Sunday 26 February 2017

Analysis of DBAG 2017

DBAG, logo, 2017


Business: A German private equity company. Their focus lies with the management buy out of small and medium sized companies that have excellent products. To see their full company portfolio then please click here. Five new investments joined during 2015.

Active: Germany, and surroundings. Companies are sometimes more globally oriented. 

P/E: 10.2

Here you can find the previous analysis of DBAG 2016.

contrarian analysis, DBAG

The P/E for DBAG is good today with its 10.2 and the P/B is also good with 1.4 which gives a very clear by signal from Graham. There is not need to bring up earnings to sales but the ROE is up at almost 14% which is so, so. The book to debt ratio is great with over 10.
Their revenue is going up and down and last year, 2016, was a good year but so was 2011 so the growth rate in these five years have not been impressive with its 2% and this then gives us a motivated P/E of 10 to 12 which means that DBAG is fairly valued on the market today.
They pay an acceptable dividend in the size of 3.5% which correspond to 36% of their earnings so hopefully something that they will be able to keep up.

Conclusion: Graham says yes and I do not. The P/E and P/B is good and so is the dividend that the pay but they have started to get close to full valuation and for this reason I think there will be better moments to step in as a shareholder, such as after the dividend payment. This said I will still remain as a shareholder in DBAG.

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