DWS Group DWS.DE
What does DWS Group do?
DWS Group is a globally active asset manager headquartered in Frankfurt am Main and a company majority-owned by the Deutsche Bank group. Its offering comprises investment solutions in equities, bonds, and liquidity, as well as in alternative asset classes such as real estate, infrastructure, and private equity. It also includes sustainable investment products and passive strategies, including exchange-traded funds.
The company earns revenue mainly from management fees based on assets under management. Performance-based fees and transaction fees are also generated. Clients are private investors, who are reached mainly through banks and distribution partners, and institutional investors such as insurers, pension funds, and public-sector institutions. In terms of competition, DWS faces large international asset managers, some of which have significantly larger passive platforms. Its strengths are its strong position in German-speaking countries, its broad product range, and access to its parent company's distribution network.
Score profile
Rank vs. Asset Management (35 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, DWS Group ranks in the middle in the group Asset Management (5.0/10). On growth, the company ranks below average in the group Asset Management (4.0/10). On valuation (higher = cheaper), the stock ranks above average in the group Asset Management (6.5/10). On financial strength, DWS Group ranks below average in the group Asset Management (3.4/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 12.4x | 12.0x | better than 49 % |
| Trailing P/E | 13.4x | 14.2x | better than 63 % |
| PEG ratio | 1.5x | 1.1x | better than 26 % |
| EV/EBITDA | 6.9x | 11.7x | better than 83 % |
| Price/sales | 2.9x | 3.5x | better than 62 % |
| Price/book | 1.8x | 3.2x | better than 83 % |
| Revenue growth | 4.0% | 9.8% | better than 33 % |
| Earnings growth | 4.5% | 6.2% | better than 47 % |
| Gross margin | 49.8% | 49.8% | better than 50 % |
| Operating margin | 41.5% | 33.5% | better than 81 % |
| Net margin | 21.8% | 21.0% | better than 54 % |
| Return on equity | 0.0% | 16.2% | better than 13 % |
| Debt/equity | 2.2% | 42.6% | better than 87 % |
| Free cash flow yield | 0.0% | 3.6% | better than 25 % |
| Dividend yield | 4.4% | 2.8% | – |
| Payout ratio | 58.9% | 41.6% | – |
| Beta | 1.19 | 1.20 | – |
Valuation: what is DWS Group worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give DWS Group a model range of 66.14 EUR to 118.61 EUR per share.
15 analysts, average rating “Buy”, average price target 71.33 EUR (+4.7%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- The level of assets under management largely determines ongoing management fees and therefore the bulk of revenue.
- Net inflows and capital market performance influence assets under management and thus revenue and earnings.
- Cost discipline and the share of higher-margin products, such as alternative investments and active strategies, shape profitability.
Risks
- Market declines directly reduce assets under management and weigh on fee income, while costs are only partly flexible.
- Margin pressure from low-cost passive products and competition may reduce fee rates over the long term.
- Regulatory requirements, for example on sustainability claims, as well as legal and reputational risks can cause substantial costs and loss of trust.
What to look for with DWS Group
Net flows relative to assets under management and the cost/income ratio are informative, as they show organic growth and the efficiency of the fee business.