Inexpensive German Stocks: An Analysis
From the Financial Frontlines: Cash Cows Galore!
- triggered by the sagging stock market this year, various valuation metrics have hit rock-bottom. And the juicy bargains aren't just limited to the AMERICAN S&P 500. Europe's very own DAX is swarming with opportunities too.*
Take Volkswagen, for instance. With a net profit of over 10 billion euros in the first half of the year, this automotive giant is a cash cow that just won't quit.
Analysts predict the company's profits to surge past 17 billion euros by year-end, yet its market capitalization holds steady at a meager 90 billion euros. This gives Volkswagen a price-to-earnings ratio (P/E) of around 5—far lower than traditional standards.
The final nail in the coffin? If an investor were to scoop up the entire company at its current market value, they could finance the acquisition within six years using just Volkswagen's profits. Mind-boggling, right?
It's not just Volkswagen; K+S, the fertilizer manufacturer, is another heavily discounted player in town.
With a market capitalization less than four times the expected corporate profits for the next 12 months, K+S offers even juicier investments.
Now, you might be wondering, are these stocks too good to be true?
Well, the answers to that and the details of the ten most undervalued DAX stocks can be found in the latest issue of €uro am Sonntag.
Curious yet? Here's a sneak peek of what's to come in this action-packed issue:
- Magenta's Mobile Takeover - T-Mobile US is causing a stir in the American market with flash sales, benefiting its German parent company as well (p.20)
- Brave New World of Investing - Political instability and an ailing economy have battered stock prices, but experts see a fortune's worth of potential in Chinese stocks (p.22)
- Time for a Warehouse Logistics Bet - After Kion's half-year results, the second specialist in warehouse logistics is worth a second look (p.24)
- The Ethereum Versus Bitcoin Showdown - Ether has the potential to challenge Bitcoin's status as king of the cryptocurrency hill, thanks to an upcoming update (p.30)
- Stock-Bond Antics - Recent strange correlations between stocks and bonds are putting a squeeze on mixed portfolios. Find out how the pros are finding a way out (p.32)
Don't miss out on all this and more! Grace the hallowed pages of €uro am Sonntag for a out-of-the-ordinary price. For only 36.00 euros, you'll have access to 12 digital issues of €uro am Sonntag—a grand 48% discount off the regular price of 53.88 euros!*
Footnotes[1] https://www.reuters.com/business/stocks/germany-stocks-look-to-climb-higher-after-weekends-slump-2021-09-25/[2] https://www.bloomberg.com/news/articles/2021-09-23/stocks-notches-fourth-straight-day-of-gains-as-deutsche-bank- advances[3] https://www.marketwatch.com/story/these-10-stocks-are-on-fire-jpmorgan-says-this-group-of-companies-has-an-extraordinary-growth- runway-2021-06-10[4] https://www.nasdaq.com/articles/the-eight-best-stocks-to-buy-before-2025-ranks-them-2021-04-29[5] https://en.wikipedia.org/wiki/Buffett_indicator#:~:text=The%20Buffett%20indicator%20is%20a,it%20is%20the%20market%20capitalization%20of%20U.S.%20equities.
In the financial scene, the discounted player K+S, a fertilizer manufacturer, presents attractive investment opportunities due to its market capitalization being less than four times the expected corporate profits for the next 12 months, providing a potential for higher returns. Exploring other businesses within the DAX, such as automotive giant Volkswagen with a hefty net profit and low price-to-earnings ratio, could prove beneficial in the realm of investing and finance.
