London, UK, 24 April 2013 Edison expands its European presence with coverage of Borussia Dortmund (BVB)
Edison Investment Research, a leading international investment research firm, announces the initiation of coverage of Borussia Dortmund, a major force in German and European football.
Edison has recently published a comprehensive report examining the investment merits of Borussia Dortmund, focusing on the company’s success in creating value in a sustainable business. In the report, Das Wunder von Dortmund, Richard Finch, Senior Analyst, argues that current market valuations do not reflect the long-term potential of powerful brand development, valuable media rights and sustainable positive cash flow, backed by freehold property, substantial subscription revenue, and hidden reserves from player investment. A more reasonable EV/EBITDA (before transfers) would be 5x (share price €3.70), as would a P/E of 7x (€4.30). Free cash flow yield of 7% would be justified by the sustainability of cash flow (€4.60); company finances are strong (net cash is in prospect for FY14e even before transfers). EV against resilient and growing revenue is only 1.0x prospective. This year’s likely step-change in pre-transfer EBITDA should be a catalyst for the underrated share price; we forecast a near-50% increase, even before lucrative rewards for success in its imminent Champions League semi-final against Real Madrid.
For the full report see: http://www.edisoninvestmentresearch.com/research/company/borussia-dortmund
The launch of coverage on Borussia Dortmund is part of a programme of research expansion in Europe. Edison provides detailed research coverage on more than 350 companies in Europe, North America and Australia. Its consumer research team provides a range of coverage across small-, mid- and large-cap companies. All published Edison reports are available to download free of charge from its website www.edisongroup.com.
About Edison Investment Research
Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support its capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Berlin, Sydney and Wellington. Edison is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities.
For more information please contact:
Richard Finch Edison Investment Research +44 (0)20 3077 5700 [email protected]
About Borussia Dortmund
Borussia Dortmund is one of Germany’s leading football clubs. Second only to Bayern Munich in terms of Bundesliga titles over the last 20 years, it was the first German club to win a European competition (the European Cup Winners’ Cup in 1966) and the Champions League in 1997. It is a Champions League semi-finalist this season, and second in the Bundesliga. The club’s well-known stadium (the Westfalenstadion, now formally the Signal Iduna Park) is the largest in Germany and has long enjoyed the highest average attendance (c 80,000) in the country (and last year in Europe).