Volkswagen AG
OTC:VWAPY
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (4.5), the stock would be worth $7.2 (31% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 6.6 | $10.41 |
0%
|
| 3-Year Average | 4.5 | $7.2 |
-31%
|
| 5-Year Average | 5.2 | $8.19 |
-21%
|
| Industry Average | 6.8 | $10.72 |
+3%
|
| Country Average | 15.5 | $24.68 |
+137%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$95.3B
|
/ |
Jan 2026
€14.4B
|
= |
|
|
$95.3B
|
/ |
Dec 2026
€16.7B
|
= |
|
|
$95.3B
|
/ |
Dec 2027
€20.2B
|
= |
|
|
$95.3B
|
/ |
Dec 2028
€22.1B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| DE |
|
Volkswagen AG
OTC:VWAPY
|
45.6B USD | 6.6 | 6.8 | |
| US |
|
Tesla Inc
NASDAQ:TSLA
|
1.4T USD | 293 | 384.3 | |
| JP |
|
Toyota Motor Corp
TSE:7203
|
41.6T JPY | 11.6 | 11.3 | |
| CN |
|
BYD Co Ltd
SZSE:002594
|
925.7B CNY | 28.8 | 28.9 | |
| KR |
|
Hyundai Motor Co
KRX:005380
|
143.4T KRW | 22.6 | 15.2 | |
| DE |
|
Mercedes Benz Group AG
MIL:MBG
|
75.3B EUR | 6.1 | 4.9 | |
| DE |
|
Daimler AG
XETRA:DAI
|
67.5B EUR | 5.4 | 3.7 | |
| US |
|
General Motors Co
NYSE:GM
|
71.5B USD | 54.6 | 22.4 | |
| IT |
|
Ferrari NV
MIL:RACE
|
60B EUR | 28.6 | 37.3 | |
| DE |
|
Bayerische Motoren Werke AG
XETRA:BMW
|
49.7B EUR | 11 | 6.8 | |
| US |
|
Ford Motor Co
NYSE:F
|
53.8B USD | 4 535.2 | -6.5 |
Market Distribution
| Min | 0.1 |
| 30th Percentile | 10.6 |
| Median | 15.5 |
| 70th Percentile | 23.1 |
| Max | 672.9 |
Other Multiples
Volkswagen AG
Glance View
In the heart of the German automotive industry, Volkswagen AG stands as a colossus, embodying both tradition and innovation. Born in the wake of the 1930s as a people's car manufacturer, Volkswagen's journey is one of evolution and adaptation. The company runs on a multi-brand strategy, with marquee names like Audi, Porsche, SEAT, and Škoda under its umbrella. This diverse portfolio plays a significant role in Volkswagen's strategy, as it allows the company to serve varied customer needs, from luxury aficionados to budget-minded consumers. At the core of its operations, Volkswagen focuses on design, production, and distribution of a broad range of vehicles, aligning them with trends in sustainability and technology. With significant investments in electric vehicles and autonomous driving, Volkswagen aims to redefine mobility and assert its leadership in a rapidly changing automotive landscape. Financially, Volkswagen AG's substantial revenue streams flow from the sale of vehicles, complemented by financial services and a strong presence in the automotive aftermarket. The company leverages economies of scale by producing millions of vehicles annually across its global production facilities, which helps maintain competitive pricing while preserving quality. These sales are bolstered by its comprehensive financing packages and leasing options, reinforcing customer loyalty and expanding its customer base. Moreover, Volkswagen's venture into new mobility services and technology solutions, such as car-sharing and ride-hailing, further diversifies its income sources. Balancing tradition with futuristic endeavors, Volkswagen continues to sustain its robust financial performance while steering towards a more electrified and sustainable future.