Discounted Cash Flow Calculation for XTRA:DWS using Excess Returns Model Model
The calculations below outline how an intrinsic value for DWS Group GmbH KGaA is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Amount off the current price
DWS Group GmbH KGaA
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
DWS Group GmbH KGaA
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
DWS Group GmbH KGaA's share price is below the future cash flow value, and at a moderate discount (> 20%).
DWS Group GmbH KGaA's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
DWS Group GmbH KGaA's
is considered below, and whether this is a fair price.
Price based on past earnings
DWS Group GmbH KGaA's earnings available for a low price, and how does
this compare to other companies in the same industry?
DWS Group GmbH KGaA's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
DWS Group GmbH KGaA's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
DWS Group GmbH KGaA's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
DWS Group GmbH KGaA
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
DWS Group GmbH KGaA's finances.
The net worth of a company is the difference between its assets and liabilities.
DWS Group GmbH KGaA is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
DWS Group GmbH KGaA's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
DWS Group GmbH KGaA's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 50.8x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Dr. Asoka Woehrmann is Chief Executive Officer and Member of Executive Board at DWS Group GmbH & Co. KGaA since October 25, 2018. He was a Member of Supervisory Board at DWS Group GmbH & Co. KGaA since 2018 until October 25, 2018. Dr. Woehrmann joined Deutsche Bank in 1998. Previously, Woehrmann served as Head of the Private Client business in Germany of the Private & Commercial Bank (PCB) of Deutsche Bank. Since 2015, Dr. Woehrmann has served as Head of Retail Banking at Deutsche Bank AG. Before joining PCB in 2015, he was the CIO of Deutsche Bank’s Asset and Wealth Management division. Prior to this, he served as Global CIO for Fixed Income, Equity, and Multi Asset, Global Head of Foreign Exchange, Head of Absolute Return Strategies, and Portfolio Manager for International Bonds. Asoka started his career as a portfolio manager in 1998. Before joining DWS, he was a graduate teacher at the Technical University in Vienna and at the University of Magdeburg. Dr. Woehrmann received a Ph.D. in Economics from Otto-von-Guericke University of Magdeburg and a M.Sc. in Economics from University of Bielefeld.
Insufficient data for Asoka to compare compensation growth.
Insufficient data for Asoka to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
DWS Group GmbH KGaA
management team in years:
The average tenure for the DWS Group GmbH KGaA management team is less than 2 years, this suggests a new team.
CEO & Member of Executive Board
CFO & Member of Executive Board
Nikolaus Von Tippelskirch
Member of Executive Board & Chief Control Officer
Member of Executive Board
Member of Executive Board & Co-Head of Investment Group
Member of Executive Board & Co-Head of Global Coverage Group
COO & Member of Executive Board
Head of EMEA Coverage & Member of Executive Board
Head of Investor Relations
Global Head of Media Relations
Board of Directors Tenure
Average tenure and age of the
DWS Group GmbH KGaA
board of directors in years:
The average tenure for the DWS Group GmbH KGaA board of directors is less than 3 years, this suggests a new board.
What Type Of Shareholder Owns DWS Group GmbH & Co. KGaA's (ETR:DWS)?
The big shareholder groups in DWS Group GmbH & Co. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … DWS Group GmbH KGaA has a market capitalization of €5.4b, so it's too big to fly under the radar.
Does The Data Make DWS Group GmbH & Co KGaA (ETR:DWS) An Attractive Investment?
Today I've chosen to put the spotlight on DWS Group GmbH & Co KGaA (ETR:DWS) due to its excellent fundamentals in more than one area. … report on DWS Group GmbH KGaA here … Undervalued with excellent balance sheet
Is DWS Group GmbH & Co KGaA's (ETR:DWS) PE Ratio A Signal To Buy For Investors?
DWS Group GmbH & Co KGaA (ETR:DWS) is currently trading at a trailing P/E of 10.2x, which is lower than the industry average of 17.7x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … Check out our latest analysis for DWS Group GmbH KGaA
Breaking Down DWS Group GmbH & Co KGaA's (ETR:DWS) Ownership Structure
In this article, I'm going to take a look at DWS Group GmbH & Co KGaA’s (ETR:DWS) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. … View our latest analysis for DWS Group GmbH KGaA
Should DWS Group GmbH & Co KGaA (XTRA:DWS) Be Your Next Stock Pick?
Today I've chosen to put the spotlight on DWS Group GmbH & Co KGaA (XTRA:DWS) due to its excellent fundamentals in more than one area. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on DWS Group GmbH KGaA here
Why DWS Group GmbH & Co KGaA's (ETR:DWS) Investor Composition Impacts Your Returns
View our latest analysis for DWS Group GmbH KGaA XTRA:DWS Ownership_summary Apr 19th 18 Institutional Ownership Institutional investors are one of the largest group of market participants and their buy-sell decisions on a company's stock can significantly impact prices, more so, when there are relatively small amounts of shares available on the market to trade. … General Public Ownership The general public holds a substantial 17.25% stake in DWS, making it a highly popular stock among retail investors. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.Next Steps: With a low level of institutional ownership, investors in DWS need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices.
Should You Be Tempted To Buy DWS Group GmbH & Co KGaA (ETR:DWS) At Its Current PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for DWS Price per share = €30.35 Earnings per share = €3.165 ∴ Price-Earnings Ratio = €30.35 ÷ €3.165 = 9.6x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you are inadvertently comparing lower risk firms with DWS, then DWS’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price. … In this case, DWS’s P/E would be lower since investors would also reward its peers’ higher growth with a higher price.
DWS Group GmbH & Co. KGaA provides asset management services in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company’s products and solutions cover equities, fixed income, cash, real estate, infrastructure, and private equity, as well as a range of sustainable investments. It serves clients in retail and institutional market segments. The company is based in Frankfurt am Main, Germany. DWS Group GmbH & Co. KGaA is a subsidiary of DB Beteiligungs-Holding GmbH.
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