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1. Company Snapshot

1.a. Company Description

Deutsche Börse AG operates as an exchange organization in Europe, the United States, and the Asia-Pacific.The company operates through seven segments: Eurex (Financial Derivatives), EEX (Commodities), 360T (Foreign Exchange), Xetra (Cash Equities), Clearstream (Post-Trading), IFS (Investment Fund Services), and Qontigo (index and analytics business).The company engages in the electronic trading of derivatives, electricity and gas products, emission rights, and foreign exchange; operating of Eurex Repo over the counter (OTC) trading platform and electronic clearing architecture; and operating as a central counterparty for on-and-off exchange derivatives, repo transactions, and OTC and exchange-traded derivatives.


It also operates in the cash market through Xetra, Börse Frankfurt, and Tradegate trading venues; operates as a central counterparty for equities and bonds; and provides listing services.In addition, the company offers custody and settlement services for securities; investment fund services; global securities financing services; and collateral management, as well as secured money, market transaction, and repos and securities lending transaction services.Further, it develops and markets indices, as well as portfolio management and risk analysis software; markets licenses for trading and market signals; provides technology and reporting solutions for external customers; and offers link-up of trading participants.


Deutsche Börse AG was founded in 1585 and is headquartered in Eschborn, Germany.

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1.b. Last Insights on DB1

Deutsche Börse AG's recent performance was negatively impacted by heightened sensitivity to institutional investor sentiment, as evidenced by a 3.6% decline in their holdings last week. The company's stock price is heavily influenced by institutional ownership, making it vulnerable to fluctuations in investor confidence. Furthermore, the Basic Materials sector, in which Deutsche Börse operates, is at risk of issuing profit warnings, as highlighted in recent market talks. Additionally, the company's exposure to the Auto and Transport sector, which has faced challenges with Tesla and FedEx, may also be a concern.

1.c. Company Highlights

2. Deutsche Börse's Q3 Results: A Resilient Performance

Deutsche Börse Group reported a solid financial performance in Q3 2025, with net revenue growth of 7% to EUR 1.44 billion, driven by broad-based momentum across its business units. The company's EBITDA margin without treasury results improved significantly to 53%, up from 50% in the prior year. However, EPS came out at EUR 2.77, below analyst estimates of EUR 5.51. The revenue growth was driven by strong contributions from Trading & Clearing, Fund Services, and Security Services, with net revenue growth of 21%, 15%, and 13%, respectively. As Jens Schulte, CFO, noted, "Our year-to-date results remain firmly in line with our full year expectations, with a 9% net revenue growth without treasury results."

Publication Date: Oct -29

📋 Highlights
  • Strong Revenue Growth:: 5 out of 8 business units achieved double-digit net revenue growth, with Software Solutions up 10% and Domos acquisition driving strategic expansion.
  • Trading & Clearing Performance:: Cash Equities revenue surged 21%, Financial Derivatives grew 11%, and Commodities rose 10%, reflecting diversified strength.
  • Margin Expansion:: EBITDA margin without treasury results increased to 53% (vs. 50% prior year), driven by 16% EBITDA growth and disciplined cost control (3% operating expense rise).
  • Recurring Revenue Growth:: Annual recurring revenue hit €632M, up 18% YoY at constant currency, underpinning long-term stability.

Segment Performance

The company's Investment Measurement Solutions segment saw a 10% increase in net revenue, driven by the Software Solutions business. Trading & Clearing delivered strong results, with Cash Equities and Commodities experiencing net revenue growth of 21% and 10%, respectively. Financial Derivatives also performed well, with an 11% net revenue growth. The Fund Services and Security Services businesses continued to deliver excellent results, with net revenue growth of 15% and 13%, respectively.

Valuation and Outlook

Deutsche Börse's current valuation multiples are relatively attractive, with a P/E Ratio of 20.64 and an EV/EBITDA multiple of 11.38. The company's ROE stands at 18.67%, indicating a strong return on equity. With a confirmed guidance for 2025 and a comfortable outlook for long-term growth beyond 2026, the company is well-positioned to deliver sustained growth. The excess cash position is expected to be around EUR 1.5 billion to EUR 2 billion by year-end, with a share buyback program in place to complete EUR 500 million.

Growth Prospects

The company's growth prospects are driven by its strategic investments in AI, data, and SimCorp. The OTC derivative clearing business is on track, with an increase in accounts and expected growth in activity next year. Analysts estimate next year's revenue growth at 4.6%, indicating a moderate pace of expansion. With a strong track record of delivering results and a solid financial position, Deutsche Börse is well-placed to capitalize on emerging opportunities.

3. NewsRoom

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Financial Services Roundup: Market Talk

Nov -28

Source:

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Deutsche Boerse in Talks to Buy Fund-Tech Platform Allfunds in $6 Billion Deal

Nov -28

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SEC must not let crypto companies 'bypass' rules, stock exchanges say

Nov -26

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JPMorgan Analysts Flip Bullish on Circle, Citing Faster Stablecoin Growth

Nov -13

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Antitrust Probe Could Be a Game Changer for Deutsche Börse (XTRA:DB1)

Nov -09

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Deutsche Börse (XTRA:DB1): Assessing Valuation After Q3 Revenue and Net Income Growth

Nov -09

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Euronext CEO on Pan-European Exchange, Buyback

Nov -07

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Stocks in Focus Globally: Nissan, ArcelorMittal, AstraZeneca

Nov -06

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.93%)

6. Segments

Trading & Clearing

Expected Growth: 6.3%

Deutsche Börse AG's trading and clearing services growth is driven by its market share gains, increasing demand for derivatives trading, and a growing need for risk management solutions.

Securities Services

Expected Growth: 6.5%

Increasing demand for risk management and trading efficiency drives growth in clearing services, with Deutsche Börse AG's strong market position and innovative offerings supporting its market share.

Investment Management Solutions

Expected Growth: 8.4%

Deutsche Börse AG’s investment management solutions drive growth, fueled by increasing demand for diversified investment portfolios and rising adoption of digital investment platforms.

Fund Services

Expected Growth: 7.6%

Growing demand for investment fund administration drives Deutsche Börse AG's Fund Services segment, fueled by increasing complexity in fund management and regulatory pressures.

7. Detailed Products

Xetra

Xetra is a fully electronic trading system that provides a platform for trading in shares, exchange-traded funds (ETFs), and exchange-traded commodities (ETCs).

Eurex

Eurex is a leading international derivatives exchange that offers a wide range of derivatives products, including futures and options on indices, commodities, and interest rates.

Eurex Clearing

Eurex Clearing is a central counterparty (CCP) that provides clearing services for derivatives and securities transactions.

Frankfurt Stock Exchange

The Frankfurt Stock Exchange is one of the largest stock exchanges in Europe, providing a platform for trading in shares, bonds, and other securities.

STOXX

STOXX is a leading provider of indices and index-based products, including the EURO STOXX 50 and STOXX Europe 600.

Deutsche Börse Market Data + Services

Deutsche Börse Market Data + Services provides real-time and historical market data, as well as analytics and other services, to financial institutions and investors.

8. Deutsche Börse AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Deutsche Börse AG is medium, as there are alternative platforms for trading and investment, but the company's strong brand and established customer base mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low, as Deutsche Börse AG is a dominant player in the German stock exchange market, and customers have limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium, as Deutsche Börse AG relies on a few key suppliers for its operations, but the company's size and market position give it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low, as entering the stock exchange market requires significant capital and regulatory approvals, making it difficult for new competitors to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high, as Deutsche Börse AG operates in a highly competitive market with several established players, and the company must continually innovate and improve its services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.31%
Debt Cost 3.95%
Equity Weight 52.69%
Equity Cost 6.76%
WACC 5.43%
Leverage 89.79%

11. Quality Control: Deutsche Börse AG passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BBVA

A-Score: 7.8/10

Value: 7.1

Growth: 9.2

Quality: 7.0

Yield: 8.1

Momentum: 9.5

Volatility: 6.0

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Crédit Agricole

A-Score: 7.5/10

Value: 8.4

Growth: 3.7

Quality: 6.9

Yield: 10.0

Momentum: 7.5

Volatility: 8.3

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Erste Bank

A-Score: 6.8/10

Value: 6.4

Growth: 4.6

Quality: 6.2

Yield: 7.5

Momentum: 9.5

Volatility: 6.3

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Swiss Re

A-Score: 6.6/10

Value: 4.2

Growth: 3.0

Quality: 7.6

Yield: 8.1

Momentum: 8.0

Volatility: 9.0

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Deutsche Börse

A-Score: 6.4/10

Value: 4.2

Growth: 7.9

Quality: 7.3

Yield: 3.1

Momentum: 6.0

Volatility: 9.7

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LSEG

A-Score: 4.6/10

Value: 2.9

Growth: 7.9

Quality: 5.5

Yield: 1.9

Momentum: 1.5

Volatility: 7.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

222.3$

Current Price

222.3$

Potential

-0.00%

Expected Cash-Flows