Discover Financial Services

DB:DC7 Stock Report

Market Cap: €43.1b

Discover Financial Services Valuation

Is DC7 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 DC7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€254.76
Fair Value
33.1% undervalued intrinsic discount
13
Number of Analysts

Below Fair Value: DC7 (€170.46) is trading below our estimate of fair value (€254.76)

Significantly Below Fair Value: DC7 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DC7?

Key metric: As DC7 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DC7. This is calculated by dividing DC7's market cap by their current earnings.
What is DC7's PE Ratio?
PE Ratio12.1x
EarningsUS$3.53b
Market CapUS$44.18b

Price to Earnings Ratio vs Peers

How does DC7's PE Ratio compare to its peers?

The above table shows the PE ratio for DC7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.5x
DBK Deutsche Bank
8.5x12.7%€33.2b
DB1 Deutsche Börse
22.4x5.3%€41.4b
OT8 Eleving Group
9.6x29.7%€187.5m
DWS DWS Group GmbH KGaA
13.6x12.9%€8.1b
DC7 Discover Financial Services
12.1x1.0%€44.2b

Price-To-Earnings vs Peers: DC7 is good value based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (13.5x).

Price to Earnings Ratio vs Industry

How does DC7's PE Ratio compare vs other companies in the European Consumer Finance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
DC7 12.1xIndustry Avg. 9.6xNo. of Companies5PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DC7 is expensive based on its Price-To-Earnings Ratio (12.1x) compared to the European Consumer Finance industry average (9.6x).

Price to Earnings Ratio vs Fair Ratio

What is DC7'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.

DC7 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.1x
Fair PE Ratio18.8x

Price-To-Earnings vs Fair Ratio: DC7 is good value based on its Price-To-Earnings Ratio (12.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).

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 DC7 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€170.46
€183.81
+7.8%
13.7%€225.87€145.41n/a13
Jan ’26€165.94
€168.00
+1.2%
15.6%€222.93€131.64n/a12
Dec ’25€171.90
€160.75
-6.5%
13.5%€200.45€128.86n/a12
Nov ’25€135.92
€145.12
+6.8%
7.3%€159.99€124.85n/a12
Oct ’25€125.14
€136.64
+9.2%
7.1%€153.58€121.96n/a12
Sep ’25€123.56
€139.06
+12.5%
6.8%€157.25€124.88n/a12
Aug ’25€132.46
€139.06
+5.0%
6.8%€157.25€124.88n/a12
Jul ’25€121.02
€126.97
+4.9%
7.5%€140.90€107.31n/a13
Jun ’25€111.20
€125.28
+12.7%
7.5%€138.94€105.81n/a13
May ’25€118.82
€127.45
+7.3%
7.6%€141.74€107.95n/a13
Apr ’25€117.50
€116.67
-0.7%
12.7%€133.78€95.95n/a13
Mar ’25€111.20
€116.33
+4.6%
14.1%€155.03€95.97n/a16
Feb ’25€97.18
€107.60
+10.7%
8.8%€129.72€95.68n/a21
Jan ’25€101.00
€102.65
+1.6%
14.4%€138.99€80.47€165.9421
Dec ’24€84.80
€97.10
+14.5%
15.7%€139.66€80.85€171.9021
Nov ’24€77.18
€99.75
+29.2%
15.8%€143.62€85.04€135.9220
Oct ’24€81.22
€108.69
+33.8%
13.6%€143.78€85.13€125.1418
Sep ’24€82.70
€107.05
+29.4%
13.6%€140.65€83.28€123.5618
Aug ’24€95.38
€107.94
+13.2%
10.8%€131.24€88.99€132.4617
Jul ’24€107.80
€110.06
+2.1%
9.7%€133.77€92.54€121.0216
Jun ’24€95.62
€110.44
+15.5%
9.3%€136.10€94.15€111.2017
May ’24€91.82
€107.21
+16.8%
9.1%€132.90€91.94€118.8218
Apr ’24€89.48
€109.45
+22.3%
8.4%€134.60€94.96€117.5018
Mar ’24€105.10
€110.21
+4.9%
7.9%€136.17€97.00€111.2018
Feb ’24€106.48
€107.68
+1.1%
8.6%€134.17€89.14€97.1818
Jan ’24€90.46
€113.89
+25.9%
9.6%€137.74€91.51€101.0018
Analyst Price Target
Consensus Narrative from 13 Analysts
€190.53
Fair Value
10.5% undervalued intrinsic discount
13
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/10 05:35
End of Day Share Price 2025/01/10 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

Discover Financial Services is covered by 52 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
Stephen BiggarArgus Research Company
Terry MaBarclays
Bruce HartingBarclays