Volkswagen VOW3.DE
Volkswagen AG is a German automobile manufacturer that designs, produces, and sells passenger and commercial vehicles under multiple brands (VW, Audi, Porsche, etc.) globally. Volkswagen trades at a P/E of 6.83 and a FCF yield of 39.5%, reflecting market pessimism, but its financial health is fragile (ND/EBITDA 11.1) and earnings growth is falling 41%, justifying the discount.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Volkswagen AG is a German automobile manufacturer that designs, produces, and sells passenger and commercial vehicles under multiple brands (VW, Audi, Porsche, etc.) globally. Volkswagen trades at a P/E of 6.83 and a FCF yield of 39.5%, reflecting market pessimism, but its financial health is fragile (ND/EBITDA 11.1) and earnings growth is falling 41%, justifying the discount.
Score by category
| Category | Score |
|---|---|
| Financial health | 1.9 |
| Quality / Moat | 2.9 |
| Valuation | 8.4 |
| Growth | 2.1 |
| Dividend | 9.1 |
| Momentum | 3.7 |
| Risk & Context | 4.3 |
OVERALL SCORE: 4.7/10
Context and risks
Volkswagen has significant exposure to China, where geopolitical tensions and local competition in electric vehicles are pressuring its sales. Additionally, the tax dispute in India adds jurisdictional risk. Rising rates in Europe make refinancing its high debt (ND/EBITDA 11.1) more expensive.
News considered in the analysis
- Why Is Volkswagen (XTRA:VOW3) Recalling More Than 2.8 Million Vehicles? — Retirada masiva de 2,8 millones de vehículos Audi y VW a nivel mundial; coste directo y riesgo reputacional material, aunque parte ya está descontada en el precio.
- Over 2.8 million Audi and Volkswagen vehicles face recall worldwide — Confirmación de la retirada a gran escala; amplifica el impacto negativo en márgenes y en la confianza del consumidor.
- JSW pushes Volkswagen to bear $1.4bn India tax bill – report — Disputa fiscal en India por 1.400 millones de dólares; si se materializa, supone un impacto financiero relevante en un mercado clave.
- CATL starts trial battery cell production at new plant in Hungary — La producción local de baterías en Hungría reduce costes y asegura suministro para la transición eléctrica de VW en Europa.
- Factorial and SK On Sign MoU to Explore Solid-State Battery Manufacturing — Acuerdo para baterías de estado sólido; potencial a largo plazo, pero aún en fase de exploración y con baja probabilidad de materialización inmediata.
Verdict: Hold; valuation is attractive but balance sheet and EV transition execution risks are high.
Main risk: Extreme leverage (ND/EBITDA 11.1) combined with the recall of 2.8 million vehicles and the tax dispute in India could further erode cash generation and market confidence.
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