Is Deutsche Bank (XTRA:DBK) Pricing Reflect Its Recent Share Price Pullback?

If you are wondering whether Deutsche Bank’s share price still reflects fair value after its long run, you are not alone. That is exactly what this article aims to unpack. The stock last closed at €31.28, after a 6.1% decline over the past week and a 5.2% decline over the past month, while the 1 year return sits at 72.9% and the 3 year return is very large, around 3x. Recent attention on large European banks, including Deutsche Bank, has focused on how they are positioned within the wider financial system and how investors are currently pricing bank specific risks versus broader sector risks. This backdrop helps explain why the share price can move sharply over shorter periods, even when the longer term return profile looks very different. Our valuation checks give Deutsche Bank a 4/6 value score. Next we will look at how different valuation methods line up for the stock before finishing with a more rounded way to think about what that score really means for you.

Deutsche Bank delivered 72.9% returns over the last year. See how this stacks up to the rest of the Capital Markets industry.

Approach 1: Deutsche Bank Excess Returns Analysis

The Excess Returns model looks at how much profit a bank can earn on its equity above, or below, the return that shareholders require, then uses that gap to estimate a fair value per share.

For Deutsche Bank, the starting point is a Book Value of €41.32 per share and a Stable Book Value estimate of €39.65 per share, based on inputs from 8 analysts. The model uses a Stable EPS of €3.97 per share, sourced from weighted future Return on Equity estimates from 14 analysts, and an Average Return on Equity of 10.02%.

The required return for shareholders, or Cost of Equity, is set at €4.04 per share. That is slightly above the Stable EPS figure. This results in an Excess Return of €0.07 per share, effectively signalling that projected earnings are close to the required return.

Putting this together, the Excess Returns model produces an intrinsic value of €38.84 per share. Against the recent share price of €31.28, this implies the stock is 19.5% undervalued based on these inputs.

Result: UNDERVALUED

Our Excess Returns analysis suggests Deutsche Bank is undervalued by 19.5%. Track this in your watchlist or portfolio, or discover 237 more high quality undervalued stocks.

DBK Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Deutsche Bank.

Approach 2: Deutsche Bank Price vs Earnings

For a profitable company like Deutsche Bank, the P/E ratio is a useful yardstick because it links what you pay today to the earnings the bank is already generating. It is a simple way to see how much the market values each euro of profit.

What counts as a “normal” P/E depends on what investors expect from earnings and how they view risk. Higher expected growth and lower perceived risk usually support a higher multiple, while lower growth or higher risk tend to pull it down.

Deutsche Bank currently trades on a P/E of 9.65x. That sits below both the Capital Markets industry average of 14.12x and the peer average of 20.51x. Simply Wall St’s Fair Ratio for the stock is 25.22x, which is its proprietary estimate of where the P/E might sit after considering factors such as earnings growth, profit margins, industry, market cap and company specific risks.

The Fair Ratio is more tailored than a simple comparison with industry or peer averages because it adjusts for those fundamentals instead of assuming all banks should trade on the same multiple. Set against the current 9.65x P/E, the 25.22x Fair Ratio indicates that the shares appear undervalued on this metric.

Result: UNDERVALUED

XTRA:DBK P/E Ratio as at Feb 2026

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Upgrade Your Decision Making: Choose your Deutsche Bank Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which let you write a simple story for Deutsche Bank and connect it to the numbers you care about, such as fair value and expectations for future revenue, earnings and margins. A Narrative links what you believe about the bank to a financial forecast, and then to a fair value that you can compare with today’s share price to decide whether the stock looks attractive or expensive for you. On Simply Wall St’s Community page, used by millions of investors, Narratives are an easy tool where you can quickly adjust assumptions, see how your forecast changes and watch that flow through to a new fair value. Narratives also update automatically when fresh information like news or earnings is added, so your story and numbers stay in sync. For example, one Deutsche Bank Narrative might assume a higher fair value based on stronger profitability expectations, while another might point to a lower fair value if the author sees more muted earnings and a higher required return.

Do you think there’s more to the story for Deutsche Bank? Head over to our Community to see what others are saying!

XTRA:DBK 1-Year Stock Price Chart

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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