Volkswagen/Porsche SE

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Volkswagen/Porsche SE

26 June 2020

Based on recent estimates, you can currently invest in Volkswagen at a price-earnings ratio of just 4. The company is valued as if it was going out of business – when actually, it's probably just about to make a major leap forward!

You can get in at this cheap valuation if you know of the indirect route to buying Volkswagen stock. It's a backdoor route that involves buying into Porsche SE – a company that many believe produces sport cars, but which has never actually produced a single car.

The convoluted triple-layer holding structure Volkswagen, Porsche SE, and Porsche AG is a veritable jamboree bag for investors. For example, Volkswagen's 100% stake in Porsche AG, the car brand, is worth about as much as the entire Volkswagen market cap. And if you buy into it through Porsche SE, you get a 32% discount on top of it all.

Why should investors care?

The Porsche/Piëch automotive dynasty has locked up most of its wealth in a 50%+ voting stake in Volkswagen, and it keeps buying more stock (including just recently). They are dead serious about unlocking Volkswagen's hidden potential, and view Volkswagen as a potential moneymaking machine unlike any other carmaker.

What exactly makes the multi-billionaire clan believe Volkswagen is such a great investment, and what are the key factors that could drive the stock price upwards?

My latest report summarises the investment thesis by looking at five major factors, and gives up-to-date estimates for Volkswagen post-coronavirus.

It doesn't matter whether you've already read my January 2019 report or not. Volkswagen/Porsche SE is an investment case that teaches us a lot about what's going on in the world – and it's probably an investment to stash away for the next couple of years.

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l  Report updates

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7 April 2021

Report Update (PDF - 0.4MB)

3 March 2021

Report Update (PDF - 0.9MB)

19 February 2021

Report Update (PDF - 0.9MB)

28 July 2020

Report Update (PDF - 0.6MB)

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