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KST Beteiligungs AGFRA:KSW 41 Degree of Operating Leverage is -5.25 as of Dec. 2025. GuruFocus rates FRA:KSW with a GF Score™ of 41/100 and a GF Value™ of €0.95 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 526 Conglomerates companies, KST Beteiligungs AG ranks better than 83.27% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
KST Beteiligungs AG's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was -5.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for KST Beteiligungs AG's Degree of Operating Leverage or its related term are showing as below:
FRA:KSW's Degree of Operating Leverage is ranked better than 83.27% of 526
companies
in the Conglomerates industry
Industry Median: 1.08
vs FRA:KSW: -5.25
KST Beteiligungs AG (FRA:KSW) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
KST Beteiligungs AG Degree of Operating Leverage Related Terms
KST Beteiligungs AG Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for KST Beteiligungs AG's Degree of Operating Leverage can be seen below:
* 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.
KST Beteiligungs AG Degree of Operating Leverage Chart
FRA:KSW vs MMM, HON: Degree of Operating Leverage Comparison
For the Conglomerates subindustry, KST Beteiligungs AG's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating 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.
KST Beteiligungs AG Degree of Operating Leverage vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, KST Beteiligungs AG's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where KST Beteiligungs AG's Degree of Operating 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 EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating 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 Operating Leverage of -5.25 mean?
KST Beteiligungs AG (FRA:KSW) has a Degree of Operating Leverage of -5.25 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for KST Beteiligungs AG and its competitors. According to the industry distribution chart, KST Beteiligungs AG ranks #88 out of 526 companies in the Conglomerates industry, placing it in the top 16.7%.
Is KST Beteiligungs AG's Degree of Operating Leverage too high?
KST Beteiligungs AG's current Degree of Operating Leverage is -5.25. Based on the distribution chart, KST Beteiligungs AG ranks #88 out of 526 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, KST Beteiligungs AG has a GF Score™ of 41/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does KST Beteiligungs AG's Degree of Operating Leverage compare to MMM and HON?
According to the Conglomerates industry distribution chart, KST Beteiligungs AG ranks #88 out of 526 companies for Degree of Operating Leverage. This places KST Beteiligungs AG in the top 17% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.08. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Conglomerates company?
The median Degree of Operating Leverage among Conglomerates companies is 1.08, based on 526 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for KST Beteiligungs AG and its competitors. For the Conglomerates industry, the median Degree of Operating Leverage is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KST Beteiligungs AG's current Degree of Operating Leverage is -5.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KST Beteiligungs AG stock overvalued right now?
Based on GuruFocus' analysis, KST Beteiligungs AG (FRA:KSW) is currently considered Modestly Overvalued. The stock's GF Value™ is €0.95, compared to a current price of €1.13 — trading 18.9% above its estimated fair value. The current Degree of Operating Leverage is -5.25. KST Beteiligungs AG's overall GF Score™ is 41/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For KST Beteiligungs AG (FRA:KSW), the current Degree of Operating Leverage is -5.25 as of Dec. 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 KST Beteiligungs AG (FRA:KSW) Overvalued in 2026?
Based on GuruFocus' analysis, KST Beteiligungs AG stock appears to be overvalued.
The current stock price of €1.13 is trading 18.9% above its estimated GF Value™ of €0.95.
GuruFocus considers KST Beteiligungs AG to be Modestly Overvalued.
Key valuation signals for FRA:KSW:
Degree of Operating Leverage: -5.25
GF Value™: €0.95 vs. price of €1.13 (18.9% above fair value)
No single metric tells the full story. See the FRA:KSW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KST Beteiligungs AG invests across industries in listed companies in Germany, it focuses on small and mid caps. It acquires investments with long-term goals and assists its clients active throughout the investment period.
41GF Score
Get the complete analysis for FRA:KSW
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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