Volkswagen Valuation
Is VOW undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of VOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: VOW (€86.9) is trading below our estimate of fair value (€387.52)
Significantly Below Fair Value: VOW is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for VOW?
Key metric: As VOW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is VOW's PE Ratio? | |
|---|---|
| PE Ratio | 3.4x |
| Earnings | €12.26b |
| Market Cap | €42.92b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.8x |
| Enterprise Value/EBITDA | 10.2x |
| PEG Ratio | 0.4x |
Price to Earnings Ratio vs Peers
How does VOW's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 6.8x | ||
BMW Bayerische Motoren Werke | 5.2x | 5.6% | €42.4b |
MBG Mercedes-Benz Group | 4.7x | 1.7% | €50.6b |
P911 Dr. Ing. h.c. F. Porsche | 14.4x | 11.3% | €57.5b |
PAH3 Porsche Automobil Holding | 2.9x | 20.6% | €10.9b |
VOW Volkswagen | 3.4x | 9.4% | €42.9b |
Price-To-Earnings vs Peers: VOW is good value based on its Price-To-Earnings Ratio (3.4x) compared to the peer average (6.8x).
Price to Earnings Ratio vs Industry
How does VOW's PE Ratio compare vs other companies in the Global Auto Industry?
| 4 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 4 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: VOW is good value based on its Price-To-Earnings Ratio (3.4x) compared to the Global Auto industry average (14.6x).
Price to Earnings Ratio vs Fair Ratio
What is VOW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 3.4x |
| Fair PE Ratio | 8.4x |
Price-To-Earnings vs Fair Ratio: VOW is good value based on its Price-To-Earnings Ratio (3.4x) compared to the estimated Fair Price-To-Earnings Ratio (8.4x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Insufficient data to show price forecast.
Discover undervalued companies
Intron Technology Holdings
HK$1.4b
An investment holding company, operates as an automotive electronics solutions provider in Hong Kong, the Mainland China, and internationally.
B46
HK$0.14
7D
-10.6%
1Y
-59.1%
Cooper-Standard Holdings
US$253.5m
Through its subsidiary, Cooper-Standard Automotive Inc., manufactures and sells sealing, fuel and brake delivery, and fluid transfer systems in the United States, Mexico, China, Poland, Canada, Germany, France, and internationally.
C31
US$13.90
7D
-4.8%
1Y
-18.2%
Forvia
€1.7b
Manufactures and sells automotive technology solutions in France, Germany, other European countries, the Americas, Asia, and internationally.
FAU
€8.61
7D
-0.4%
1Y
-50.8%