Deutsche Bank AG has a rating of underperform and a target price of $12.34, which is -11.26 away from its current price of $10.95 per share. Based in Frankfurt am Main, Germany, the large-cap Finance company has 84,930 full time employees. Deutsche Bank AG has offered a 2.8% dividend yield over the last 12 months.
Deutsche Bank AG has a trailing twelve month P/E ratio of 4.1, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of 2.37, the company has a forward P/E ratio of 4.6.
The average compound growth rate of the company's historical and projected earnings per share is 17.0%. On this basis, the company's PEG ratio is 0.25. However, this growth rate is probably not sustainable. In its place we will use the broader market's estimated 5-year EPS growth rate of 14.0%, which gives us a PEG ratio of 0.3. Even with this more conservative assumption on EPS growth, the PEG ratio suggests that Deutsche Bank AG shares are underpriced.
Furthermore, the market is potentially undervaluing Deutsche Bank AG in terms of its book value because its P/B ratio is 0.3. In comparison, the sector average P/B ratio is 1.57. The company's shares are currently -19.9% below their Graham number, indicating that its shares have a margin of safety.
If analysts are giving the the company a mediocre rating despite its low valuation point, it could be related to the company's disappointing cash flows. Furthermore, Deutsche Bank AG has poor margins as you can see in the financial summary below.
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $22,948 | $23,891 | $25,303 | $26,656 |
| Revenue Growth | n/a | 4.11% | 5.91% | 5.35% |
| Net Margins | -23.49% | 2.02% | 9.35% | 20.73% |
| Net Margins Growth | n/a | 108.6% | 362.87% | 121.71% |
| Earnings Per Share | -$2.71 | $0.06 | $0.93 | $2.68 |
| EPS Growth | n/a | 102.21% | 1450.0% | 188.17% |
| Diluted Shares (MM) | 2,110 | 2,170 | 2,143 | 2,038 |
| Free Cash Flow (MM) | -$40,776 | $30,224 | -$3,502 | -$2,450 |
| FCF Growth | n/a | 174.12% | -111.59% | 30.04% |
| Capital Expenditures (MM) | -$327 | -$512 | -$550 | -$337 |
| LT Debt to Equity | 2.52 | 2.46 | 2.23 | 1.94 |
