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Volkswagen AG ADR VWAGY

Morningstar Rating
$12.01 −0.31 (2.55%)
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Company Report

Volkswagen: Fair Value Down 2.5% Amid Competition for Entry-Level EVs, Tapered Demand

Amid increasing competition in the nascent market for EVs selling for less than EUR 20,000, we have moderated our 2024 forecast for no-moat Volkswagen's results. As a result, we lowered our fair value estimate for the Europe-listed shares to EUR 346 from EUR 355 and for the US-listed depository receipts to $37.50 from $38 because of slight appreciation of the euro against the dollar.

Price vs Fair Value

VWAGY is trading at a 654% premium.
Price
$12.01
Fair Value
$21.10
Uncertainty
High
1-Star Price
$74.28
5-Star Price
$14.30
Economic Moat
Lgbq
Capital Allocation
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Bulls Say, Bears Say

Bulls

With substantial liquidity and a conservatively financed capital structure, Volkswagen has a high degree of financial flexibility and is well positioned to weather the lingering effects of covid-19 and the microchip shortage.

Bears

Volkswagen has one of the most aggressive product plans in BEVs, substantially increasing cost, while global light-vehicle demand is at risk from lingering coronavirus effects, the chip crunch, and the Ukraine crisis.

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News

Trading Information

Previous Close Price
$12.32
Day Range
$11.9112.10
52-Week Range
$11.1617.53
Bid/Ask
$11.99 / $12.13
Market Cap
$60.21 Bil
Volume/Avg
562,354 / 204,815

Key Statistics

Price/Earnings (Normalized)
3.48
Price/Sales
0.17
Dividend Yield (Trailing)
8.13%
Dividend Yield (Forward)
8.13%
Total Yield
8.13%

Company Profile

Volkswagen is one of the world's largest automotive manufacturers. Its passenger car brands include Volkswagen, Audi, Bentley, Lamborghini, Porsche, SEAT, and Skoda. Commercial vehicle brands include MAN, Navistar, Scania, and Volkswagen. The company's financial services group provides dealer financing to support floor plans, consumer financing for vehicle purchases, vehicle leasing, banking, and other financial services. In 2022, Europe was Volkswagen's largest light vehicle market at 41% of total volume, followed by China at 37%, and rest of world at 22%.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Large Value
Total Number of Employees
656,134

Competitors

Valuation

Metric
VWAGY
HMC
NSANY
Price/Earnings (Normalized)
3.487.883.61
Price/Book Value
0.340.610.32
Price/Sales
0.170.370.15
Price/Cash Flow
1.194.031.72
Price/Earnings
VWAGY
HMC
NSANY

Financial Strength

Metric
VWAGY
HMC
NSANY
Quick Ratio
0.891.071.36
Current Ratio
1.161.451.75
Interest Coverage
29.4327.537.91
Quick Ratio
VWAGY
HMC
NSANY

Profitability

Metric
VWAGY
HMC
NSANY
Return on Assets (Normalized)
2.83%3.87%2.64%
Return on Equity (Normalized)
10.57%8.59%8.81%
Return on Invested Capital (Normalized)
4.62%4.54%3.75%
Return on Assets
VWAGY
HMC
NSANY
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