Exploring Undervalued Stocks On The German Exchange With Discounts Ranging From 11.9% To 34%
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Amidst a generally positive week for European markets, with Germany's DAX index climbing by 1.48%, investors are keenly observing opportunities within this buoyant environment. In such a market, identifying undervalued stocks can be particularly compelling, as they may offer significant potential for appreciation when they converge with the broader market valuation.
Top 10 Undervalued Stocks Based On Cash Flows In Germany
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Stabilus (XTRA:STM) | €44.45 | €80.07 | 44.5% |
| technotrans (XTRA:TTR1) | €18.20 | €29.52 | 38.3% |
| PSI Software (XTRA:PSAN) | €22.90 | €43.44 | 47.3% |
| Stratec (XTRA:SBS) | €45.20 | €82.26 | 45.1% |
| Wolftank-Adisa Holding (XTRA:WAH) | €11.40 | €22.46 | 49.2% |
| SBF (DB:CY1K) | €2.96 | €5.73 | 48.3% |
| CHAPTERS Group (XTRA:CHG) | €24.60 | €46.71 | 47.3% |
| MTU Aero Engines (XTRA:MTX) | €251.60 | €419.25 | 40% |
| Rubean (DB:R1B) | €5.90 | €10.83 | 45.5% |
| Your Family Entertainment (DB:RTV) | €2.56 | €4.54 | 43.6% |
We're going to check out a few of the best picks from our screener tool.
adesso
Overview: Adesso SE operates as an IT services provider in Germany, Austria, Switzerland, and other international markets, with a market capitalization of approximately €597.26 million.
Operations: The company generates its revenue primarily from two segments: IT Services, which brought in €1.31 billion, and IT Solutions, contributing €119.88 million.
Estimated Discount To Fair Value: 11.9%
Adesso SE, priced at €91.6, is trading 11.9% below our estimated fair value of €104.02, suggesting undervaluation based on cash flows. While its revenue growth at 11.8% per year is robust compared to the German market's 5.2%, earnings are expected to grow significantly by approximately 38% annually. However, concerns include poor coverage of interest payments by earnings and a forecasted low return on equity of 13.6% in three years, indicating potential financial stress or underperformance in generating shareholder value from equity investments.
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The growth report we've compiled suggests that adesso's future prospects could be on the up.
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Take a closer look at adesso's balance sheet health here in our report.
adidas
Overview: Adidas AG operates globally, designing, developing, producing, and marketing athletic and sports lifestyle products across multiple regions, with a market capitalization of approximately €41.28 billion.
Operations: The company generates revenue primarily from three key regions: North America (€5.16 billion), Greater China (€3.20 billion), and Latin America (€2.31 billion).
Estimated Discount To Fair Value: 32.1%