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Volkswagen AG ADR VWAPY

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Stewardship

PREMIUM

Media Reports Speculate Volkswagen Interested in Acquiring Europcar

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

According to media reports on Wednesday, no-moat rated Volkswagen is interested in acquiring daily car rental company Europcar. We see limited to no benefit for Volkswagen to own this asset, other than possible value appreciation during the next several years that may enable the car maker to sell it, once again. Nearly 15 years ago, Volkswagen owned the rent-a-car company and sold it for slightly more than EUR 3.0 billion in May 2006. At this point, the news is only speculation and media reports say there are at least two other interested parties--we see no reason to change our EUR 242 fair value estimate. While near-term uncertainties from COVID-19 create stock market volatility, for long-term patient investors, we view the shares of 4-star rated Volkswagen as attractively valued.

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Company Profile

Business Description

Volkswagen is one of the world's largest automotive manufacturers. Automotive brands include Volkswagen passenger cars, Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, and Skoda. Commercial vehicle brands include MAN, Scania, and Volkswagen. The company's financial services group provides dealer financing to support floor plans, consumer financing for vehicle purchases, and other financial services.

Contact
Letterbox 1848-2
Wolfsburg, 38436, Germany
T +49 536190
Sector Consumer Cyclical
Industry Auto Manufacturers
Most Recent Earnings Mar 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type
Employees 670,011

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