Estimated Discount To Fair Value: 39.9%

MTU Aero Engines AG, priced at €253.1, is valued below its estimated fair value of €421.48, indicating a significant undervaluation based on cash flows. The company's recent financials show a slight decline in net income from €134 million to €126 million year-over-year despite increased sales from €1.54 billion to €1.65 billion. Forecasted revenue growth at 12.1% annually surpasses the German market's 5.3%, and profitability is expected within three years with robust earnings growth projected at 34.95% annually.

• Our expertly prepared growth report on MTU Aero Engines implies its future financial outlook may be stronger than recent results.

• Take a closer look at MTU Aero Engines' balance sheet health here in our report.

SAP

Overview: SAP SE operates globally, offering a wide range of applications, technology, and services through its subsidiaries, with a market capitalization of approximately €226.07 billion.

Operations: The company generates €32.54 billion from its Applications, Technology & Services segment.

Estimated Discount To Fair Value: 24.5%

SAP, priced at €193.82, trades 24.5% below its fair value of €256.86, reflecting potential undervaluation based on cash flows. With earnings growth anticipated at a significant rate annually over the next three years and revenue growth forecasted to outpace the German market average, SAP appears attractively positioned despite a recent drop in net income from €2.98 billion to €918 million in Q2 2024 and challenges like large one-off items affecting financial results. Additionally, strategic expansions like the Kyndryl partnership enhance its cloud solutions delivery capabilities.

• Insights from our recent growth report point to a promising forecast for SAP's business outlook.

• Navigate through the intricacies of SAP with our comprehensive financial health report here.

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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 XTRA:CHG XTRA:MTX and XTRA:SAP.

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