ANALYSIS ACCORDING TO THE VALUE APPROACH
The basic idea behind value investing is to determine the intrinsic value of a security (share or bond) and to buy this security when it is trading at a notable discount on the intrinsic value.
The value investment method is based on fundamentals, in other words the stock-picking process waives the use of price and economic data and forecasts. Fact-driven trading (balance sheets, customer base, products, management) is placed to the fore, long-term estimates of future (uncertain) developments and events are not in the foreground here.
Only those companies are analysed that are within the analyst’s area of expertise. Prior to the valuation procedure per se, all companies are put through a multi-stage quantitative and qualitative screening process that seeks to identify companies that have a competetent management that can be trusted, a comprehensible business model with good products, a high return for stakeholders and an attractive purchase price.
Within the framework of the share and bond valuation process, various recognised methods are used. Some of these differ substantially from the other securities analysis methods used by DZ BANK (fundamental stock analysis, technical analysis, sustainability analysis) with regard to the kind of analysis and the length of coverage. Accordingly, different assessments and investment recommendations may be obtained for individual securities.