Thursday, May 28, 2015

All the companies on DAX 2015

DAX, the 30 largest German companies

The list is once again completed and I am proud to claim that I am more than one month quicker than last year and I hope that in 2016 I will have managed to finish the list already in the end of April / beginning of May. Now I must quickly sort out my hated PIFs with reweighing of the shares and companies and then finally start looking for more companies while reporting the half year reports that will soon start dropping in.

For the previous report please click on All the companies on DAX 2014.

Below is the snapshot of all the companies on DAX,there is a link to the Google Doc on that page which gets updated every 5 or 15 minutes or so with the current share prices.

DAX, companies, Germany, 2015

The company list with links and P/E values:

adidas (analysis of Adidas 2015) - P/E: 29.55

ALLIANZ (analysis of Allianz 2015) - P/E: 11.85

BASF (analysis of BASF 2015) - P/E: 15.62

BAYER (analysis of Bayer 2015) - P/E: 32.22

BEIERSDORF (analysis of Beiersdorf 2015) - P/E: 38.46

BMW (analysis of BMW 2015) - P/E: 12.46

Commerzbank (analysis of Coba 2015) - P/E: 56.93

CONTINENTAL (analysis of Continental 2015)- P/E: 18.65

DAIMLER (analysis of Daimler 2015) - P/E: 13.24

DT. BANK (analysis of DB 2015) - P/E: 27.44

DT. BÖRSE (analysis of Deutsche Börse 2015)- P/E: 19.02

DT. POST (analysis of Deutsche Post 2015) - P/E: 17.93

DT. TELEKOM (analysis of Deutsche Telekom 2015) - P/E: 25.76

E.ON (analysis of E.On. 2015) - P/E: -9.02 (excluded)

FMC (analysis of FMC 2015) - P/E: 22.66

FRESENIUS (analysis of Fresenius 2015) - P/E: 28.20

HEID. CEMENT (analysis of Heidelberg Cement 2015) - P/E: 28.66

HENKEL (analysis of Henkel 2015) - P/E: 28.42

INFINEON (analysis of Infineon 2015) - P/E: 24.28

K+S (analysis of K+S 2015) - P/E: 16.81

LANXESS (analysis of Lanxess 2015) - P/E: 99.97 (excluded)

LINDE (analysis of Linde 2015) - P/E: 32.38

LUFTHANSA (analysis of Lufthansa 2015) - P/E: 115.94 (excluded)

MERCK (analysis of Merck 2015) - P/E: 36.08

MÜNCH. RÜCK (analysis of MüRe 2015) - P/E: 10.94

RWE (analysis of RWE 2015) - P/E: 8.10

SAP (analysis of SAP 2015) - P/E: 23.63

SIEMENS (analysis of Siemens 2015) - P/E: 16.08

THYSSENKRUPP (analysis of ThyssenKrupp 2015) - P/E: 67.40 (excluded)

VOLKSWAGEN (analysis of VW 2015) - P/E: 10.04

This time I decided to exclude four companies from the average P/E calculation since they were having extreme earnings and by this I mean either a loss or very, very low in comparison to other years.

For the remaining 26 companies we then receive an average P/E of 23.3 which means that we are now almost 38% above the historical P/E value of DAX of 16.9. What concerns me is that several of the companies have good earnings and are being traded at a P/E well above 20.

We have gone from an average P/E of 16.5 for 2012 to 17.3 for 2013 to now 23.3 based on the annual reports of 2014.

Conclusion: Too me this very clearly says that DAX is highly overvalued at the moment and already last year I spoke of caution but I now realise that it was silly because a stock market that is 2% above the historical average is %-age wise nothing. With 38% above, which it is now, it starts to be a bit more interesting and in my opinion the P/E values start to be crazy high! My hate/love object Beiersdorf as an example (love their products/company and hate their share price). Do I really want to wait for 38 years for them to earn back what I paid for the shares? A company that has grown 0.3% yearly for the last five years AND are already selling their products in 200 countries world wide? The revenue and earnings were even great in 2014! Finally the 0.9% dividends that they offer will not keep me warm on a winter night. So to me there are some crazy valuations right now on DAX and too much money are accepting too low interest/dividend for my liking.

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