VOW3 GR

Volkswagen AG

Industrial/Transportation, Event Driven/Special Sit


Presented:04/06/2016
Price:€103.50
Cap:$57.79B
Current Price:€91.78
Cap:$51.24B

Presented

Date04/06/2016
Price€103.50
Market Cap$57.79B
Ent Value$166.84B
P/E Ratio8.25x
Book Value€196.34
Div Yield0.05%
Shares O/S501.30M
Ave Daily Vol1,530,850
Short IntN/A

Current

Price€91.78
Market Cap$51.24B
Volkswagen AG engages in the manufacture of automobiles. It operates through following segments: Passenger Cars, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars segment covers the development of vehicles and engines, the production and sale of passenger cars and light commercial vehicles, and the corresponding genuine parts business. The Commercial Vehicles segment comprises the development, production and sale of light commercial vehicles, trucks and buses, the corresponding genuine parts business and related services. The Power Engineering segment consists of the development and production of large-bore diesel engines, turbo compressors, industrial turbines and chemical reactor systems, as well as the production of gear units, propulsion components and testing systems. The Financial Services segment engages in dealer and customer financing, leasing, banking and insurance activities, as well as fleet management. The company was founded in May 28, 1937 and is headquartered in Wolfsburg, Germany.

Publicly traded companies mentioned herein: Volkswagen AG (VOW3 GR, VOW)

Highlights

The presenter is long shares of Volkswagen (VOW3 GR, “VOW”), expecting a smaller impact from the “Dieselgate” crisis than the market assumes as well as stronger fundamental performance moving forward due to a combination of new management and more disciplined pricing practices leading to pricing and margin improvements. He is modeling lower liability from fines, penalties, and buybacks, which when coupled with VOW’s cash generation ability, should serve to minimize the impact of Dieselgate.

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Idea Discussion

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