From a financial standpoint, purchasing Volkswagen seems like a good deal. Volkswagen produced EPS of 37.24 in 2021 while trading at a price-to-earnings ratio of 5. The company also reported 296 billion in revenues, an increase of 12.3% year over year, and 45.2 billion in cash from operations. Volkswagen’s EBITDA margin varies between 18.5% and 5.5%, and its net income margin is roughly the same. Notably, Volkswagen made significant R&D investments in 2021, depreciating 16.1 billion and capitalizing an additional 10 billion in CAPEX. Volkswagen had 73.7 billion in cash and cash equivalents at the end of the fiscal year 2021, while it had 229.1 billion in total debt.
The future of Volkswagen seems promising. According to the majority of analysts, Volkswagen will reach the revenue milestone of $300 billion by 2023. However, it’s expected that EPS will remain below 2021 levels, at under 36/share.
In This Article...
A critical analysis of Volkswagen stock:
With the following indicators, fundamental analysis of the Volkswagen share provides intriguing medium- and long-term signals:
- Launches that surpass expectations: According to past trends, the Volkswagen Group has a favorable surprise rate for its releases.
- High price target: The average analyst price target for this company is quite different from the present price, indicating an intriguing upside potential.
- Weak growth predictions: Based on how sales are predicted to evolve, weak growth is predicted during the next few years.
- Strong financial position: The company exhibits a strong financial position with intriguing earnings multiples thanks to a high level of cash and net margin.
- Volkswagen pays out a respectable dividend, making it a desirable yield investment for investors.
- Low valuation: It is estimated that Volkswagen’s enterprise value is 0.15 times sales. Therefore, based on its net book value and cash flow, the stock appears to be undervalued.
- Divergent consensus: It is difficult to value this stock because of the wide disparity between analyst price targets for it.
A technical analysis of Volkswagen stock:
Long-term signs from Volkswagen’s chart and technical analysis data are more bearish and include the following:
- The MACD is presently at 0.15 and is indicating a weak buy.
- While the long-term stochastic is generating an oversold signal, the short, medium, and long-term stochastics are sending sell signals.
- The following technical support and resistance levels are at 132.64 and 108.28, respectively. The next technical support levels are at 180.02 and 203.04.
- With the exception of the MA200 simple and exponential average, which is sending a purchase signal, all simple and exponential moving averages are sending sell signals.
- The RSI is currently showing a strong sell signal at 43.231.
Is an increase in Volkswagen stock anticipated?
The consensus price objective for Volkswagen AG among the 16 analysts who are providing 12-month price projections is 23.21, with a high estimate of 32.09 and a low estimate of 11.52. The median estimate reflects a gain of +27.15 percent over the most recent price of 18.25.
Analyst Recommendations
Two investing analysts were surveyed, and their current consensus is to buy Volkswagen AG stock. Since August, when it remained unchanged from a Buy rating, this rating has been stable. Mouse over the previous months for more information.
Is Volkswagen stock a good buy?
According to an analysis of Volkswagen’s historical stock price, the trend was downward and, as of 23 December, there were no indications that it will reverse.
An optimistic forecast for 2022 was supported by the consensus analyst sentiment and algorithm-based predictions from Wallet Investor.
Before purchasing Volkswagen shares, investors should conduct their own due diligence. None of these viewpoints need to be interpreted as a suggestion to buy stock in the business.
Why has Volkswagen stock gone down?
Since April of this year, the price of VOW3 stock has been declining as the company’s capacity to produce cars has been hampered by supply chain bottlenecks.
How high can Volkswagen stock go?
By the end of 2025, Volkswagen stock might cost 227.256 per share, according to forecasts made using an algorithm by Wallet Investor. These forecasts are derived from an evaluation of the current price trend. Up until then, a lot of factors could happen, which could have an impact on the performance of Volkswagen stock.
In five years, where will the Volkswagen stock be?
Stock of Volkswagen AG?
Is it a good idea to trade “VLKAF” stock today? Our real-time forecasting system indicates that
Volkswagen AG may be a successful investment choice if you’re looking for companies with strong returns.
At 2022-09-03, the Volkswagen AG quote is equivalent to 183.450 USD. According to our projections, a long-term growth is anticipated,
2027-08-27 stock price forecast for “VLKAF” is 355.013 USD. The earnings after a five-year investment are
anticipated to be roughly +93.52%. Your $100 investment today might be worth up to $193.52 in 2027.
Why is the VW stock falling?
recent income (Q4 2021) Volkswagen informed investors during their most recent earnings call that the Automotive group’s vehicle sales have decreased by 6.2% as a result of the Covid epidemic and a global semiconductor shortage.
Vow or VOW3 should I purchase?
The global impact of the Volkswagen pollution crisis is growing. American investors and consumers are suing Volkswagen in large numbers right now.
Some of you might be familiar with Volkswagen as an automaker but not as a stock. After learning about the emission scandal, I imagine that many investors are eager to examine the stock prices and purchase it for the first time.
Volkswagen stock is traded on markets around the world. But Frankfurt, Germany, is its principal market. There are multiple ticker symbols for Volkswagen when searching for Volkswagen equities on the Frankfurt market. So what makes those various symbols different from one another?
Volkswagen’s ticker symbols resemble “VOW.DE.” The exchange where equities are traded is indicated in the right part. But we’ll ignore that for now. Each symbol’s differences are displayed on the left portion.
Ordinary shares are the ones with the “VOW” symbol. Ordinary shares entitle you to voting rights if you own them. The shares with the “VOW3 sign, on the other hand, are preferred shares. Preferred shares are those that provide their owners preference in a number of ways, including dividend payments, asset distribution during a liquidation, and more. However, preferred shares typically do not grant you any voting rights. In addition, if we contrast the current values of Volkswagen’s common stock (VOW) and preferred stock (VOW3), the common stock is currently more expensive.
Additionally, there are additional Volkswagen emblems, such as VOW4 and VOW5. Depository receipt with a 20% value of VOW is referred to as VOW4. After purchasing shares of a company to use as collateral, a financial institution issues depository receipts as securities. The 20% value of VOW3 is also included in VOW5, which is a depository receipt for VOW3. In other words, both VOW and VOW3 depository receipts are exchanged in the market.
It’s preferable to learn more about Volkswagen shares because it’s likely that there will be numerous pieces on Volkswagen in the media over the next few weeks.
What distinguishes VWAGY and Vwapy from one another?
Simply said, from a financial standpoint, the two sets of shares are nearly equal. Voting rights are attached to the relatively “overpriced” shares, VWAGY, but not to VWAPY. The spread between the two shares is what’s different. The spread (monthly) averaged $0.31 or 2.2% for the twelve months that ended in March 2020. The spread (daily) averaged $1.77 or 9.7% for the twelve months that ended in March 2021 (and $1.39 and 8.4% if March 2021 were excluded). The spread was $7.22 and a 26.3% spread as of March 29, 2021. And as of March 30, when I am writing this, the spread has increased to an absurd $9.65, or 34.2%!
I’m betting that this pendulum swings back even if pendulums (price gaps) do occasionally swing out.
Simple: Short VWAGY and purchase VWAPY. An arbitrageur might make returns above 20% if the shares revert to a more conventional spread, whether it was the spread from the previous year or the year before. I’m not forecasting when the spread will return to normal, but I’m betting (investing?) that it will.
VWAGY: Should I Buy or Sell?
Hold for Volkswagen AG Unsponsored ADR It would be a good choice for value investors, according to its Value Score of B. VWAGY’s financial stability and expansion prospects show that it has the potential to outperform the market. Its growth score right now is C.
Can you purchase Porsche shares?
The stock market is no longer a viable option for investors to acquire actual Porsche shares. VW now owns the Porsche sports car brand outright.
How do I buy Volkswagen in the USA?
- Select a web broker. One of the most crucial elements to successful trading is this one.
- Establish a trading account. Open your account once you’ve chosen your broker.
- Put the trading platform in place.
- Performing your analysis
- Buy Volkswagen shares.
Does the stock of Volkswagen pay dividends?
Volkswagen distributes a dividend once every year. May is the payout month. The dividend calendar displays the month that each firm distributes dividends for more than 1,000 dividend stocks.
Is Vlkaf a wise investment?
We anticipate Volkswagen AG to continue to perform poorly over the next days or weeks since it has multiple warning signs pointing in the wrong directions and is in a broad and declining trend. As a result, we have a pessimistic opinion of this stock.
A Volkswagen Beetle is what?
Beetle, a Volkswagen
A two-door, rear-engine economy automobile with room for five persons (later, Beetles were limited to four), officially known as the Volkswagen Type 1, colloquially known as the “beetle” in German, the “Bug” in some English-speaking regions, and many more nicknames in other languages