Exploring Undervalued German Exchange Stocks With Intrinsic Discounts Ranging From 35% to 49.6%
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Amid a backdrop of mixed performances across major European markets, Germany's DAX index has shown resilience with a modest rise. This context sets the stage for evaluating potential opportunities in undervalued stocks on the German exchange, where intrinsic discounts suggest hidden value in an otherwise cautious market environment.
Top 10 Undervalued Stocks Based On Cash Flows In Germany
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Kontron (XTRA:SANT) | €19.14 | €32.79 | 41.6% |
| Novem Group (XTRA:NVM) | €5.46 | €10.20 | 46.5% |
| PSI Software (XTRA:PSAN) | €22.00 | €43.65 | 49.6% |
| Stratec (XTRA:SBS) | €45.85 | €81.28 | 43.6% |
| MTU Aero Engines (XTRA:MTX) | €236.60 | €419.40 | 43.6% |
| CHAPTERS Group (XTRA:CHG) | €23.60 | €46.77 | 49.5% |
| SBF (DB:CY1K) | €3.46 | €5.75 | 39.8% |
| Dr. H?nle (XTRA:HNL) | €17.00 | €33.96 | 49.9% |
| Your Family Entertainment (DB:RTV) | €2.40 | €4.52 | 46.9% |
| Redcare Pharmacy (XTRA:RDC) | €111.00 | €208.66 | 46.8% |
Underneath we present a selection of stocks filtered out by our screen
MTU Aero Engines
Overview: MTU Aero Engines AG operates in the development, manufacture, marketing, and maintenance of commercial and military aircraft engines and industrial gas turbines globally, with a market capitalization of approximately €12.73 billion.
Operations: MTU Aero Engines generates revenue through two primary segments: Commercial Maintenance Business (MRO), which brought in €4.35 billion, and the Commercial and Military Engine Business (OEM) with €1.27 billion in earnings.
Estimated Discount To Fair Value: 43.6%
MTU Aero Engines, valued at €236.6, is trading significantly under its fair value of €419.4, indicating a potential undervaluation based on cash flows. Despite a recent dip in net income from €134 million to €126 million in Q1 2024, the company's revenue growth outpaces the German market at 12.2% annually compared to 5.2%. With earnings expected to grow by 35.5% per year and profitability forecast within three years, MTU presents an intriguing case for those looking at cash flow-based valuations in Germany’s aerospace sector.
PSI Software
Overview: PSI Software SE specializes in developing and integrating software solutions to optimize the flow of energy and materials for utilities and industries globally, with a market capitalization of approximately €340.74 million.
Operations: The company's revenue is primarily generated from two segments: Energy Management (€141.78 million) and Production Management (€148.79 million).