In our columns, and notwithstanding its frankly appalling history of value destruction, we observed that such a valuation seemed abnormally low for a group that had committed to returning EUR8 billion of capital to its shareholders per year until 2025.
Like its French peer BNP Paribas - Deutsche Bank is currently trading at a multiple of seven times earnings, with a valuation malus compared to the rest of the European equity market, which is still trading at an all-time high.
Despite a stock that has doubled in value over the last 24 months, the situation could therefore continue to interest value investors. Value investors, however, know that paying a seemingly attractive price does not always translate into a successful investment operation.
Deutsche Bank experienced this first-hand with its acquisition of Postbank in the wake of the great financial crisis of 2008-2009. Not only did this acquisition fail to deliver the expected results, but Postbank's former shareholders are complaining that they were cheated.
A German court recently upheld their claims. As a result, Deutsche will have to set aside provisions this year to meet the claim. On the face of it, the group is likely to recover without too much damage, since the provision in question represents less than a fifth of the pre-tax profit expected this year.
Just like its Italian peer Unicredit in its day, Deutsche is committed to moderating its expansion ambitions and focusing instead on shareholder returns. This is evidenced by its all-out cost-cutting programs - there's still a lot of fat to be trimmed - and a dividend that should reach one euro per share next year.
While profitability remains anemic, it is also in line with the European banking sector average - for example, with those of BNP or Barclays, to whom Deutsche is traditionally compared.