Porsche Automobil Holding PAH3.DE
What does Porsche Automobil Holding do?
Porsche Automobil Holding SE, headquartered in Stuttgart, is a holding company and not a traditional vehicle manufacturer. Its economic weight lies mainly in its stake in Volkswagen AG, whose brands such as Volkswagen, Audi, Škoda, Seat/Cupra, Bentley, Lamborghini, Ducati, and Porsche are relevant indirectly through this stake. The company also holds interests in companies in the areas of mobility and industrial technology.
The business is divided into the segments Core Investments and Portfolio Investments. Income comes mainly from the proportionate earnings and dividends of the investments, in particular from Volkswagen. The holding company has hardly any operating business of its own and a lean cost structure. In terms of competition, it is less comparable to carmakers than to other holding companies. Its position rests on its influence as a shareholder with a majority of voting rights at Volkswagen and on its link to the founding families Porsche and Piëch. Its market value depends heavily on the value of its investments.
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, Porsche Automobil Holding ranks below average in the group Auto Manufacturers (3.6/10). On growth, the company ranks in the middle in the group Auto Manufacturers (5.3/10). On valuation (higher = cheaper), the stock ranks among the best in the group Auto Manufacturers (9.3/10). On financial strength, Porsche Automobil Holding ranks above average in the group Auto Manufacturers (6.9/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 2.0x | 6.7x | better than 94 % |
| Trailing P/E | 81.3x | 25.9x | better than 25 % |
| PEG ratio | 0.1x | 0.6x | better than 93 % |
| Price/book | 0.2x | 1.3x | better than 85 % |
| Revenue growth | 0.0% | -0.1% | better than 55 % |
| Earnings growth | 0.0% | 0.0% | better than 50 % |
| Gross margin | 0.0% | 11.8% | better than 15 % |
| Operating margin | 0.0% | 3.1% | better than 39 % |
| Net margin | 0.0% | 0.3% | better than 45 % |
| Return on equity | 0.3% | 0.3% | better than 45 % |
| Debt/equity | 19.3% | 131.9% | better than 85 % |
| Current ratio | 11.2x | 1.2x | better than 95 % |
| Free cash flow yield | -5.5% | 0.0% | better than 28 % |
| Dividend yield | 6.0% | 6.8% | – |
| Beta | 0.93 | 0.96 | – |
Valuation: what is Porsche Automobil Holding worth?
For Porsche Automobil Holding the data currently does not allow a reliable model range (e.g. negative free cash flow or missing comparables). In this case the Pro analysis assesses the valuation qualitatively.
8 analysts, average rating “—”, average price target 35.16 EUR (+39.5%).
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
- Earnings depend largely on the results and dividend policy of Volkswagen AG as the most important investment.
- Global automotive demand and the margins of the group's brands affect investment income and valuation indirectly.
- The success and value development of portfolio investments in mobility and industrial technology influence the value of the investment portfolio.
Risks
- The strong concentration on Volkswagen makes the holding company vulnerable to its operational and strategic difficulties.
- Regulatory requirements, trade barriers, and the shift to electric mobility weigh on the automotive industry and therefore on the investments.
- Impairments on investments as well as financing and interest rate risks can noticeably affect the holding company's earnings and balance sheet.
What to look for with Porsche Automobil Holding
The discount of the market value to the intrinsic value of the investments (net asset value) is informative, since the holding company mainly holds investment value and has hardly any operating business of its own.