Adidas And Two More Stocks Estimated As Undervalued On The German Exchange

In This Article:

Amidst a global landscape of mixed economic signals, Germany's DAX index demonstrated resilience with a notable gain of 1.35% last week, reflecting investor optimism in certain sectors despite broader market uncertainties. In such an environment, identifying undervalued stocks can offer potential opportunities for investors looking for value in a fluctuating market.

Top 10 Undervalued Stocks Based On Cash Flows In Germany

Name

Current Price

Fair Value (Est)

Discount (Est)

Kontron (XTRA:SANT)

€19.35

€30.82

37.2%

Stabilus (XTRA:STM)

€44.10

€84.47

47.8%

technotrans (XTRA:TTR1)

€16.45

€29.04

43.3%

Stratec (XTRA:SBS)

€42.20

€82.34

48.8%

CHAPTERS Group (XTRA:CHG)

€24.60

€43.30

43.2%

MTU Aero Engines (XTRA:MTX)

€255.00

€421.47

39.5%

Vitesco Technologies Group (XTRA:VTSC)

€56.95

€111.69

49%

Your Family Entertainment (DB:RTV)

€2.48

€4.56

45.6%

INTERSHOP Communications (XTRA:ISHA)

€2.00

€3.56

43.8%

Dr. H?nle (XTRA:HNL)

€17.95

€34.88

48.5%

Click here to see the full list of 27 stocks from our Undervalued German Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

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 €42.10 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: 32.9%

Adidas AG, currently trading at €235.8, is valued below its estimated fair value of €351.47, marking a substantial undervaluation based on discounted cash flows. Despite slower revenue growth projections of 8.1% annually compared to faster-growing sectors, the company's earnings are expected to surge by 40.9% per year, outpacing the German market average. Recent upward revisions in 2024 earnings guidance and a significant recovery in Q1 net income underscore improving financial health and operational momentum.

XTRA:ADS Discounted Cash Flow as at Jul 2024
XTRA:ADS Discounted Cash Flow as at Jul 2024

SAP

Overview: SAP SE, a global enterprise that offers applications, technology, and services, has a market capitalization of approximately €224.97 billion.

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

Estimated Discount To Fair Value: 23.4%

SAP, priced at €192.88, trades below its fair value of €251.9, reflecting a 23.4% undervaluation based on discounted cash flows. Despite revenue growth projections lagging behind the broader market at 10% annually compared to the German average of 20%, SAP's earnings are expected to increase by a robust 37.7% yearly, outperforming the German market forecast of 19.8%. Recent strategic alliances and client expansions underscore its ongoing commitment to cloud and digital transformation initiatives.