Mercedes-Benz MBG.DE
What does Mercedes-Benz do?
Mercedes-Benz is a Stuttgart-based premium and luxury car manufacturer that develops, produces and sells passenger cars and vans worldwide. Its brands include Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach and the G-Class. The offering is complemented by spare parts, accessories and digital services, such as those related to charging electric vehicles.
The group is divided into the segments Cars, Vans and Financial Services. Revenue arises mainly from vehicle sales to private and business customers and through dealer networks. Financial Services earns interest and fees from financing, leasing, insurance, fleet management as well as subscription and rental offerings. Competitively, the company faces mainly other premium manufacturers such as BMW, Audi and, increasingly, Tesla as well as Chinese providers. Its positioning rests on brand strength, high price levels, technology and a global sales and service network.
Score profile
Rank vs. Auto Manufacturers (10 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Mercedes-Benz ranks above average in the group Auto Manufacturers (7.4/10). On growth, the company ranks in the middle in the group Auto Manufacturers (5.5/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Auto Manufacturers (5.6/10). On financial strength, Mercedes-Benz ranks in the middle in the group Auto Manufacturers (5.6/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 7.0x | 6.7x | better than 44 % |
| Trailing P/E | 7.3x | 25.9x | better than 75 % |
| PEG ratio | 0.6x | 0.6x | better than 50 % |
| EV/EBITDA | 9.0x | 9.6x | better than 79 % |
| Price/sales | 0.3x | 0.3x | better than 50 % |
| Price/book | 0.4x | 1.3x | better than 65 % |
| Revenue growth | -4.5% | -0.1% | better than 25 % |
| Earnings growth | 34.4% | 0.0% | better than 85 % |
| Gross margin | 16.7% | 11.8% | better than 75 % |
| Operating margin | 4.7% | 3.1% | better than 61 % |
| Net margin | 4.2% | 0.3% | better than 85 % |
| Return on equity | 5.9% | 0.3% | better than 75 % |
| Debt/equity | 102.7% | 131.9% | better than 65 % |
| Current ratio | 1.3x | 1.2x | better than 65 % |
| Free cash flow yield | -2.2% | 0.0% | better than 39 % |
| Dividend yield | 8.5% | 6.8% | – |
| Payout ratio | 61.4% | 61.4% | – |
| Beta | 0.74 | 0.96 | – |
Valuation: what is Mercedes-Benz worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Mercedes-Benz a model range of 39.98 EUR to 49.96 EUR per share.
20 analysts, average rating “Buy”, average price target 51.06 EUR (+23.4%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Sales of high-margin vehicles in the luxury and upper-class segments largely determine revenue and earnings.
- Brand strength enables price realization and a favorable model and equipment mix.
- Financial Services provides supplementary, more stable income and customer loyalty through financing and leasing.
Risks
- Demand for premium vehicles is sensitive to the economy, interest rate levels and consumer sentiment, especially in China and Europe.
- The shift to electric mobility and software requires high investment and carries competitive and technology risks.
- Tariffs, trade conflicts, regulation, raw material prices and supply chains may noticeably weigh on costs and sales.
What to look for with Mercedes-Benz
The operating margin of the Cars segment is particularly meaningful, as it shows price realization, model mix and cost discipline in the core business.