Germany’s largest defense contractor Rheinmetall (RHMG) could see a further increase to its stock market value because of the war in Ukraine and higher defense spending in Europe.
“Our operating income in 2025 should be about 1.5 billion euros ($1.6 billion), maybe even 1.7 billion euros. For a fair valuation, multiply that with a factor of 11 or 12. That gives you an order of magnitude,” Armin Papperger, Rheinmetall’s Chief Executive Officer said in an interview with German newspaper publisher RND.
“A valuation of 17 billion euros is realistic for Rheinmetall over the medium term,” the CEO noted.
Currently, the company’s total market cap stands at EUR 10.824 billion.
The shares of Rheinmetall AG (RHMG) were last edging up 0.26% (EUR 0.650) to trade at EUR 249.750 on Xetra on Tuesday, as they extended the gains from the previous two market sessions.
The shares of Rheinmetall AG went up 123.99% in 2022, compared with a 12.35% loss for the benchmark index, DAX (GDAXI).
The shares have risen another 34.24% so far this year.
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