Deep Value 2024: Lufthansa and Volkswagen – The German stocks with enormous potential!

Deep Value 2024: Lufthansa and Volkswagen – The German stocks with enormous potential!

According to a report by www.aktienwelt360.de,

This article discusses the potential possibility of deep value investing in German stocks such as Lufthansa and Volkswagen. It is noted that both companies are currently undervalued and could offer long-term return potential. The analysis looks at the fundamental valuation situation, which provides insight into the opportunities and risks of these investments.

Lufthansa, Europe's second-largest airline, has struggled with the challenges of the COVID-19 pandemic in recent years. However, the latest quarterly figures show a recovery, with increasing sales and EBIT. Lufthansa shares are currently trading at a forward P/E ratio of 8.3 and a P/B ratio of 0.9, which are well below historical highs. However, there is a risk of possible declines in earnings in the future and the aviation industry is considered cyclical and fragmented.

Volkswagen shows a similar picture with an expected P/E ratio of 4.7 and a P/B ratio of 0.3. The auto giant faces challenges related to electrification, market weakness in China and cyclical pressures. The numerous problems weigh on the valuation and lead to uncertainty and falling share prices.

Overall, both Lufthansa and Volkswagen show long-term return potential as deep value investments. However, investors should consider the risk of thorough research and risk analysis to make informed decisions.

The potential return and risks of such deep value investments should be carefully considered as they can impact the market, consumer and industry. It is important to consider the fundamental valuation situation and long-term prospects to make an informed investment decision.