Estimated Discount To Fair Value: 43.1%

MTU Aero Engines, with a current trading price of €238.8, is positioned below its fair value estimated at €399.86, reflecting a substantial undervaluation based on discounted cash flow analysis. Despite a slight decline in net income and EPS as reported in Q1 2024 earnings, the company's revenue growth outpaces the German market average at 12.2% per year compared to 5.2%. Forecasted to turn profitable within three years, MTU also anticipates robust annual profit growth and a high return on equity of 20.3% in the near future.

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

• Click to explore a detailed breakdown of our findings in MTU Aero Engines' balance sheet health report.

SAP

Overview: SAP SE operates globally, offering a wide range of applications, technology, and services, with a market capitalization of approximately €219.63 billion.

Operations: The company generates €31.81 billion from its Applications, Technology & Services segment.

Estimated Discount To Fair Value: 33.7%

SAP, priced at €189.52, appears undervalued by 30.3% against a fair value of €271.78 based on cash flow analysis, despite recent strategic expansions and technological integrations aimed at enhancing manufacturing efficiencies and cloud ERP experiences. While SAP's revenue growth is projected to be modest compared to the broader market, its earnings are expected to increase significantly over the next three years. However, its forecasted return on equity remains relatively low at 16.1%.

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

• Take a closer look at SAP's balance sheet health here in our report.

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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:ADS XTRA:MTX and XTRA:SAP.

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