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.
The warning from Volkswagen (VWAGY) follows the German automaker’s announcement on Friday that sales of battery electric cars (BEVs) will nearly treble to 452,900 in 2021. However, that was considerably short of the approximately 1 million electric vehicles that Tesla (TSLA) sold last year as well as its goal of 500,000. The auto industry behemoth with its headquarters in Wolfsburg is on a mission to dethrone Tesla as the pioneer of electric transportation.
Tuesday, management cited a scarcity of cable harnesses from Ukraine as the reason why the firm had to stop producing important electric vehicles like the ID.3 and ID.4, among other things.
Volkswagen has demonstrated its resiliency over the years, and CEO Herbert Diess assured the media at a news conference in Wolfsburg that the company will handle the issue as well.
Diess expanded on a warning he had issued on Friday about the threat the conflict and supply chain bottlenecks posed to the company’s operations. “The crisis in Ukraine has called our current outlook into question,” he said. According to reports, 380 businesses have left Russia because of the conflict, but others are still there and still doing business. Nickel, which is frequently utilized in EV batteries, is mostly supplied by Russia.
Volkswagen is giving China, where it has a 16% market share and where EV sales increased by more than fourfold in 2021, a higher priority in the midst of the turbulence in Europe.
The company anticipates growing revenue by 8%-13% and deliveries by 5%10% in 2022. In the second part of the year, it anticipates an improvement in the supply of semiconductors.
According to management, prices for both internal combustion engine vehicles and electric vehicles will increase as a result of rising raw material costs. It issued a warning that commodities volatility might last into 2026.
In This Article...
Is VW stock affordable?
- My DCF Model determines a fair value for Tesla of $569, indicating a downside of 22.7%.
- With a P/E (FWD) Ratio of 3, the Volkswagen stock is currently incredibly inexpensive.
- However, Tesla’s P/E (FWD) Ratio is almost 70.
- In this study, I’ll explain why I rate Tesla as a hold and Volkswagen as a buy.
- 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.
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.
- 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.
- 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.
- Launches that surpass expectations: According to past trends, the Volkswagen Group has a favorable surprise rate for its releases.
- 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.
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 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 RSI is currently showing a strong sell signal at 43.231.
- The MACD is presently at 0.15 and is indicating a weak buy.
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.
Volkswagens prognosis is good. 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 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.
Will Volkswagen’s stock increase?
The median price target 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.
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 company has an average rating score of 2.42.
Volkswagen: Does it 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.
Vow or VOW3 should I purchase?
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.
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.
Stock Predictions
- Is the stock of Audi AG traded publicly?
- What is the current stock price for Audi AG?
- How can I acquire shares of Audi AG online?
By creating a trading account with a reputable brokerage house like TD Ameritrade or tastyworks, you can purchase Audi AG shares.
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.
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.
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.
Volkswagen stock: Is it overpriced?
The Real Value of Volkswagen A G is currently $121.84 per share. The company’s standard pricing is $142.4. The company currently seems to be overvalued.
Volkswagen owns whom?
Ten brands from five different European nations make up the Group: Audi, Lamborghini, Bentley, Porsche, Ducati, KODA, SEAT, and Volkswagen Commercial Vehicles. The Volkswagen Group also has a large number of additional brands and business divisions, including financial services. Volkswagen Financial Services includes leasing, leasing for customers and dealers, banking, insurance, and fleet management services.
The Volkswagen Group is laying the groundwork for the biggest change process in its history with its NEW AUTO – Mobility for Generations to Come Group strategy and future program: the realignment of one of the best automakers to become a leading provider of sustainable mobility on a global scale. To do so, the Group will change its core automotive business, which will include, among other things, the introduction of another 30 or more fully electric vehicles by 2025 and the expansion of battery technology and autonomous driving as new key businesses.