Donnelley Financial Solutions, Inc.

DB:1DN Stock Report

Market Cap: €1.7b

Donnelley Financial Solutions Valuation

Is 1DN 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 1DN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1DN (€58.5) is trading below our estimate of fair value (€64.9)

Significantly Below Fair Value: 1DN is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1DN?

Key metric: As 1DN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1DN. This is calculated by dividing 1DN's market cap by their current earnings.
What is 1DN's PE Ratio?
PE Ratio18.4x
EarningsUS$96.70m
Market CapUS$1.77b

Price to Earnings Ratio vs Peers

How does 1DN's PE Ratio compare to its peers?

The above table shows the PE ratio for 1DN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41.8x
DB1 Deutsche Börse
21.4x4.6%€39.5b
FTK flatexDEGIRO
12.4x8.4%€1.5b
T2G Tradegate Wertpapierhandelsbank
86.6xn/a€2.2b
HYQ Hypoport
47x30.4%€1.4b
1DN Donnelley Financial Solutions
18.4x7.3%€1.8b

Price-To-Earnings vs Peers: 1DN is good value based on its Price-To-Earnings Ratio (18.4x) compared to the peer average (41.8x).

Price to Earnings Ratio vs Industry

How does 1DN's PE Ratio compare vs other companies in the DE Capital Markets Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AR4 AURELIUS Equity Opportunities SE KGaA
3.9xn/aUS$406.78m
HXCK Ernst Russ
3.8x-18.2%US$206.28m
VG8 Varengold Bank
1.8xn/aUS$24.05m
XE8 Black Sea Property
0.7xn/aUS$7.68m
No more companies available in this PE range
1DN 18.4xIndustry Avg. 20.3xNo. of Companies6PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1DN is good value based on its Price-To-Earnings Ratio (18.4x) compared to the German Capital Markets industry average (20.3x).

Price to Earnings Ratio vs Fair Ratio

What is 1DN'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.

1DN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.4x
Fair PE Ratio13.8x

Price-To-Earnings vs Fair Ratio: 1DN is expensive based on its Price-To-Earnings Ratio (18.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.8x).

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 1DN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€58.50
€68.65
+17.3%
4.3%€72.31€64.07n/a4
Nov ’25€52.00
€71.25
+37.0%
2.7%€73.55€68.96n/a4
Oct ’25€58.50
€72.75
+24.4%
2.6%€74.14€69.50n/a4
Sep ’25€59.00
€72.75
+23.3%
2.6%€74.14€69.50n/a4
Aug ’25€62.00
€72.75
+17.3%
2.6%€74.14€69.50n/a4
Jul ’25€54.50
€65.72
+20.6%
3.7%€67.12€61.53n/a4
Jun ’25€54.00
€65.72
+21.7%
3.7%€67.12€61.53n/a4
May ’25€58.50
€65.72
+12.3%
3.7%€67.12€61.53n/a4
Apr ’25€55.50
€61.00
+9.9%
6.4%€66.54€55.45n/a4
Mar ’25€59.00
€61.00
+3.4%
6.4%€66.54€55.45n/a4
Feb ’25€57.00
€54.46
-4.5%
5.6%€59.24€51.04n/a4
Jan ’25€56.00
€54.32
-3.0%
7.1%€60.62€50.36n/a4
Dec ’24€53.50
€54.32
+1.5%
7.1%€60.62€50.36n/a4
Nov ’24€50.50
€54.65
+8.2%
7.8%€61.51€51.10€52.004
Oct ’24€50.00
€53.68
+7.4%
9.8%€61.48€47.30€58.504
Sep ’24€44.80
€49.81
+11.2%
5.4%€53.01€45.70€59.004
Aug ’24€42.40
€45.79
+8.0%
11.0%€52.08€40.41€62.004
Jul ’24€40.00
€45.82
+14.5%
13.3%€53.15€38.49€54.504
Jun ’24€40.80
€43.88
+7.6%
14.4%€52.66€38.13€54.003
May ’24€38.60
€45.59
+18.1%
14.4%€54.71€39.61€58.503
Apr ’24n/a
€45.59
0%
14.4%€54.71€39.61€55.503
Mar ’24n/a
€45.59
0%
14.4%€54.71€39.61€59.003
Feb ’24€42.60
€42.39
-0.5%
15.0%€50.87€35.61€57.003
Jan ’24€36.80
€42.39
+15.2%
15.0%€50.87€35.61€56.003
Dec ’23€36.00
€42.39
+17.7%
15.0%€50.87€35.61€53.503
Nov ’23€40.00
€43.82
+9.6%
14.5%€50.18€35.13€50.503

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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