Porsche SE (XTRA:PAH3): Assessing Valuation Following Sharp Net Income Decline in Nine-Month Results

Porsche Automobil Holding (XTRA:PAH3) reported its earnings for the first nine months of 2025, revealing net income of EUR 1,240 million. This figure is down sharply from EUR 2,482 million in the same period last year.

See our latest analysis for Porsche Automobil Holding.

Despite the recent drop in net income, Porsche Automobil Holding has actually seen a burst of momentum, with its share price returning 12.6% over the past month and up 4.1% year-to-date. Looking further out, the 1-year total shareholder return stands at a healthy 13.7%. However, the longer-term picture is less rosy with a negative 24% total return over three years, suggesting some volatility even as sentiment seems to be shifting in the short term.

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With recent performance swinging between notable declines and surprising rebounds, the big question now is whether Porsche Automobil Holding is undervalued at current levels or if the market already anticipates a turnaround in its fortunes.

Most Popular Narrative: 5.7% Undervalued

Compared to Porsche Automobil Holding’s last close at €37.73, the most popular narrative suggests shares are still trading below fair value, hinting at hidden upside. Analyst and market signals see a potential gap between where the price is and where it could be heading.

"PAH3 appears undervalued at current levels, but traditional DCF valuation is challenging due to its holding company structure. The discount to NAV and analyst targets suggest potential upside, though risks around VW's performance and debt levels remain key concerns."

Read the complete narrative.

Curious which critical financial levers shape this compelling fair value? Find out why profit growth forecasts and the narrative's focus on unique sector links set Porsche Automobil Holding apart from typical auto shares. Don't miss the details fueling this view; there are some unexpected factors worth exploring.

Result: Fair Value of €40 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on Volkswagen’s performance and high net debt levels could quickly shift the outlook for Porsche Automobil Holding’s valuation.

Find out about the key risks to this Porsche Automobil Holding narrative.

Build Your Own Porsche Automobil Holding Narrative

If you want a different perspective, or like to draw your own conclusions from the data, you can put together your own narrative for Porsche Automobil Holding in just a few minutes with Do it your way.

A great starting point for your Porsche Automobil Holding research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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