With the current price/earnings ratio (P/E ratio), the DAX is overvalued by 25 percent compared to its 20-year average.

However, five of the 40 shares are valued more than 30 percent lower than their long-term average. The valuation discount is 51 percent for one share and as much as 73 percent for one share.

Handelsblatt presents these 5 stocks, the following is an excerpt from the article.

Vonovia $VNA (+0,23%) : 33 percent valuation discount

Germany's largest housing group is growing again. In the past two years, Vonovia had not started any new construction projects due to the turnaround in interest rates and increased construction costs. Now 3000 new apartments are to be built and unrenovated properties purchased and renovated.

Analysts expect an average net profit of 2.15 billion euros for the year as a whole. The trend is pointing upwards: Six weeks ago it was just over two billion euros, twelve weeks ago it was 1.9 billion euros. Vonovia is forecasting the highest operating result in its history for 2026.

With a P/E ratio of 12.2 based on the profits expected by analysts over the next four quarters, the share is moderately valued and 33 percent lower than the long-term average.

VW $VOW (+0,69%): 35 percent valuation discount

VW was in the red in the third quarter. After a profit of 1.56 billion euros in the same period of the previous year, the Group posted a billion-euro loss.

This was caused by charges of 7.5 billion euros, primarily due to increased customs duties, the adjustment of the product strategy at Porsche $P911 (+1,3%) and write-downs on Porsche's goodwill.

By contrast, the long-weakening core brand Volkswagen improved. A comprehensive cost-cutting program also had an impact.

For the current full year, analysts are forecasting an average net profit of 6.5 billion euros after 11.35 billion euros last year. The trend is pointing steeply downwards, as three months ago the estimate was just under nine billion euros.

Taking this sharply lowered profit forecast into account, VW is nevertheless valued extremely low with a P/E ratio of just 4.4. This is a discount of 35 percent compared to the Group's own average. No other DAX stock is cheaper - with the exception of Porsche Holding, which belongs to VW.

FMC $FME (+0,16%)
: 41 percent valuation discount

No company in the DAX is as dependent on the US market as the dialysis specialist Fresenius Medical Care (FMC). FMC generates around 70 percent of its sales in North America.

However, business on the most important continent for the healthcare specialist is - slightly - under pressure. The treatment figures of the blood purification specialist are merely stagnating.

In the third quarter, however, total sales rose by ten percent to 4.9 billion euros compared to the same period last year, exceeding market expectations by three percent. Currency-adjusted earnings before interest and taxes rose by 28 percent to 574 million euros. This also exceeded the company's expectations.

The rising profits at a share price that has only stagnated for six months mean that the valuation has fallen sharply. With a P/E ratio of 10.1 based on the profits forecast by analysts for the next four quarters, the share is valued 41% lower than the 20-year average.

Bayer $BAYN (-0,27%) : 51 percent valuation discount

With a P/E ratio of only 5.6 based on the average net profits expected by analysts over the next four quarters, Bayer shares are valued lower than all other major pharmaceutical stocks in the western world. Compared to its own 20-year average, the discount is 51 percent.

The biggest construction site for the Group is a bad decision made ten years ago: the purchase of the controversial US seed and pesticide manufacturer Monsanto. Its weedkiller glyphosate is blamed by patients for their cancer and they are demanding billions in compensation.

The favorable valuation is based on the hope that profit expectations will be fulfilled and that no new write-downs in the billions will be made. However, this is just as uncertain as an end to the lawsuits. Success with new blockbusters in the pharmaceutical division is also by no means a foregone conclusion.

Zalando $ZAL (-1,41%)
: 73 percent valuation discount

Anyone buying this DAX stock is paying a P/E ratio of 15.4, which is not cheap compared to the DAX, but the share is valued 73 percent lower than its own long-term average.

The share is currently trading more than 70 percent below its record high, although the company is expected to earn more in the current financial year than ever before. After a net profit of 251 million euros in the previous year, analysts are forecasting a good 290 million euros for the current year.

Source text (excerpt) & graphic: Handelsblatt, 07.11.2025

The second "What if" report by climate tech company Right° was published on Thursday. Right° compares company data with the goals of the Paris Climate Agreement. Right° sets the limit value at a global warming of 1.7 degrees by 2100.

None of the 34 DAX companies analyzed would be Paris-compatible if no further measures were taken to reduce emissions. However, according to the data, twelve companies have decoupled their value creation from climate-damaging emissions in recent years to such an extent that they are on a Paris-compatible path.

And five of these companies also have a Paris-compatible climate target.

For companies, doing business in line with Paris means decoupling their value creation from climate-damaging emissions.

According to the "What if" report, the climate pioneers RWE $RWESiemens Healthineers $SHL (+0,99%)Adidas $ADS (+1,99%)Deutsche Börse $DB1 (-0,37%) and Porsche, which was relegated from the DAX $P911 (+1,3%). Both the climate targets and the track record of these companies are on a Paris-compatible path.

However, there are clear differences between the DAX companies in terms of their track record. Many are a long way off the targets of the Paris Climate Agreement.

Source text (excerpt) & graphic: Handelsblatt, 31.10.25

$P911 (+1,3%)

The Porsche share has found an upward trend again after some very poor months recently... although the quarterly figures left a lot to be desired, this did not impress investors much, especially as the losses were already priced in...

In particular, the change of CEO at the turn of the year gives investors hope of a recovery.

The €50 per share mark could soon be reached again.

There is also positive news from the poor Q3: a solid cash flow, which will help support the current restructuring phase.

The outgoing Porsche $P911 (+1,3%) CEO Oliver Blume believes the sports car manufacturer is well positioned for the future following the realignment. In "Bild am Sonntag", he referred to having implemented a comprehensive realignment of structures, costs and product strategy by 2025.

There has been considerable investment in completely flexible drive systems: combustion, hybrid and electric. This has created a "very robust position for the future", said Blume, admitting that Porsche is in a "massive crisis". At the same time, he was optimistic: "There will be a clearly positive trend from next year."

On Friday, Posche had announced a slump in profits and justified this with the realignment. The billions in costs for the extension of the combustion engine have almost completely wiped out the profit of the sports and off-road vehicle manufacturer Porsche in the first three quarters. The management expects that the low point will be passed this year and that Porsche will improve noticeably from 2026.

Source text (excerpt): Handelsblatt, 10/26/2025

$P911 (+1,3%)

now there is a successor to the current CEO .... it will be Michael Leiters

$P911 (+1,3%)

The sports car manufacturer has recently had to contend with difficult waters....

Among other things, low sales in China and the tariffs led to the DAX ejection...

But in my opinion, many negative factors have already been priced in. The share can be seen as oversold if you look at the RSI.

In my opinion, Porsche is and remains a strong brand that currently has a lot of potential in relation to its original price and may soon be back in the fast lane.

Is this a unique opportunity to add Porsche to your portfolio at such a low price?

I am also interested in your opinion! I look forward to every new perspective!

I've only been on this platform for two weeks, but at the end of the month there will be the first monthly update on the portfolio ... 😉

Start: 1,022,339 euros

End: 1,116,452 euros

Deposit: 41,000 euros

Profit:
+ 53,113 euros (+5.2%)

This month was quite a decent month in terms of the equity portfolio. The portfolio performance was driven primarily by gold stocks ($KNT (+0,61%)
$EQX (+0%) ). The gold price explosion, as I like to call it, is of course benefiting here. I assume that gold will continue to perform strongly and provide support for mining stocks. 📈

The automotive stocks in the portfolio have performed less well ($PAH3 (-0,61%)
$P911 (+1,3%)
$VOW (+0,69%) ). This was due to the profit warnings from Porsche and subsequently VW. Nevertheless, I remain optimistic and consider them undervalued at this level despite the difficult situation. 📉

Otherwise, I received around 1,000 euros in dividends this month and realized around 4,000 euros in gains on Alibaba and Baidu, among others. 💵

➡️🆓: On my way towards 4 million total assets, the target achievement level is now 39%. 😊

Let's see how October turns out. As always, it remains exciting!

For the Porsche sports car brand $P911 (+1,3%) CEO Blume announced that the cost-cutting program would be intensified. "We are supplementing the first savings program," he said. We will "intervene very rigorously in order to make Porsche really robust". The sports car manufacturer will not achieve its strategic return target of 20 percent in the foreseeable future.

He cited the dramatic slump in the luxury market in China and high tariffs in the USA as reasons for this. Together, the two markets account for more than 60 percent of Porsche's total volume. "You don't have to be an expert to deduce that this is putting a business model like Porsche's under complete pressure," explained Blume on Monday. The party that the automotive industry had celebrated for decades was over in this form.

However, Blume was confident about the future. He described the current financial year 2025 as the "absolute low point", which will be used for necessary restructuring. Things should then start to pick up again from next year.

If the general conditions change in the future, the original target of 20 percent is also conceivable again.

Source text (excerpt): Handelsblatt, 08.09.25

As of September 22, 2025, Porsche AG will be removed from Germany's leading index $P911 (+1,3%) will be removed from the leading German index DAX 40 due to a massive drop in share price of over a third last year - triggered by US import tariffs and declining demand, particularly in China. This makes Porsche one of the weakest DAX stocks in 2025. Deutsche Börse is making this change as part of the regular index recomposition. After being kicked out, Porsche will move to the mid-cap index MDAX .

Who moves up - the climbers in the DAX

Two newcomers fill the gap in the DAX:

• Scout24 AG $G24 (+0,26%) - the online real estate platform operator, moves from the MDAX to the DAX.
• Gea Group AG $G1A (-0,58%) - a major machinery and engineering group, also moved up from the MDAX.

Further index changes (MDAX, SDAX etc.)

The DAX is not the only index to be shaken up:

• Fielmann AG $FIE (+0,06%) moves up from the SDAX to the MDAX.
• Evotec SE $EVT (-0,15%) leaves the MDAX to make room for Fielmann.
• 1&1 AG $1U1 (-1,79%) joins the SDAX and replaces SGL Carbon $SGL (+0,08%)
• 
  In addition, 1&1 $1U1 (-1,79%) is included in the TecDAX - instead of the biosimilar developer Formycon $FYB (-0,53%)

$P911 (+1,3%)