Valuation of Borussia Dortmund

Matthias Feyh

Student thesis: Master thesis


This paper aims on finding the intrinsic value of Borussia Dortmund GmbH & CO. KGaA. It concludes with an investment recommendation for potential investors. Borussia Dortmund is a German football club being listed on a stock exchange. Notably, it is the only German football club, that is publicly listed. The company managed to overcome severe situations of financial distress and turmoil amongst the ranks of management. However, like a phoenix the company managed to recover and surpass several other competitors in terms of financial and sportive success. Parts of this success story are depicted and explained within this very report. Basing the valuation models on a fundamental analysis, comprising of a strategic and financial analysis yields, the paper shows forecasted financial statements for the company over a horizon of five years. The discounted cash flow as well as the economic value added value model both yield a value of 6.12 € per share. This differs from the actual value at the cut-off date November 22nd of 5.80 €. A sensitivity analysis and a scenario analysis tests the estimated intrinsic value of the company. Appropriately discounting future earnings, the company´s cost of capital must be estimated. This estimation is subject of a sensitivity analysis later in the report. This valuation thesis finds the company to be a financially sound investment. However, the industry of professional club football within Europe proofs to be a rocky road whilst making predictions. This is mainly due to market participants, e. g. fans, customers and clubs not basing their decisions on pure reasoning or economic thinking. Hence, potential investors must be aware of the uncertainty and noise within the industry.

EducationsMSc in Accounting, Strategy and Control, (Graduate Programme) Final Thesis
Publication date2017
Number of pages114