BMW GR

Bayerische Motoren Werke AG

Industrial/Transportation


Presented:12/03/2019
Price:€71.81
Cap:$52.60B
Current Price:€75.28
Cap:$52.56B

Presented

Date12/03/2019
Price€71.81
Market Cap$52.60B
Ent Value$163.16B
P/E Ratio9.57x
Book Value€87.48
Div Yield4.87%
Shares O/S657.60M
Ave Daily Vol1,509,635
Short IntN/A

Current

Price€75.28
Market Cap$52.56B
Bayerische Motoren Werke AG engages in the manufacture and sale of automobiles and motorcycles. It operates through the following business segments: Automotive, Motorcycles, Financial Services, and Other Entities. The Automotive segment develops, manufactures, assembles, and sells cars and off-road vehicles, under the following brands: BMW, MINI, and Rolls-Royce, as well as spare parts and accessories. The Motorcycles segment focuses on the premium segment. The Financial Services segment offers credit financing, leasing and other services to retail customers. The Other Entities segment includes holding and group financing activities. The company was founded on March 6, 1916 and is headquartered in Munich, Germany.

Publicly traded companies mentioned herein: Bayerische Motoren Werke AG (BMW GR), Brilliance China Automotive Holdings Ltd (1114 HK), Volkswagen AG (VOW GR)

Highlights

The presenter is long shares of Bayerische Motoren Werke (BMW GR), and sees the German automaker as undervalued at its current €72 share price / €45B market cap. BMW has a strong balance sheet, a growing financial services business, and the auto business has weathered headwinds well, both in the last year as well as during the ‘08/’09 financial crisis. As BMW’s financial services business continues to grow and auto business has “floored”, he models BMW trading at 6x his EBIT estimate, growing it’s market cap from €45B to €75B.

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Idea Discussion

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