Risk factor
Considerable default risk
Profitability factor
Favourable analyst view
About
Deutsche Beteiligungs AG (DBAG) is a distinguished private equity firm, employing both direct investment and fund-of-funds strategies. Through its direct investments, DBAG specializes in providing various forms of capital—including expansion, growth, and bridge financing—for management buyouts (MBOs), management buy-ins (MBIs) for experienced executives, and add-on acquisitions within the middle market. It also supports corporate spin-offs, succession planning, and generational transitions in family-owned small and medium-sized enterprises (SMEs), as well as companies approaching an initial public offering (pre-IPO). As a fund-of-funds investor, DBAG allocates capital to other private equity funds. The firm explicitly excludes investments in start-up and early-stage ventures. DBAG demonstrates a strong preference for a diverse set of industries, including automotive suppliers, industrial manufacturing, mechanical and plant engineering, building materials, measurement and automation technology, specialty chemicals, support service providers, printing, media, broadband/telecommunications, IT services/software, healthcare, and packaging. Further areas of interest encompass manufacturers of industrial components or machinery for varied sectors, industrial support services, and logistics. While these are primary focuses, the firm has a proven history of successful investments across other sectors too. Geographically, DBAG primarily targets companies headquartered or possessing significant ties within the German Mittelstand, the DACH region (Germany, Austria, Switzerland), France, the Netherlands, the United States, and other European countries, particularly German-speaking nations. Its focus within emerging European markets extends to the Czech Republic, Hungary, Poland, and Slovakia. Typically, DBAG commits equity investments ranging from €10 million to €75 million, targeting companies with revenues between €30 million and €500 million, and enterprise values from €35 million to €300 million. However, the firm maintains flexibility to consider smaller enterprises, participate in larger transactions, or structure deals requiring up to €200 million in equity for opportunities exceeding the standard enterprise value range. Co-investment opportunities with other firms are also pursued. DBAG aims to secure either majority or minority ownership stakes in its portfolio companies. Common investment triggers include the spin-off of non-core activities from large corporations, divestitures from other financial investors, or the need for growth capital. The firm actively seeks representation on the advisory or supervisory boards of its portfolio companies, with a typical investment holding period of approximately eight years. Established in 1965, Deutsche Beteiligungs AG is headquartered in Frankfurt am Main, Germany, and maintains an additional office in Milan, Italy.
Company Valuation
Based on key historical and expected multiples, the stock is slightly overvalued relative to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBI
Target Price
The average target price of DBAN.DE is 37 and suggests 58% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incre