Deutsche Bank’s stock (NYSE: DB) has lost 7% YTD, as compared to the 15% rise in the S&P500 over the same period. Further, it is currently trading at $11 per share, which is 17% below its fair value of $13 – Trefis’ estimate for Deutsche Bank’s valuation.
Interestingly, Deutsche Bank stock had a Sharpe Ratio of almost zero since early 2017, which is lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.27 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
Login if you have purchased