Borussia Dortmund (BVB): Another brick in the yellow wall
The 2019/20 season was typically successful from a sporting perspective, which reaffirmed Borussia Dortmund's position as one of the leading football teams in Germany and Europe.
Edison Investment Research Limited Borussia Dortmund (BVB): Another brick in the yellow wall
London, UK, 15 October 2020 Borussia Dortmund (BVB): Another brick in the yellow wall The 2019/20 season was typically successful from a sporting perspective, which reaffirmed Borussia Dortmund's position as one of the leading football teams in Germany and Europe. The coming year is likely to be more challenging financially due to the operating restrictions necessitated by COVID-19, but the company is well-placed to deliver a strong recovery in earnings if restrictions ease, albeit visibility on these is limited. The valuation reflects the uncertain outlook as it is trading at a significant (166%) discount to our sum-of the-parts valuation, broadly in-line with historic sales multiples, and at a discount to its peers.
The share price has been weak since the outbreak of COVID-19. Our asset-backed valuation of €13.03, which takes into account unrealised value in the playing squad and brand, points to upside of 166% to the current share price. The share price attributes a lower value to the brand and the playing squad, which likely reflects the uncertain outlook for revenue and profitability given the high level of operational leverage. The EV/sales multiple of 1.4x is in line with the long-run average, and at a discount to its peers.
Subscribe to Edison's content to receive reports by email. All reports published by Edison are free-to-access and available on the website.
About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Russell Pointon, +44 (0)20 3077 5700 Neil Shah, +44 (0)20 3077 5715
Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group- Twitter www.twitter.com/Edison_Inv_Res
Dissemination of a CORPORATE NEWS, transmitted by EQS Group. |
End of Announcement - EQS News Service
1140926 15-Oct-2020