Volkswagen Operating Margin vs. Current Valuation
| VOW3 Stock | EUR 80.36 0.48 0.59% |
For Volkswagen profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Volkswagen to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Volkswagen AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Volkswagen's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Volkswagen AG over time as well as its relative position and ranking within its peers.
Volkswagen |
Volkswagen AG Current Valuation vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Volkswagen's current stock value. Our valuation model uses many indicators to compare Volkswagen value to that of its competitors to determine the firm's financial worth. Volkswagen AG is rated first in operating margin category among its peers. It is rated first in current valuation category among its peers reporting about 2,278,009,975,685 of Current Valuation per Operating Margin. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Volkswagen's earnings, one of the primary drivers of an investment's value.Volkswagen Current Valuation vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Volkswagen |
| = | 0.09 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Volkswagen |
| = | 201.15 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Volkswagen Current Valuation vs Competition
Volkswagen AG is rated first in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Auto Manufacturers industry is at this time estimated at about 232.14 Billion. Volkswagen totals roughly 201.15 Billion in current valuation claiming about 87% of stocks in Auto Manufacturers industry.
Volkswagen Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Volkswagen, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Volkswagen will eventually generate negative long term returns. The profitability progress is the general direction of Volkswagen's change in net profit over the period of time. It can combine multiple indicators of Volkswagen, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Volkswagen AG manufactures and sells automobiles primarily in Europe, North America, South America, and the Asia-Pacific. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE. VOLKSWAGEN operates under Auto Manufacturers classification in Germany and is traded on Frankfurt Stock Exchange. It employs 632825 people.
Volkswagen Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Volkswagen. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Volkswagen position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Volkswagen's important profitability drivers and their relationship over time.
Use Volkswagen in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Volkswagen position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Volkswagen will appreciate offsetting losses from the drop in the long position's value.Volkswagen Pair Trading
Volkswagen AG Pair Trading Analysis
The ability to find closely correlated positions to Volkswagen could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Volkswagen when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Volkswagen - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Volkswagen AG to buy it.
The correlation of Volkswagen is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Volkswagen moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Volkswagen AG moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Volkswagen can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Volkswagen position
In addition to having Volkswagen in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Housewares Thematic Idea Now
Housewares
Companies making housewares accessories and providing houseware services. The Housewares theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Housewares Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in Volkswagen Stock
To fully project Volkswagen's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Volkswagen AG at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Volkswagen's income statement, its balance sheet, and the statement of cash flows.