Volkswagen AG
VOW: XETR (DEU)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€932.00 | Qsppp | Qbfjw |
Volkswagen’s History of Poor Execution Overshadows the Value of Underlying Businesses
Business Strategy and Outlook
VW has a long history of high capital spending, stubbornly growing fixed-cost base, and net cash outflows. Management touts the firm's advantages of global scale and strong brands. However, its financial metrics compare unfavorably with peers. Investors seem fatigued. VW’s 75.4% share in Porsche accounts for about 100% of the entire group’s market capitalization alone. Its net asset value per share is more than 6 times its current share price.