BERLIN, June 10 (Reuters) – The CEO of Rheinmetall, Germany’s largest defense contractor (RHMG.DE), said he expected a further rise in the company’s stock value due to the war in Ukraine and increased defense spending. expenditure in Europe.
“Our operating result in 2025 should be around 1.5 billion euros, maybe even 1.7 billion euros. For a fair valuation, multiply that by a factor of 11 or 12. That gives you an order of magnitude,” says CEO Armin Paperger. told the German newspaper publisher RND in an interview published on Saturday.
“A valuation of EUR 17 billion is realistic for Rheinmetall in the medium term,” he added.
Rheinmetall’s current inventory valuation is around 10.5 billion euros, on an operating profit of 754 million euros in 2022.
The stock market value of the company, a maker of tanks, ammunition and other war equipment, has tripled since December 2021 and entered the German blue-chip DAX (.GDAXI) index earlier this year.
($1 = 0.9305 euros)
Reporting by Christian Kraemer, Holger Hansen, written by Sabine Siebold Edited by Kirsti Knolle and Madeline Chambers