Deutsche Real Estate Valuation

Q: What is the Fair Price of DRE2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DRE2 (€7.6) is trading below our estimate of [[fair value]] (€36.4)

Is DRE2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DRE2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DRE2 (€7.6) is trading below our estimate of fair value (€36.4)

Significantly Below Fair Value: DRE2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DRE2?

Key metric: As DRE2 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DRE2. This is calculated by dividing DRE2's market cap by their current revenue.
What is DRE2's PS Ratio?
PS Ratio	4.5x
Sales	€34.56m
Market Cap	€156.42m

DRE2 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.7x
Enterprise Value/EBITDA	8.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does DRE2's PS Ratio compare to its peers?

The above table shows the PS ratio for DRE2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	9.5x
STG STINAG Stuttgart Invest	6.5x	3.2%	€184.6m
DEF DEFAMA Deutsche Fachmarkt	5x	8.0%	€140.2m
AGR AGROB Immobilien	14.1x	n/a	€173.6m
DWB Dinkelacker	12.2x	n/a	€299.9m
DRE2 Deutsche Real Estate	4.5x	n/a	€156.4m

Price-To-Sales vs Peers: DRE2 is good value based on its Price-To-Sales Ratio (4.5x) compared to the peer average (9.5x).

Price to Sales Ratio vs Industry

How does DRE2's PS Ratio compare vs other companies in the DE Real Estate Industry?

10 Companies	Price / Sales	Estimated Growth	Market Cap
DIC Branicks Group	0.7x	-21.8%	US$193.71m
DMRE DEMIRE Deutsche Mittelstand Real Estate	0.5x	-42.0%	US$85.55m
ADJ Adler Group	0.1x	n/a	US$48.74m
NUVA Noratis	0.3x	16.6%	US$16.01m

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: DRE2 is expensive based on its Price-To-Sales Ratio (4.5x) compared to the German Real Estate industry average (3.6x).

Price to Sales Ratio vs Fair Ratio

What is DRE2's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DRE2 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.5x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate DRE2's Price-To-Sales 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?

Analyst Forecast: Insufficient data to show price forecast.

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