| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 94.71 | 25089 |
| Intrinsic value (DCF) | 0.50 | 33 |
| Graham-Dodd Method | 0.34 | -10 |
| Graham Formula | 7.71 | 1951 |
Deutsche Effecten- und Wechsel-Beteiligungsgesellschaft AG (EFF.DE) is a Germany-based private equity and venture capital firm specializing in mid-to-late-stage investments in medium-sized companies. Founded in 1821 and headquartered in Jena, the firm focuses on high-growth sectors such as future finance, technology, optics, photonics, and sensor systems. With a strong regional emphasis on German-speaking countries (Germany, Austria, and Switzerland), EFF.DE typically invests between €1 million and €7 million per deal, primarily through equity stakes exceeding 25%. The firm adopts a long-term investment horizon of three to seven years, exiting via IPOs, trade sales, or buybacks. Operating in the asset management sector, EFF.DE leverages its deep industry expertise to identify and nurture innovative businesses, positioning itself as a key player in Europe's venture capital landscape. Despite its niche focus, the firm faces challenges from macroeconomic volatility and sector-specific risks.
Deutsche Effecten- und Wechsel-Beteiligungsgesellschaft AG presents a high-risk, high-reward investment profile. The firm’s focus on technology-driven sectors and German-speaking markets offers exposure to innovative growth companies, but its FY 2023 net loss of €1.62 million and negative EPS (-€0.097) highlight operational challenges. With a modest market cap of €5.36 million and significant total debt (€15.39 million), liquidity constraints may limit flexibility. The absence of dividends further reduces near-term appeal for income-focused investors. However, its low beta (0.689) suggests relative resilience to market volatility, and its venture capital model could yield outsized returns if portfolio companies succeed. Investors should weigh its niche expertise against financial instability and sector concentration risks.
Deutsche Effecten- und Wechsel-Beteiligungsgesellschaft AG competes in a crowded European private equity and venture capital market, where its regional focus and sector specialization (optics, photonics, and fintech) differentiate it from broader peers. The firm’s hands-on approach—taking significant equity stakes and actively guiding portfolio companies—provides a competitive edge in value creation. However, its small scale (€5.36 million market cap) limits its ability to compete with larger funds for high-profile deals. The firm’s reliance on German-speaking markets also exposes it to regional economic fluctuations, while its balance-sheet investment model contrasts with the fund-based structures of many competitors, potentially constraining capital deployment. EFF.DE’s long-standing presence (founded in 1821) lends credibility, but its recent financial underperformance (-€1.62 million net income in 2023) raises questions about execution. Competitors with deeper pockets or global reach may outperform in attracting top-tier startups.