| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 100.13 | 143 |
| Intrinsic value (DCF) | 23.82 | -42 |
| Graham-Dodd Method | 9.63 | -77 |
| Graham Formula | 25.94 | -37 |
flatexDEGIRO AG (FTK.DE) is a leading European online brokerage and financial technology services provider headquartered in Frankfurt, Germany. Operating through its Financial Services (FIN) and Technologies (TECH) segments, the company offers a comprehensive suite of digital brokerage solutions, including B2C online trading, B2B white-label banking, securities settlement, and custody account management. Its TECH segment specializes in developing proprietary IT infrastructure, trading platforms, and banking software, positioning flatexDEGIRO as a fintech innovator. With a market cap exceeding €2.66 billion, the company serves retail and institutional investors across Europe, leveraging its 2020 merger with Dutch broker DEGIRO to expand its pan-European footprint. As a low-cost disruptor in the capital markets sector, flatexDEGIRO combines banking and brokerage services with advanced technology solutions, catering to the growing demand for digital-first investment platforms in the post-pandemic financial landscape.
flatexDEGIRO presents an attractive growth investment in the European fintech space, with strong fundamentals including €462.5M revenue and €111.5M net income (FY 2024). The company benefits from structural tailwinds in digital brokerage adoption, a capital-light model evidenced by €3.31B cash reserves versus minimal €160M debt, and positive operating cash flow of €168.9M. However, its beta of 1.243 indicates higher volatility than the market, reflecting sensitivity to trading activity fluctuations. The modest €0.04 dividend suggests a growth-focused capital allocation strategy. Key risks include intensifying competition in EU online brokerage and potential regulatory changes affecting payment for order flow models. The stock appeals to investors seeking exposure to Europe's digital wealth management transformation at reasonable valuations (P/E ~24x).
flatexDEGIRO maintains competitive advantage through its dual focus as both a brokerage operator and fintech solutions provider—a rare combination in Europe. Its proprietary technology stack allows for industry-leading low-cost execution (€0.01 per US equity trade), while the DEGIRO acquisition provided instant scale with 2M+ clients. The company's vertically integrated model—combining banking license, custody infrastructure, and trading platform—creates significant barriers to entry. Unlike US discount brokers reliant on payment for order flow (banned in EU), flatexDEGIRO's revenue mix is diversified across commissions, interest income, and B2B tech solutions. However, it faces pressure from neo-brokers like Trade Republic in Germany and must continually invest in UX/UI to retain digitally-native investors. Its B2B white-label banking solutions differentiate it from pure-play brokers, creating enterprise revenue streams. The main challenge lies in balancing growth investments with profitability as it expands beyond DACH into Southern Europe against well-capitalized incumbents like ING and Comdirect.