Scherzer & Co AG: A Disconcerting Disconnect Between Market Value and Intrinsic Worth
Scherzer & Co AG, the German private‑equity outfit with a market cap of €65.8 million, has just published a series of disclosures that expose a stark mismatch between its quoted share price and the underlying value of its portfolio. In the days following the announcement that the company has purchased 21 456 of its own shares under the 2025 buy‑back programme, investors were confronted with a stark figure: the net asset value (NAV) per share stood at €3.39 as of 31 December 2025, while the market price lingered at €2.42. In other words, the market is devaluing the company by 28.6 % relative to its own book‑value.
A Buy‑Back That Undermines Confidence
The company’s announcement, transmitted through EQS, details the acquisition of 21 456 shares between 19 December 2025 and 2 January 2026. The buy‑back was ostensibly part of the 2025 programme, extended in December 2025, yet the disclosed volume represents only a fraction of the total shares issued. Critics argue that such a modest repurchase, executed at a price that is already below the intrinsic value, signals a lack of confidence in the company’s future prospects rather than a genuine attempt to support the share price.
NAV Versus Market Reality
The NAV calculation, provided by EQS News, is a key metric for investors evaluating a private‑equity firm’s performance. It accounts for the market value of all portfolio positions, adjusted for the company’s liabilities as of 31 December 2025. The resulting figure of €3.39 per share translates to a market valuation that is 28.6 % lower than the NAV, a gap that cannot be ignored by serious investors. Even when accounting for the absence of audited figures and the exclusion of potential tax adjustments, the disparity remains significant.
Implications for Investors
For shareholders, the implications are twofold:
Underappreciated Asset Base – The company’s portfolio of insurance, retail, internet, and real‑estate holdings is undervalued by the market. This underappreciation could be symptomatic of broader market skepticism towards Scherzer & Co’s strategy or its management’s ability to unlock value.
Risk of Over‑Concentration – The disclosed buy‑back volume, while small relative to the total shares outstanding, highlights a potential risk of over‑concentration in a few large positions. The top ten holdings, though not listed in detail here, may dominate the firm’s risk profile, especially if those positions are sensitive to sector‑specific downturns.
Market Context
The company’s price performance has been uneven over the past year: a 52‑week high of €2.44 reached in late December 2025, followed by a 52‑week low of €1.95 in early April 2025. The recent price of €2.42, while close to the recent high, remains well below the NAV. The price‑to‑earnings ratio of 10.1, while modest, does not compensate for the disconnect between book value and market valuation.
Conclusion
Scherzer & Co AG’s recent disclosures lay bare a troubling reality: a company whose market price is significantly below the intrinsic value of its assets, and whose share repurchase activity does not appear to be a decisive move to restore investor confidence. For investors, the data suggest a need for caution and a deeper examination of the firm’s strategy, portfolio composition, and governance. The gap between NAV and market price is not merely a statistical curiosity; it is a warning sign that should not be dismissed.
