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.
In This Article...
VWAGY vs Vwapy, which is preferable?
In the United States, automobiles are still likely the most common mode of passenger transportation. Major automakers have revenues and market capitalizations that top the billion dollar mark. The sector has recently seen some ground-breaking advancements including self-driving cars and electrified vehicles. While there are established competitors in this industry like General Motors, Ford, and Toyota Motors, there are also new or rapidly expanding players like Tesla, which has significantly contributed to the rising popularity of the electric vehicle market. We’ve seen collaborations between automakers and tech behemoths like Google’s subsidiary, Waymo, as well as discussions of potential alliances as technical breakthroughs in the automotive industry gain traction.
The market capitalization of VWAGY ($84.8B) and VWAPY ($84.8B) is identical.
VWAGY’s P/E ratio is greater than VWAPY’s: VWAGY (5.35 vs. VWAPY) (4.18).
VWAPY’s YTD gains are better than VWAGY’s at -25.086. (-34.989).
EBITDA for VWAGY (50.6B) and VWAPY (50.6B) is equivalent annually.
Both VWAGY and VWAPY have the same amount of money in the bank (57.7B).
The debt for VWAGY (179B) and VWAPY (179B) is the same.
Revenues for VWAGY (253B) and VWAPY (253B) are equal.
What distinguishes the VWAGY and VWAPY stocks?
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.
Are Volkswagen shares a smart 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.
What distinguishes Volkswagen ordinary shares from preference shares?
In the past, VW’s Preference Shares (OTCMKTS: VWAPY) have had substantially more trading activity than their Common Shares, making them more liquid. These do not have voting privileges, but they are given preference in the event of any corporate matters, such as the payment of dividends to shareholders.
Is it wise to buy Vwapy?
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%.
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.
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).
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.
How can I get Volkswagen stock?
Our “sponsored” products are displayed as a consequence of a business advertising agreement or to draw attention to a specific feature. Sponsored items do not necessarily indicate that a product is the best in its category or that it represents all available options. Finding the best product for you requires comparing your options.
How to buy shares in Volkswagen
- contrasting stock trading platforms Your search for a platform that works for you can be aided by our comparison table.
- Open a trading account.
- Fill out an application with your information.
- Verify your payment information.
- your account with money.
- Examine the stock.
- Before choosing if a stock is a good investment for you, look for the stock using its name or ticker symbol, such as VOW.
- Purchase today or tomorrow.
- Use a market order to purchase the specified number of shares or a limit order to postpone your purchase until the stock reaches the desired price.
- Inspect your investment.
- Tracking your stock will help you optimize your portfolio.
Compare online trading platforms
Owing to their complexity and significant risk of losing money quickly due to leverage, CFDs should be used with caution. When trading CFDs, 7489% of retail investor accounts experience a loss. You should think about your understanding of CFDs’ operation and your ability to bear the substantial risk of financial loss.
Volkswagen, does it have an ADR?
The number of authorized registrations for Volkswagen AG’s American Depositary Receipt (ADR) programs has been reached, hence the company has decided against renewing them.
With effect from August 13, 2018, Volkswagen AG has informed JPMorgan Chase Bank, N.A., as Depositary, that it is ending all of its sponsored ADR programs.
Volkswagen’s products and stock have a presence all over the world. The following list includes the exchanges where the shares are traded:
Shares will no longer trade on the SIX Swiss Exchange after their delisting there (German only)
Do Americans trade Volkswagen?
In lunchtime trading on Thursday, Volkswagen AG’s U.S.-listed shares rose 2.6% to a new high. The German manufacturer was then in preliminary talks to offer a minority stake in its Porsche unit.
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.
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.