Borussia Dortmund

DE: BVB

€837.2m market cap

€9.1 last close

The group operates Borussia Dortmund, a leading German football club, Bundesliga runners-up in 2018/19, DFB Cup winners in 2016/17 and competing in the coming season’s UEFA Champions League (round of 16 participants in 2018/19).

Investment summary

Pushing champions Bayern Munich to the wire can only have enhanced Borussia Dortmund’s (BVB) fabled ‘Echte Liebe’ brand. Three prominent player signings immediately post-season mark its resolve to improve even on a campaign that clearly exceeded expectations with a new head coach and a developing squad. That player spend (estimated at c €75m) is almost covered by the proceeds from January’s bumper transfer of Pulisic, while a new independent squad valuation, highlighting Jadon Sancho (19) as the most valuable Bundesliga player (€100m), confirms BVB’s substantial hidden reserves (c €300m, according to www.transfermarkt.de). We are broadly maintaining forecasts for this year and next with renewed confidence.

Y/E Jun
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 405.7 74.1 61.1 56.4 16.1 7.1
2018A 536.0 126.6 111.2 102.7 8.9 5.1
2019E 500.0 105.0 93.0 86.0 10.6 7.3
2020E 513.0 110.0 98.0 90.5 10.1 6.4
Last updated on 25/07/2019
Industry outlook

Unsustainable spend on wages and transfers is increasingly being penalised by UEFA Financial Fair Play requirements. A ‘break-even requirement’ obliges clubs to spend no more than they generate over a rolling three-year period. Sanctions vary from a warning to a ban from UEFA competition, fines and a cap on wages and squad size.

Last updated on 25/07/2019
Sector
Consumer
Share price graph
Balance sheet
Forecast net cash (€m) 28
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 7.8 4.6 45.6
Relative* 6.6 3.9 48.2
52-week high/low €10.1/€6.0
*% relative to local index
Key management
Thomas Treß CFO

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