Adidas And Two More Stocks Estimated As Undervalued On The German Exchange
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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% |
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.
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According our earnings growth report, there's an indication that adidas might be ready to expand.
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Dive into the specifics of adidas here with our thorough financial health report.
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.