German Stocks Trading Below Estimated Value In October 2024

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In October 2024, Germany's DAX index experienced a notable rise of 1.46%, buoyed by the European Central Bank's decision to cut interest rates for the second consecutive meeting, fueling expectations of further monetary easing. As investors navigate these evolving economic conditions, identifying stocks trading below their estimated value can offer potential opportunities for those seeking to capitalize on market inefficiencies and favorable valuations.

Top 10 Undervalued Stocks Based On Cash Flows In Germany

Name

Current Price

Fair Value (Est)

Discount (Est)

technotrans (XTRA:TTR1)

€16.30

€30.87

47.2%

init innovation in traffic systems (XTRA:IXX)

€37.50

€52.32

28.3%

2G Energy (XTRA:2GB)

€22.70

€41.31

45%

Formycon (XTRA:FYB)

€50.40

€81.71

38.3%

CeoTronics (DB:CEK)

€5.40

€10.11

46.6%

Friedrich Vorwerk Group (XTRA:VH2)

€29.60

€46.34

36.1%

Schweizer Electronic (XTRA:SCE)

€3.72

€7.19

48.3%

Your Family Entertainment (DB:RTV)

€2.50

€4.21

40.6%

LPKF Laser & Electronics (XTRA:LPK)

€8.74

€12.46

29.8%

MTU Aero Engines (XTRA:MTX)

€312.60

€566.93

44.9%

Click here to see the full list of 20 stocks from our Undervalued German Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener.

init innovation in traffic systems

Overview: Init innovation in traffic systems SE, along with its subsidiaries, provides intelligent transportation systems solutions for public transportation globally and has a market cap of approximately €370.36 million.

Operations: The company generates revenue from its Wireless Communications Equipment segment, amounting to €235.67 million.

Estimated Discount To Fair Value: 28.3%

init innovation in traffic systems SE is trading at €37.5, significantly below its estimated fair value of €52.32, suggesting it may be undervalued based on cash flows. Despite a decrease in quarterly net income to €2.42 million from €3.03 million the previous year, earnings for the first half improved notably to €4.82 million from €1.34 million year-on-year, reflecting strong revenue growth and potential for future profitability with forecasted annual earnings growth of 21.6%.

XTRA:IXX Discounted Cash Flow as at Oct 2024
XTRA:IXX Discounted Cash Flow as at Oct 2024

Verbio

Overview: Verbio SE is involved in the production and distribution of fuels and finished products across Germany, Europe, North America, and internationally, with a market cap of €962.85 million.

Operations: The company's revenue primarily comes from its Biodiesel segment, generating €989.66 million, and its Bioethanol (including Biomethane) segment, contributing €661.38 million.