It's been a great afternoon session for Deutsche Bank investors, who saw their shares rise 3.2% to a price of $30.35 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
The Market May Be Undervaluing Deutsche Bank's Earnings and Assets:
Deutsche Bank Aktiengesellschaft, a stock corporation, provides corporate and investment banking, private clients, and asset management products and services in Germany, the United Kingdom, rest of Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 15.92 and an average price to book (P/B) ratio of 1.78. In contrast, Deutsche Bank has a trailing 12 month P/E ratio of 15.7 and a P/B ratio of 0.74.
Deutsche Bank has moved 75.9% over the last year compared to 10.5% for the S&P 500 — a difference of 65.4%. Deutsche Bank has a 52 week high of $30.5 and a 52 week low of $13.7.
Exceptional EPS Growth but Negative Cash Flows:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $23,165 | $24,011 | $25,538 | $27,063 | $31,155 | $31,504 |
| Interest Income (M) | $11,458 | $6,405 | $5,655 | $10,466 | $27,424 | $8,884 |
| Net Margins | -23% | 3% | 10% | 21% | 21% | 0% |
| Net Income (M) | -$5,265 | $612 | $2,595 | $5,554 | $6,452 | -$145 |
| Diluted Shares (M) | 2,066 | 2,065 | 2,066 | 2,038 | 1,992 | 1,945 |
| Earnings Per Share | -$2.71 | $0.06 | $0.97 | $2.32 | $2.77 | -$0.38 |
| EPS Growth | n/a | 102.21% | 1516.67% | 139.18% | 19.4% | -113.72% |
| Free Cash Flow (M) | -$40,449 | $30,735 | -$2,952 | -$2,113 | $5,606 | -$25,075 |
