Estimated Discount To Fair Value: 45.8%

MTU Aero Engines is trading significantly below its estimated fair value of €492.25, currently priced at €267. The company reported half-year sales of €3.39 billion, up from €3.09 billion a year ago, with net income rising to €285 million from €255 million. Earnings per share also increased to €5.3 from €4.75 last year. With revenue growth forecasted at 12.1% annually and expected profitability within three years, MTU appears undervalued based on discounted cash flow analysis and strong financial performance indicators.

• According our earnings growth report, there's an indication that MTU Aero Engines might be ready to expand.

• Unlock comprehensive insights into our analysis of MTU Aero Engines stock in this financial health report.

SAP

Overview: SAP SE, along with its subsidiaries, offers applications, technology, and services globally, with a market cap of €228.50 billion.

Operations: SAP SE, with its subsidiaries, generates €32.54 billion from its applications, technology, and services segments worldwide.

Estimated Discount To Fair Value: 31.8%

SAP is trading 31.8% below its estimated fair value of €287.35, currently priced at €195.9. Recent client announcements, including partnerships with Xerox and Answerthink, highlight SAP's robust cloud ERP solutions aimed at enhancing operational efficiency and reducing IT costs. Despite a significant drop in net income for the second quarter of 2024 (€918 million from €2.98 billion), SAP's earnings are expected to grow substantially over the next three years, indicating potential undervaluation based on cash flow analysis.

• The analysis detailed in our SAP growth report hints at robust future financial performance.

• Get an in-depth perspective on SAP's balance sheet by reading our health report here.

Key Takeaways

• Unlock our comprehensive list of 26 Undervalued German Stocks Based On Cash Flows by clicking here.

• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.

• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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:MBB XTRA:MTX and XTRA:SAP.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]