XTRA:ELB) | €2.32 | €3.93 | 41% |
We'll examine a selection from our screener results.
Bertrandt
Overview: Bertrandt Aktiengesellschaft offers engineering services and has a market cap of €248.60 million.
Operations: The company's revenue segments include Digital Engineering (€640.06 million), Physical Engineering (€253.89 million), and Electrical Systems/Electronics (€409.76 million).
Estimated Discount To Fair Value: 41.9%
Bertrandt Aktiengesellschaft is trading at €24.6, significantly below its estimated fair value of €42.32, indicating potential undervaluation based on discounted cash flows. Despite a low forecasted Return on Equity (10.6%) and slower revenue growth (5.3% per year), the company's earnings are expected to grow significantly at 60.1% annually, outpacing the German market's 19.8%. Recent earnings reports show increased sales but a net loss for Q3 and reduced net income over nine months compared to last year.
Basler
Overview: Basler Aktiengesellschaft develops, manufactures, and sells digital cameras for professional users in Germany and internationally, with a market cap of €308.66 million.