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Jun 06, 2023

Volkswagen AG : Back on an important level

● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.

● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.

● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.

● The company is in a robust financial situation considering its net cash and margin position.

● Its low valuation, with P/E ratio at 3.75 and 3.79 for the ongoing fiscal year and 2024 respectively, makes the stock pretty attractive with regard to earnings multiples.

● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.07 for the 2023 fiscal year.

● The company appears to be poorly valued given its net asset value.

● The company has a low valuation given the cash flows generated by its activity.

● The company is one of the best yield companies with high dividend expectations.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● Sales forecast by analysts have been recently revised upwards.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

● The group usually releases upbeat results with huge surprise rates.

● The company's earnings growth outlook lacks momentum and is a weakness.

● Over the past twelve months, analysts' opinions have been revised negatively.

● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.

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