| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 2.20 | -76 |
| Graham Formula | 1.10 | -88 |
Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien (BVB.SW) is a leading German football club listed on the Swiss Exchange (SIX). Founded in 1909 and headquartered in Dortmund, Germany, the company operates a professional football squad under the SIGNAL IDUNA PARK brand. Beyond matchday operations, Borussia Dortmund generates revenue through diverse streams, including player transfers, TV marketing, advertising, merchandise sales, and hospitality services. The club also offers sports travel, event staffing, and travel agency services, alongside owning a stake in a medical rehabilitation center. As one of Europe's most storied football clubs, Borussia Dortmund competes in the Bundesliga and UEFA competitions, leveraging its strong fanbase and commercial partnerships. The company's financial performance is influenced by sporting success, broadcasting rights, and sponsorship deals, positioning it uniquely in the intersection of sports, media, and entertainment.
Borussia Dortmund presents a niche investment opportunity within the sports entertainment sector, combining brand equity with diversified revenue streams. The club's recent profitability (€44.3M net income in FY 2023) and positive operating cash flow (€47.2M) reflect operational resilience. However, its investment appeal is tempered by inherent volatility from sporting performance, with a beta of 1.19 indicating higher market sensitivity. The lack of dividends may deter income-focused investors, while reliance on player transfers (a high-risk/high-reward revenue stream) adds uncertainty. Valuation at €365M market cap appears reasonable relative to peers, but growth depends heavily on UEFA competition participation and commercial expansion. Regulatory risks in European football (e.g., Financial Fair Play) and wage inflation remain key challenges.
Borussia Dortmund competes in the elite European football landscape, where competitive advantage stems from sporting performance, brand strength, and commercial execution. The club's primary differentiation is its youth development program, which has produced world-class talent (e.g., Jude Bellingham, Erling Haaland), creating significant transfer market value. Dortmund's 81,000-capacity SIGNAL IDUNA PARK ensures matchday revenue superiority over most European peers, while its passionate fanbase drives merchandise sales. However, the club operates in a tier below 'superclubs' like Real Madrid or Manchester United in global commercial appeal. Financially, Dortmund's €509M revenue (2023) trails Europe's top clubs but exceeds most Bundesliga rivals except Bayern Munich. The company's lean debt profile (€38M) provides flexibility compared to leveraged peers. Key vulnerabilities include reliance on Champions League qualification and inability to compete with state-backed clubs' spending power. Strategic partnerships (e.g., Puma, 1&1) and data-driven player recruitment help mitigate these gaps. Long-term competitiveness hinges on sustaining top-tier sporting results while expanding international fan engagement and digital revenue streams.