Initiated by speculations that the German automaker will soon usurp Tesla’s (NASDAQ: TSLA) EV crown, Volkswagen’s (OTCMKTS: VWAGY) stock has enjoyed a fantastic 2021 thus far and is up around 60% YTD. VW declared their intention to switch to all-electric vehicles in Europe by 2033 back in July. Additionally, in response to President Joe Biden’s call for increased use of electric vehicles, the business plans “major modifications to its U.S. EV Program.
By pursuing ambitions to lower battery costs and open six gigafactories in Europe by 2030, VW is also seeking to match Tesla sales as early as next year and may even overtake the electric vehicle manufacturer by 2025.
Lofty plans for sure, and it appears that Tesla has a respectable rival in a “old world” automaker.
The ID.4 electric SUV from VW is now available for purchase in China, Europe, and the United States. On a single charge, it has a driving range of 248342 miles. Expectations have been raised even higher across the entire VW group thanks to plans announced by other VW subsidiaries like SEAT for a number of compact SUVs to hit the market by 2025.
As a result of the pressure surrounding VW, retail investors have flocked to the company, which has a constant share price of $32$33 at the moment.
When you look up VW stock, you’ll see that the firm has more than 20 ticker symbols, which can be perplexing. So, we divided it up.
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:
- Volkswagen pays out a respectable dividend, making it a desirable yield investment for investors.
- Launches that surpass expectations: According to past trends, the Volkswagen Group has a favorable surprise rate for its releases.
- Weak growth predictions: Based on how sales are predicted to evolve, weak growth is predicted during the next few years.
- High price target: The average analyst price target for this company is quite different from the present price, indicating an intriguing upside potential.
- 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.
- Strong financial position: The company exhibits a strong financial position with intriguing earnings multiples thanks to a high level of cash and net margin.
A technical analysis of Volkswagen stock:
Long-term signs from Volkswagen’s chart and technical analysis data are more bearish and include the following:
- While the long-term stochastic is generating an oversold signal, the short, medium, and long-term stochastics are sending sell signals.
- The MACD is presently at 0.15 and is indicating a weak buy.
- 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.
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.
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 2022-09-05, 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.
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.
Volkswagen: Should I Buy or Sell?
Hold is the general consensus rating for Volkswagen. Based on 7 buy ratings, 3 hold ratings, and 2 sell ratings, the firm has an average rating score of 2.42.
Why is VW stock trading so low?
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.
Will Volkswagen’s stock increase?
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.
Why is the VW stock falling?
The company’s 2022 vision, which includes a crucial shift to electric vehicles, was clouded by the war Russia is waging in Ukraine, according to a warning made by Volkswagen on Tuesday.
Vwapy: Is it a wise investment?
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. From the most recent price of 14.26, the median projection reflects a rise of +62.79%.
Does VWAGY offer dividends?
A $0.55 dividend per share is given by VWAGY. The yearly dividend yield for VWAGY is 2.89%.
The last ex-dividend date for Volkswagen AG was May 13, 2022. Shareholders of Volkswagen AG who held VWAGY shares before to this date were paid $0.55 per share as the company’s final dividend on June 1, 2022. The next ex-dividend date for Apple has not yet been disclosed.
Those Volkswagen AG shareholders who had VWAGY shares before to May 13, 2022 received a dividend payment of $0.55 per share on June 1, 2022, the company’s following quarterly payment date. If you want to be alerted when VWAGY pays its next dividend, add the stock to your watchlist.
Yes, VWAGY’s earnings per share for the most recent fiscal year were $3.82, and their dividend payout per share is $0.93. The sustainable dividend payout ratio for VWAGY is 15.12% ($0.93/$3.82).
What distinguishes each Volkswagen stock from the others?
with the shares “Ordinary shares have the symbol VOW. Ordinary shares entitle you to voting rights if you own them. Conversely, the shares with the “Preferred shares have the symbol VOW3.
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.
Buy or sell VWAGY?
Presently, VWAGY has a Zacks Rank of #2 (Buy) and a Value grade of A. The stock’s P/E ratio is 9.03, while the P/E for its sector is 11.56 on average.
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.
Is VW stock affordable?
- With a P/E (FWD) Ratio of 3, the Volkswagen stock is currently incredibly inexpensive.
- My DCF Model determines a fair value for Tesla of $569, indicating a downside of 22.7%.
- In this study, I’ll explain why I rate Tesla as a hold and Volkswagen as a buy.
- However, Tesla’s P/E (FWD) Ratio is almost 70.
- My DCF Model determines that Volkswagen is now undervalued, with a fair value of $471 and a potential upside of 145% for the German automaker.