(CNN) Real Madrid has been named the most valuable football club in Europe, according to financial consultancy KPMG, overtaking Manchester United.

Based on "enterprise value," the Spanish giant is worth $3.67 billion, with Manchester United ($3.65bn) falling to second and Bundesliga champion Bayern Munich ($3.07bn) rising to third.

The report is based on the 2016-17 and 2017-18 seasons -- when Real won the Champions League -- and takes into account profitability, broadcasting rights, popularity, sporting potential and stadium value.

On the field, Real Madrid has endured a testing season after finishing third in La Liga and exiting the Champions League before the quarterfinal stage. Zinedine Zidane returned to manage the club in March , replacing Argentine Santiago Solari.

Real boasted a 10% annual 'enterprise value' increase

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