3Anno·

Hi community, I need your opinion:

Yesterday I came across the share of the CFD broker XTB. I had the company already in mind, because it is currently very strongly represented also in terms of advertising (among others with @Flo_Pharell , @DividendenHai).

The share seems drastically undervalued compared to other financial companies, or am I missing something?

Currently, XTB is valued at only 2x turnover. For comparison: With listed brokers like e.g. $FTK (+1,52%) the multiple is about 10 (for new brokers, of course, immensely higher).

For CFD brokers, the multiples are somewhat lower (somewhere between 4-7, see e.g. IG Group), but a turnover multiple of 2 still seems extremely low to me.

What do you think?

5 Commenti

MarsEquities@CircusClown

3Anno

I don't know the company but first of all: If you want to make a relative valuation and use a revenue multiple, something can easily look cheap if you don't compare growth, op. margin etc. as well. But due to the legal dubiousness of the CFD business model I am out of it anyway.

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Christian@christian

3Anno

@ClermitInvest Fair Point! Margin is also strong with about 50% imho. With the dubiousness of the business model, you are of course right!

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Magnus & Sören von Rainbow Stocks@rainbow_stocks

3Anno

So I think the current market capitalization is now around 1.5-1.6 billion according to yahoo finance, marketwatch, Traderfox. Maybe there is the discrepancy here? BG Magnus

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Christian@christian

3Anno

@rainbow_stocks there are the values in PLN. 1.6b PLN = 350m €

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Magnus & Sören von Rainbow Stocks@rainbow_stocks

3Anno

@christian sorry overlooked. Possibly you have then overlooked nothing ^^

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