What Are Analysts Saying About Deutsche Pfandbriefbank AG’s (ETR:PBB) Future?
In December 2018, Deutsche Pfandbriefbank AG (ETR:PBB) released its latest earnings announcement, which showed that the company faced a minor headwind with earnings deteriorating from €182m to €179m, a change of -1.6%. Below, I’ve laid out key numbers on how market analysts predict Deutsche Pfandbriefbank’s earnings growth trajectory over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Deutsche Pfandbriefbank
Analysts’ expectations for next year seems pessimistic, with earnings decreasing by a double-digit -12%. Over the medium term, earnings should continue to be below today’s level, with a decline of -19% in 2021, eventually reaching €145m in 2022.
Although it’s informative understanding the growth rate each year relative to today’s figure, it may be more valuable to gauge the rate at which the company is rising or falling on average every year. The pro of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Deutsche Pfandbriefbank’s earnings trajectory over time, be more volatile. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -12%. This means, we can assume Deutsche Pfandbriefbank will chip away at a rate of -12% every year for the next few years.
Next Steps:
For Deutsche Pfandbriefbank, I’ve compiled three essential factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is PBB worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PBB is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PBB? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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