Volkswagen is the lowest-rated stock in the dax. A price-to-earnings ratio of four means that within four years VW should generate as much profit as the company as a whole is valued on the stock market. The shares of Dax companies are rated three times as high on average.
There are industry-specific reasons for the discount on VW shares. Investors doubt the ability of the German auto industry to save its market leadership in the e-car age. But there are also company-specific reasons. In New York and London, deep-pocketed market participants are out of business PorscheVW and Lower Saxony are hard to place.
Local investors also note that family companies are often problematic in themselves, but that the additional state participation in VW tops it all off. Activist shareholders cannot shake the VW model, since in the Dax only the advantages of the shares of VW, Porsche AG and Porsche SE are tradable. The ordinary shares with voting rights are held firmly in the hands of the Porsche, Piëch, Lower Saxony and Qatar families.
So far, the company hasn’t fared badly. For investors, on the other hand, things have looked bad over the past ten years. The corporation couldn’t care less. Recently, new capital requirements were mainly covered by Porsche Holding and from Qatar. How long will this go well? The markets put a big question mark.