As of June 10, 2025, flatexDEGIRO AG's estimated intrinsic value ranges from $8.13 to $39.91 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $39.91 | +72.9% |
| Discounted Cash Flow (5Y) | $29.51 | +27.8% |
| Dividend Discount Model (Multi-Stage) | $11.46 | -50.4% |
| Dividend Discount Model (Stable) | $12.60 | -45.4% |
| Earnings Power Value | $8.13 | -64.8% |
Is flatexDEGIRO AG (FTK.DE) undervalued or overvalued?
With the current market price at $23.08, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate flatexDEGIRO AG's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.15 | 1.82 |
| Cost of equity | 8.6% | 14.9% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 28.5% | 29.2% |
| Debt/Equity ratio | 1.75 | 1.75 |
| After-tax WACC | 5.4% | 7.7% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $30 | $4,392M | 84.9% |
| 10-Year Growth | $40 | $5,538M | 74.1% |
| 5-Year EBITDA | $18 | $3,146M | 78.9% |
| 10-Year EBITDA | $27 | $4,102M | 65.1% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $129M |
| Discount Rate (WACC) | 7.7% - 5.4% |
| Enterprise Value | $1,688M - $2,388M |
| Net Debt | $1,143M |
| Equity Value | $546M - $1,245M |
| Outstanding Shares | 110M |
| Fair Value | $5 - $11 |
| Selected Fair Value | $8.13 |
| Metric | Value |
|---|---|
| Market Capitalization | $2542M |
| Enterprise Value | $3684M |
| Trailing P/E | 22.79 |
| Forward P/E | 21.79 |
| Trailing EV/EBITDA | 10.90 |
| Current Dividend Yield | 17.31% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.75 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $11.97 |
| Discounted Cash Flow (5Y) | 25% | $7.38 |
| Dividend Discount Model (Multi-Stage) | 20% | $2.29 |
| Dividend Discount Model (Stable) | 15% | $1.89 |
| Earnings Power Value | 10% | $0.81 |
| Weighted Average | 100% | $24.34 |
Based on our comprehensive valuation analysis, flatexDEGIRO AG's weighted average intrinsic value is $24.34, which is approximately 5.5% above the current market price of $23.08.
Key investment considerations:
Given these factors, we believe flatexDEGIRO AG is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.