Volkswagen/Porsche SE

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Volkswagen/Porsche SE

26 June 2020

What readers said about this report

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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|  What readers said about this report

Markus W.
October 2021

Overall, the Porsche share has in fact panned out considerably better this year than the VW share, about whose performance one cannot complain either.

Mark T.
June 2021

I enjoyed your report on Porsche SE, so on a similar line I have my own tip for you, copy-cat straight from Mr. Moonish Pabrai.

Günter E.
April 2021

Twitter has been a joy so far, Porsche even more!

Milind D.
April 2021

I am a subscriber to Undervalued Shares and thought to drop a message to you of praise for the way you write your reports. For any investor looking to invest the metrics and financials tend to supersede the narrative of investing in a particular company. I especially liked the way you described the narrative for (company name hidden by and in a way Argentina and have also liked the narrative that you have written about investing in Volkswagen/Porsche.

Lars K.
April 2021

Great Website – I wanted to write for some time – really like your write-ups and have invested in a few of the ideas with success (Porsche, Fiverr – albeit I should have entered earlier) while for others I am still waiting (Helios, Bespoke Capital). … Sometimes I would with that you dive a bit deeper into valuation – but that being said – a lot of people spend a lot of time on spreadsheets and not enough on the catalysts.

David S.
April 2021

It is really great that you were right on point with the Porsche AG and Gazprom shares!

Matthias B.
March 2021

Once again your timing with Porsche/VW was excellent! -- Congratulations!

Michal B.
March 2021

I want to sent a thank you for the urge to buy VW/Porsche u sent few days ago. I was not sure but "Must Own" conviced me to buy a little just to test it 🙂

Marko H.
February 2021

Regardless of whether it's Twitter, Porsche, Gazprom or (company name hidden by, your reports are really great and regularly get me in front of the wave.

Matthias P.
July 2020

I’ve only taken a look at your VW / Porsche report just now, brilliantly written as always!!!!

Moritz B.
June 2020

Ps. The Porsche report was excellent! 🙂

Julius G.
June 2020

I find the report on Volkswagen and Porsche SE very interesting. I'd always been very convinced of Tesla and thought the days of German carmakers were long gone, but the numbers mentioned and above all the sentence "Who will buy a Tesla in Brazil or Mexico" (or something like that) made me think.

Andrew H.
June 2020

Fascinating update Swen. … I've put this on my watchlist.

l  Report updates

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17 October 2022

Report Update (PDF - 0.9MB)

15 March 2022

Report Update (PDF - 0.6MB)

3 November 2021

Report Update (PDF - 0.5MB)

9 August 2021

Report Update (PDF - 0.2MB)

10 June 2021

Report Update (PDF - 0.3MB)

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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