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.
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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 VW a wise investment?
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.
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.
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.
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.
- 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.
- Another listed firm with no manufacturing operations is Porsche Automobil Holding SE. This business is a holding, and Volkswagen AG is its biggest investor.
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:
- The present Volkswagen stockholders will get a special dividend payout.
- 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).
- Porsche AG’s capital will be split into 50% ordinary shares (voting) and 50% preference shares using the standard two-share structure (non-voting).
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.
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.
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.
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 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 VW stock affordable?
- My DCF Model determines a fair value for Tesla of $569, indicating a downside of 22.7%.
- 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.
- 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.
- In this study, I’ll explain why I rate Tesla as a hold and Volkswagen as a buy.
VW: Does it turn a profit?
Despite selling about 2.4 million fewer cars than in 2019, the Volkswagen Group nonetheless generated a healthy profit and margin. Operating profit before special items increased by almost twofold to EUR 20.0 (10.6) billion compared to the prior year, translating to an operating return on sales before special items of 8.0 (4.8) percent.
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.