Is Volkswagen A Buy Stock

Volkswagen / By

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 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.

Why is the Volkswagen stock declining?

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.

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.
  • Weak growth predictions: Based on how sales are predicted to evolve, weak growth is predicted during the next few years.
  • 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.
  • Strong financial position: The company exhibits a strong financial position with intriguing earnings multiples thanks to a high level of cash and net margin.
  • Divergent consensus: It is difficult to value this stock because of the wide disparity between analyst price targets for it.
  • 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.

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 RSI is currently showing a strong sell signal at 43.231.
  • 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.
  • While the long-term stochastic is generating an oversold signal, the short, medium, and long-term stochastics are sending sell signals.
  • 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 MACD is presently at 0.15 and is indicating a weak buy.

Does the stock of Volkswagen pay dividends?

A $0.55 dividend per share is given by VWAGY. The yearly dividend yield for VWAGY is 2.85%.

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.

On June 1, 2022, Volkswagen AG stockholders who owned VWAGY shares before May 13, 2022 received a dividend payment of $0.55 per share. This was the company’s final dividend 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).

Why does Volkswagen have two stocks?

We at the Lab are well familiar with the auto industry. Our first ever published piece was about Daimler’s sum of the parts, and we recently commented on the performance of the European auto majors (Mercedes, Renault, and Ferrari) in the second quarter. We continue with Volkswagen (OTCPK:VWAGY) and its upcoming Porsche IPO today in a very similar manner. We should take note of the following before getting into the specifics:

  • There are two types of shares in Volkswagen AG and Porsche Automobil Holding SE: voting ordinary shares and voting preference shares.
  • Another listed firm with no manufacturing operations is Porsche Automobil Holding SE. This business is a holding, and Volkswagen AG is its biggest investor.
  • Volkswagen AG is a holding company with numerous brands and industrial units (many of these entities are run independently). One of these organizations is the Porsche Corporation. Volkswagen AG currently owns Porsche AG in its entirety.

As we anticipate the half-year results, it’s important to remember that Volkswagen’s market capitalization is currently 85.4 billion. The most recent speculations claim that Porsche’s initial public offering will be one of the biggest in Europe. Indeed, according to Bloomberg, the sports car manufacturer would have really gathered a demand greater than the offer during the pre-order process, valuing the company at between 60 billion and 85 billion.

The operation is anticipated to happen in the first week of September after receiving the go-ahead from the supervisory board, despite the markets’ negative phase and worries over Europe’s economic future. Volkswagen will continue to control the majority and only Porsche preferred shares without voting rights will be sold. More information:

  • Porsche AG’s capital will be split into 50% ordinary shares (voting) and 50% preference shares using the standard two-share structure (non-voting).
  • The Germany Stock Exchange will list 25% of the Porsche AG preference shares.
  • At a 7.5% premium over the price of the preference shares in their initial public offering, 25% plus one of the ordinary shares will be sold to Porsche Automobil Holding SE.
  • While Volkswagen will (again) control the majority of Porsche AG’s ordinary shares (minimum 75% holding) and preference shares (75 percent plus one share).
  • The present Volkswagen stockholders will get a special dividend payout.

In addition to the IPO consideration, Porsche AG released standalone guidance in July with a revenue line between 38 and 39 billion and a margin at the EBIT level in the 17 to 18% range for 2022. Management made a point of highlighting how this EBIT margin is anticipated to increase in the future as a result of improved product MIX and increased focus on the EV transition during the CMD.

Is VWAGY a wise investment?

For the first quarter ending March 31, 2022, VWAGY’s sales revenue climbed 0.5% year over year to 62.74 billion ($66.21 billion). Earnings after taxes for the corporation rose 96.9% from the previous year to $6.72 billion ($7.09 billion). Additionally, its earnings per preferred share were 13.11, up 101.3% from the previous year.

Its cash flow from operating activities also increased, to $9.31 billion ($9.82 billion), or 2.7%, over the previous year.

For fiscal 2022, analysts forecast that VWAGY will see EPS and sales increases of 96.7% and 4.5%, respectively, to $6.39 and $286.49 billion. Its revenue is anticipated to rise 5.9% year over year to $303.41 billion for fiscal 2023, while its EPS is anticipated to fall 5.2% year over year to $6.06.

VWAGY’s 6.51x projected EV/EBITDA is 22% less than the 8.36x sector average. The company’s forward P/S of 0.26x is 71.1% less than the industry average of 0.89x. Additionally, the stock’s projected EV/S of 0.91x is 16.7% lower than the industry average of 1.09x.

VWAGY’s trailing-12-month net income margin of 7.46% is 16.6% higher than the sector average of 6.39%. Likewise, compared to the industry average of 2.92%, its 4.17% trailing-12-month Capex/S is 42.6% greater. Additionally, compared to the 3.39% industry average, its 8.34% trailing-12-month levered FCF margin is 145.8% greater.

According to our POWR Ratings methodology, VWAGY receives a Buy overall grade (B). The POWR Ratings are determined by considering 118 different factors, with each factor being given the ideal amount of weight.

Additionally, each stock is assessed using our unique rating system’s eight different criteria. In line with its 0.42x trailing-12-month P/B, which is 79.5% less than the industry average of 2.07x, VWAGY receives an A grade for value.

Its 14.25% trailing-12-month EBITDA margin, which is 17.6% greater than the industry average of 12.11%, and B grade for quality are in line with each other.

Out of 65 stocks, VWAGY is ranked #12 in the sector of Auto & Vehicle Manufacturers.

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.

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.

How can I purchase VW shares in the US?

  • 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.

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.

Is VW stock affordable?

  • 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.
  • With a P/E (FWD) Ratio of 3, the Volkswagen stock is currently incredibly inexpensive.
  • 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.
  • My DCF Model determines a fair value for Tesla of $569, indicating a downside of 22.7%.