Zalando (ZAL.DE)
Consumer · Xetra · Europe
Fundamentals
Valuation and ratings
Zalando trades at €27.97, which is 39% above the €16.94 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 45 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 61.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Zalando
Zalando SE operates an online platform for fashion and lifestyle products in Germany and internationally. The company operates through Business-to-Business and Business-to-Consumer segments. It engages in the development, sourcing, marketing, retail, and commission sale of various type of goods, including shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company sells its products through Lounge by Zalando and its outlets. Zalando SE was founded in 2008 and is headquartered in Berlin, Germany.
Common questions
Is Zalando (ZAL.DE) undervalued?
Against our discounted cash flow estimate of €16.94, ZAL.DE at €27.97 is 39% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is ZAL.DE's P/E ratio?
ZAL.DE trades at 61.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.