DRPRF (Dr Ing hc F Porsche AG) vs S&P 500 Comparison

DRPRF

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DRPRF

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DRPRF

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Dr Ing hc F Porsche AG
Glance View

Market Cap

45.6B USD

Industry

Automobiles

In the heart of Stuttgart, Germany, Dr. Ing. h.c. F. Porsche AG stands as a testament to engineering prowess and a storied automotive legacy. Founded in 1931 by Ferdinand Porsche, the company initially served as a vehicle development consultancy and engineering firm. However, it was the creation of the iconic Porsche 356 in 1948 that marked their transition into a full-fledged automobile manufacturer. Over the years, Porsche has continually intertwined precision engineering with cutting-edge technology, propelling it into the echelons of luxury sports car manufacturing. Its models—from the sleek 911, a symbol of automotive excellence and heritage, to the innovative electric Taycan—epitomize the blend of tradition and forward-thinking that the brand represents. Porsche operates within a vertically integrated business model, controlling nearly all aspects of design, production, and distribution of its vehicles. This integration, coupled with significant investment in research and development, allows Porsche to maintain control over the quality and performance of its cars. The company's revenue streams flow not just from car sales but also from a robust after-sales service segment, including parts and maintenance, which sustains customer loyalty and satisfaction. Further, Porsche Financial Services offers attractive leasing and financing solutions, enhancing its ability to capture diverse market segments. Such strategic maneuvers ensure Porsche not only remains profitable but also reinforces its position as a pinnacle of luxury automotive manufacturing worldwide.

View DRPRF Analysis

DRPRF Intrinsic Value

Undervaluation 53%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

DRPRF

vs

S&P 500

Stocks Performance
DRPRF vs S&P 500

Performance Gap
DRPRF vs S&P 500

Performance By Year
DRPRF vs S&P 500

Competitors Performance
Dr Ing hc F Porsche AG vs Peers

Dr Ing hc F Porsche AG
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DRPRF vs S&P 500

Stocks Performance DRPRF vs S&P 500

Performance Gap DRPRF vs S&P 500

Performance By Year DRPRF vs S&P 500

Competitors Performance Dr Ing hc F Porsche AG vs Peers

Dr Ing hc F Porsche AG Glance View

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DRPRF

vs

S&P 500

Stocks Performance
DRPRF vs S&P 500

Performance Gap
DRPRF vs S&P 500

Performance By Year
DRPRF vs S&P 500

Competitors Performance
Dr Ing hc F Porsche AG vs Peers

Dr Ing hc F Porsche AG
Glance View