Introducing the “Boss Score” part 3 – First test with DAX 30 and own portfolio
As already announced in the previous post, let’s have a look what results we get for the German DAX companies, sorted by the Trailing 10 year “boss score”:
|FRESENIUS MEDICAL CARE AG &||53.15||28.75||0.30|
|DEUTSCHE BOERSE AG||39.51||17.52||-0.07|
|BAYERISCHE MOTOREN WERKE AG||62.17||43.42||-0.10|
|DEUTSCHE POST AG-REG||13.02||9.45||-0.15|
|FRESENIUS SE & CO KGAA||75.10||37.28||-0.41|
|HENKEL AG & CO KGAA VORZUG||52.98||20.76||-0.60|
|MUENCHENER RUECKVER AG-REG||102.85||136.28||-0.71|
|DAIMLER AG-REGISTERED SHARES||37.85||38.81||-0.75|
|DEUTSCHE BANK AG-REGISTERED||29.08||59.58||-0.81|
|DEUTSCHE TELEKOM AG-REG||8.75||8.13||-1.00|
|INFINEON TECHNOLOGIES AG||6.33||3.15||-1.17|
It is interesting to see that only 7 companies are above 0, which would indicate that they are undervalued.
Not surprisingly, financials including Insurers look relatively ugly. Also I am not surprised that we don’t see really great scores. Everything below 0.5 is not really interesting.
To a certzain extent surprising, Henkel and Beiersdorf are not performing really well. For Beiersdorf this has to do with a big drop in shareholder’s equity from 2003 to 2004 which creates volatility plus the fact that market value is already 4 times book value.
Also Henkel has a much more volatile equity positions than earnings would indicate which increases volatility in the model. This might have to do with FX effects but combined with the relatively high valuation it is neither boring nor sexy.
Just as a comparison, how are the scores for some of my portfolio companies ?
|Name||Price||Booc Value||10Y B-Score|
|TONNELLERIE FRANCOIS FRERES||30.05||29.46||1.88|
|AS CREATION TAPETEN||25.19||33.71||1.79|
|BUZZI UNICEM SPA-RSP||3.38||15.47||1.37|
|HORNBACH BAUMARKT AG||24.93||25.54||1.16|
As one can see, for some of the stocks, the “Boss Scores” are much much higher.
At the moment I am building up a database and will then post from time to time interesting “Boss” stocks. But remeber: This is only one specific way to look at the stock and should be used as starting point only.
(More to follow)