Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Sedlmayr Grund und Immobilien KGaA's Degree of Financial Leverage for the quarter that ended in Sep. 2025 was 1.58. The higher Degree of Financial Leverage, the more volatile earnings will be.
STU:SPB's Degree of Financial Leverage is ranked worse than 76.18% of 1696
companies
in the Real Estate industry
Industry Median: 1
vs STU:SPB: 1.58
Sedlmayr Grund und Immobilien KGaA (STU:SPB) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Sedlmayr Grund und Immobilien KGaA Degree of Financial Leverage Related Terms
Sedlmayr Grund und Immobilien KGaA Degree of Financial Leverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sedlmayr Grund und Immobilien KGaA Degree of Financial Leverage Chart
Sedlmayr Grund und Immobilien KGaA Degree of Financial Leverage Competitor Comparison
For the Real Estate - Development subindustry, Sedlmayr Grund und Immobilien KGaA's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sedlmayr Grund und Immobilien KGaA Degree of Financial Leverage vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Sedlmayr Grund und Immobilien KGaA's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Sedlmayr Grund und Immobilien KGaA's Degree of Financial Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of 1.58 mean?
Sedlmayr Grund und Immobilien KGaA (STU:SPB) has a Degree of Financial Leverage of 1.58 as of Sep. 2025. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Sedlmayr Grund und Immobilien KGaA and its competitors. According to the industry distribution chart, Sedlmayr Grund und Immobilien KGaA ranks #1292 out of 1696 companies in the Real Estate industry, placing it in the top 76.2%.
Is Sedlmayr Grund und Immobilien KGaA's Degree of Financial Leverage too high?
Sedlmayr Grund und Immobilien KGaA's current Degree of Financial Leverage is 1.58. The Real Estate industry median Degree of Financial Leverage is 1.00. Sedlmayr Grund und Immobilien KGaA's value of 1.58 is 58% above this industry median. Based on the distribution chart, Sedlmayr Grund und Immobilien KGaA ranks #1292 out of 1696 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Sedlmayr Grund und Immobilien KGaA has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sedlmayr Grund und Immobilien KGaA's Degree of Financial Leverage compare to competitors?
According to the Real Estate industry distribution chart, Sedlmayr Grund und Immobilien KGaA ranks #1292 out of 1696 companies for Degree of Financial Leverage. This places Sedlmayr Grund und Immobilien KGaA in the lower half of its industry. The industry median Degree of Financial Leverage is 1.00. Sedlmayr Grund und Immobilien KGaA's value of 1.58 is 58% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Real Estate company?
The median Degree of Financial Leverage among Real Estate companies is 1.00, based on 1,696 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sedlmayr Grund und Immobilien KGaA's current Degree of Financial Leverage of 1.58 is 58% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Sedlmayr Grund und Immobilien KGaA and its competitors. For the Real Estate industry, the median Degree of Financial Leverage is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sedlmayr Grund und Immobilien KGaA's current Degree of Financial Leverage is 1.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sedlmayr Grund und Immobilien KGaA stock overvalued right now?
Based on GuruFocus' analysis, Sedlmayr Grund und Immobilien KGaA (STU:SPB) is currently considered Modestly Undervalued. The stock's GF Value™ is €1,654.60, compared to a current price of €1,190.00 — trading 28.1% below its estimated fair value. The current Degree of Financial Leverage is 1.58 and 58% above the Real Estate industry median of 1.00. Sedlmayr Grund und Immobilien KGaA's overall GF Score™ is 66/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Sedlmayr Grund und Immobilien KGaA (STU:SPB), the current Degree of Financial Leverage is 1.58 as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sedlmayr Grund und Immobilien KGaA (STU:SPB) Overvalued in 2026?
Based on GuruFocus' analysis, Sedlmayr Grund und Immobilien KGaA stock appears to be undervalued.
The current stock price of €1,190.00 is trading 28.1% below its estimated GF Value™ of €1,654.60.
GuruFocus considers Sedlmayr Grund und Immobilien KGaA to be Modestly Undervalued.
Key valuation signals for STU:SPB:
Degree of Financial Leverage: 1.58
GF Value™: €1,654.60 vs. price of €1,190.00 (28.1% below fair value)
Industry Position: 58% above the Real Estate median (#1292 of 1696)
No single metric tells the full story. See the STU:SPB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sedlmayr Grund und Immobilien KGaA Business Description
Sedlmayr Grund und Immobilien KGaA operates as a real estate company. It is involved in the management, development, and expansion of its property portfolio which mainly comprises a housing and commercial areas. Its other operations consist of real estate leasing, real estate sales and serviced apartment leasing.
66GF Score
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