1&1 Valuation

Is DRI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DRI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DRI (€11.36) is trading below our estimate of fair value (€200.86)

Significantly Below Fair Value: DRI is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DRI?

Key metric: As DRI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DRI. This is calculated by dividing DRI's market cap by their current earnings.
What is DRI's PE Ratio?
PE Ratio7.8x
Earnings€258.26m
Market Cap€2.01b

Price to Earnings Ratio vs Peers

How does DRI's PE Ratio compare to its peers?

The above table shows the PE ratio for DRI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.3x
TKA Telekom Austria
8.7x8.3%€5.1b
ETS EuroTeleSites
12.9xn/a€789.1m
VFQS Vodafone Qatar P.Q.S.C
13.4x6.7%ر.ق7.9b
7030 Mobile Telecommunications Company Saudi Arabia
34.3x22.6%ر.س9.2b
DRI 1&1
7.8x1.8%€2.0b

Price-To-Earnings vs Peers: DRI is good value based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (17.3x).


Price to Earnings Ratio vs Industry

How does DRI's PE Ratio compare vs other companies in the Global Wireless Telecom Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DRI 7.8xIndustry Avg. 17.4xNo. of Companies9PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DRI is good value based on its Price-To-Earnings Ratio (7.8x) compared to the Global Wireless Telecom industry average (16.6x).


Price to Earnings Ratio vs Fair Ratio

What is DRI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DRI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DRI's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DRI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€11.36
€16.84
+48.3%
28.1%€30.00€10.20n/a14
Dec ’25€11.82
€18.73
+58.4%
28.9%€30.00€10.20n/a14
Nov ’25€13.02
€19.31
+48.3%
26.0%€30.00€10.20n/a14
Oct ’25€13.76
€19.31
+40.3%
26.0%€30.00€10.20n/a14
Sep ’25€14.40
€19.52
+35.6%
27.1%€30.00€10.20n/a13
Aug ’25€14.64
€20.90
+42.8%
24.5%€32.00€10.20n/a13
Jul ’25€15.98
€20.90
+30.8%
24.5%€32.00€10.20n/a13
Jun ’25€17.46
€20.97
+20.1%
24.4%€32.00€10.20n/a13
May ’25€16.92
€20.45
+20.9%
23.3%€32.00€10.20n/a13
Apr ’25€15.96
€20.47
+28.3%
23.3%€32.00€10.20n/a13
Mar ’25€17.48
€20.57
+17.7%
23.1%€32.00€10.50n/a13
Feb ’25€18.32
€20.37
+11.2%
23.6%€32.00€10.50n/a13
Jan ’25€18.18
€19.46
+7.0%
23.4%€30.00€10.50n/a13
Dec ’24€17.08
€18.22
+6.7%
32.6%€30.00€10.50€11.8213
Nov ’24€16.14
€18.05
+11.8%
32.8%€30.00€10.50€13.0213
Oct ’24€15.98
€17.55
+9.8%
34.3%€30.00€10.50€13.7613
Sep ’24€13.78
€18.19
+32.0%
44.5%€38.00€9.10€14.4014
Aug ’24€10.26
€17.46
+70.1%
55.4%€38.00€9.10€14.6414
Jul ’24€10.14
€18.28
+80.2%
52.9%€38.00€9.10€15.9813
Jun ’24€10.20
€19.11
+87.4%
50.1%€38.00€9.10€17.4614
May ’24€10.56
€19.50
+84.7%
41.7%€38.00€9.10€16.9215
Apr ’24€10.15
€19.98
+96.9%
41.1%€38.00€9.10€15.9617
Mar ’24€11.65
€20.74
+78.1%
38.2%€38.00€11.00€17.4816
Feb ’24€12.80
€21.12
+65.0%
36.9%€38.00€11.00€18.3216
Jan ’24€11.57
€22.37
+93.3%
34.3%€38.00€14.00€18.1816
Dec ’23€13.82
€21.87
+58.2%
30.6%€38.00€14.00€17.0816

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 06:50
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

1&1 AG is covered by 34 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew Charles BealeArete Research Services LLP
Stephen MalcolmArete Research Services LLP
Ganesha NageshaBarclays