Estimated Discount To Fair Value: 28.4%

Gerresheimer AG, priced at €93.75, appears undervalued against a fair value estimate of €130.89, reflecting a substantial discount. Despite recent earnings showing a slight decline with net income at €32.46 million in Q2 2024 from €34.43 million the previous year, the company's financial outlook remains positive with expected revenue growth outpacing the German market at 11.1% annually and forecasted earnings growth of 22.22% per year. However, it carries a high level of debt which could be seen as a financial risk moving forward.

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

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

SAP

Overview: SAP SE operates globally, offering a wide range of applications, technology, and services through its subsidiaries, with a market capitalization of approximately €228.36 billion.

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

Estimated Discount To Fair Value: 22.3%

SAP SE, with a current price of €195.78, is trading below its calculated fair value of €251.97, suggesting undervaluation based on discounted cash flows. Despite a significant drop in net income to €94 million for the first half of 2024 from last year's €3,640 million and recent earnings volatility due to large one-off items, SAP's revenue growth projections remain robust at 10% per year—outpacing the German market average of 5.3%. Earnings are also expected to surge by approximately 37.7% annually over the next three years, exceeding the market forecast of 19.7%. This growth trajectory is supported by strategic expansions like Kyndryl’s adoption and service extension for SAP solutions which could enhance long-term value despite short-term earnings inconsistencies.

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

• Click to explore a detailed breakdown of our findings in SAP's balance sheet health 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:GXI and XTRA:SAP.

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