Deutsche Real Estate AGFRA:DRE2 54 Gross Margin % is 67.92% as of Dec. 2025, which is 6% below its 10-year median of 72.41. GuruFocus rates FRA:DRE2 with a GF Score™ of 54/100 and a GF Value™ of €7.83 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,646 Real Estate companies, Deutsche Real Estate AG ranks better than 76.37% on this metric.
FRA:DRE2's Gross Margin % is ranked better than 76.37% of 1646
companies
in the Real Estate industry
Industry Median: 36.96
vs FRA:DRE2: 65.32
Deutsche Real Estate AG had a gross margin of 67.92% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Deutsche Real Estate AG was -3.80% per year.
Deutsche Real Estate AG (FRA:DRE2) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Deutsche Real Estate AG had a gross margin of 67.92% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Deutsche Real Estate AG Gross Margin % Related Terms
Deutsche Real Estate AG Gross Margin % 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.
FRA:DRE2 vs CBRE, BEKE, JLL: Gross Margin % Comparison
For the Real Estate Services subindustry, Deutsche Real Estate AG's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.
Deutsche Real Estate AG Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Deutsche Real Estate AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Deutsche Real Estate AG's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Deutsche Real Estate AG (FRA:DRE2) has a Gross Margin % of 67.92% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Deutsche Real Estate AG and its competitors. This is near median its historical median of 72.41. Over the past decade, Deutsche Real Estate AG's Gross Margin % has ranged from 57.87 to 76.40. According to the industry distribution chart, Deutsche Real Estate AG ranks #389 out of 1646 companies in the Real Estate industry, placing it in the top 23.6%.
Is Deutsche Real Estate AG's Gross Margin % too high?
Deutsche Real Estate AG's current Gross Margin % of 67.92% is near median its 10-year median of 72.41. Over the past 10 years, this metric has ranged from a low of 57.87 to a high of 76.40. The Real Estate industry median Gross Margin % is 36.96. Deutsche Real Estate AG's value of 67.92% is 83.8% above this industry median. Based on the distribution chart, Deutsche Real Estate AG ranks #389 out of 1646 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Deutsche Real Estate AG has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deutsche Real Estate AG's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Deutsche Real Estate AG ranks #389 out of 1646 companies for Gross Margin %. This places Deutsche Real Estate AG in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.96. Deutsche Real Estate AG's value of 67.92% is 83.8% above this benchmark. Historically, Deutsche Real Estate AG's own Gross Margin % has ranged from 57.87 to 76.40 over the past decade. While the company's 10-year median is 72.41 vs. the industry median of 36.96, Deutsche Real Estate AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Real Estate company?
The median Gross Margin % among Real Estate companies is 36.96, based on 1,646 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deutsche Real Estate AG's current Gross Margin % of 67.92% is 83.8% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Deutsche Real Estate AG and its competitors. For the Real Estate industry, the median Gross Margin % is 36.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deutsche Real Estate AG's current Gross Margin % is 67.92%, which is near median its own 10-year median of 72.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deutsche Real Estate AG stock overvalued right now?
Based on GuruFocus' analysis, Deutsche Real Estate AG (FRA:DRE2) is currently considered Significantly Overvalued. The stock's GF Value™ is €7.83, compared to a current price of €12.30 — trading 57.1% above its estimated fair value. The current Gross Margin % is 67.92%, which is near median its 10-year median of 72.41 and 83.8% above the Real Estate industry median of 36.96. Deutsche Real Estate AG's overall GF Score™ is 54/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Deutsche Real Estate AG (FRA:DRE2), the current Gross Margin % is 67.92% 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 Deutsche Real Estate AG (FRA:DRE2) Overvalued in 2026?
Based on GuruFocus' analysis, Deutsche Real Estate AG stock appears to be overvalued.
The current stock price of €12.30 is trading 57.1% above its estimated GF Value™ of €7.83.
GuruFocus considers Deutsche Real Estate AG to be Significantly Overvalued.
Key valuation signals for FRA:DRE2:
Gross Margin %: 67.92% (near median its 10-year median of 72.41)
GF Value™: €7.83 vs. price of €12.30 (57.1% above fair value)
Industry Position: 83.8% above the Real Estate median (#389 of 1646)
No single metric tells the full story. See the FRA:DRE2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deutsche Real Estate AG is engaged in investing in building a portfolio with focus on office, logistics and retail properties in the growth regions of Germany.
54GF Score
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