Current price – €113.9
Target price – €146.2
Growth potential – 28.4%🔥
Dividend yield – 7.92%💸
Investment time – 1 year
🚘Volkswagen AG is a German company, one of the world's largest automakers. It produces cars under the brands Volkswagen, Audi, SEAT, Skoda, Bentley, Bugatti, Lamborghini and others, and also owns a controlling stake in Porsche. The company's shares are traded on the Frankfurt Stock Exchange and are included in the DAX index calculation base. The fair value of Volkswagen AG shares is €146.2, which implies growth potential of 28.4%. Dividend yield in euros is 7.92%.
Investment theses
🔼Strong financial position.
Volkswagen's Q1 2024 financials were not outstanding. The company's revenue amounted to €75.5 billion, which is 1% lower than for the same period a year earlier. At the same time, operating profit fell by 20% y/y to €4.6. However, Volkswagen is confident in the future, expecting that by the end of 2024, revenue will grow in the range of 5-7%. This could be facilitated by the launch of new models by the company, which is planned for later this year. In addition, Volkswagen has launched a cost-cutting program, which has not yet had time to show its full potential, but may have an effect in the near future.
🔼Attractive valuation.
Volkswagen is valued extremely cheaply compared to its competitors. The P/S ratio, which is the ratio of the company's price to annual revenue, is at 0.17, compared to 0.35 for BMW and 0.45 for Mercedes-Benz.
🔼Dividends.
The company raised its dividend to €9 per ordinary share in 2024, which implies a dividend yield of 7.92%. This level in euros is quite high.
Target price – €146.2
Growth potential – 28.4%🔥
Dividend yield – 7.92%💸
Investment time – 1 year
🚘Volkswagen AG is a German company, one of the world's largest automakers. It produces cars under the brands Volkswagen, Audi, SEAT, Skoda, Bentley, Bugatti, Lamborghini and others, and also owns a controlling stake in Porsche. The company's shares are traded on the Frankfurt Stock Exchange and are included in the DAX index calculation base. The fair value of Volkswagen AG shares is €146.2, which implies growth potential of 28.4%. Dividend yield in euros is 7.92%.
Investment theses
🔼Strong financial position.
Volkswagen's Q1 2024 financials were not outstanding. The company's revenue amounted to €75.5 billion, which is 1% lower than for the same period a year earlier. At the same time, operating profit fell by 20% y/y to €4.6. However, Volkswagen is confident in the future, expecting that by the end of 2024, revenue will grow in the range of 5-7%. This could be facilitated by the launch of new models by the company, which is planned for later this year. In addition, Volkswagen has launched a cost-cutting program, which has not yet had time to show its full potential, but may have an effect in the near future.
🔼Attractive valuation.
Volkswagen is valued extremely cheaply compared to its competitors. The P/S ratio, which is the ratio of the company's price to annual revenue, is at 0.17, compared to 0.35 for BMW and 0.45 for Mercedes-Benz.
🔼Dividends.
The company raised its dividend to €9 per ordinary share in 2024, which implies a dividend yield of 7.92%. This level in euros is quite high.
How to invest
Open a free brokerage account with Unibank Invest and start trading directly from your phone. Our mobile app grants you access to the world's largest exchanges and popular investment instruments like stocks, bonds, and ETFs.
To open a brokerage account, fill in an online form on unibankinvest.am or call +374 43 004 382.
#Investments #Finance #UnibankInvest #MarketTrends #InvestingTips #bonds #stocks
‼️ Disclaimer
The information is only indicative, is not exhaustive and is provided solely for discussion purposes. The information should not be regarded as a public offer, request or invitation to purchase or sell any securities, financial instruments or services.
No guarantees in direct or indirect form, including those stipulated by law, are provided in connection with the specified information and materials. The information presented above cannot be considered as a recommendation for investing funds, as well as guarantees or promises of future profitability of investments.
The risk of negative consequences as a result of the use of the above recommendations, opinions and statements is fully borne by the addressee of the information.
Open a free brokerage account with Unibank Invest and start trading directly from your phone. Our mobile app grants you access to the world's largest exchanges and popular investment instruments like stocks, bonds, and ETFs.
To open a brokerage account, fill in an online form on unibankinvest.am or call +374 43 004 382.
#Investments #Finance #UnibankInvest #MarketTrends #InvestingTips #bonds #stocks
‼️ Disclaimer
The information is only indicative, is not exhaustive and is provided solely for discussion purposes. The information should not be regarded as a public offer, request or invitation to purchase or sell any securities, financial instruments or services.
No guarantees in direct or indirect form, including those stipulated by law, are provided in connection with the specified information and materials. The information presented above cannot be considered as a recommendation for investing funds, as well as guarantees or promises of future profitability of investments.
The risk of negative consequences as a result of the use of the above recommendations, opinions and statements is fully borne by the addressee of the information.
