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Bayerische Motoren Werke Aktiengesellschaft (BMW) Fair Value & Analysis

Consumer Cyclical · DE · Market cap €35.3B · ISIN DE0005190003

BM Bayerische Motoren Werke Aktiengesellschaft BMW · XETRA
Price€62.64
Fair Value€140.42
Upside+124.2%
Quality51/100
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Strengths

Trades 55% below our fair value of €140.42
Ranks above peers (12/14)

Risks

!Weak Growth (revenue 5y +6.2 %/yr)
!Thin margins · 5.2% net margin
!Moderate debt · negative free cash flow
!Moderate moat 52/100
Weak Growth (revenue 5y +6.2 %/yr)
Thin margins · 5.2% net margin
Moderate debt · negative free cash flow
7.55% dividend yield
Ranks above peers (12/14)
Moderate moat 52/100
Evidence: High Range €129.69 – €161.76 Share as image

Fair value as of: Aug 29, 2026

From 17 valuation models · updated today

Share price +3.9% over the past month.

A solid business, trading 55% below our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price is below even our cautious bear case (€129.69). The market is more pessimistic than our downside scenario.
  • Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

€96.83 €50.97 Fair Value €140.42 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.

How to read this chart

60‑month range €50.97 – €96.83 · fair‑value band €129.69 – €161.76 · the €62.64 price screens below the €140.42 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.

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Analysis

Bayerische Motoren Werke Aktiengesellschaft (BMW) currently trades at €62.64, while our model-based Fair Value estimate is €140.42, implying the stock looks roughly 124.2% undervalued today. The Quality Score stands at 51/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Bayerische Motoren Werke Aktiengesellschaft generated revenue of €131B at a net margin of 5.2%. Revenue declined 8.1% year over year. It earns a return on equity of 7.1%. Net debt stands at €87.4B. Fundamentals as of Aug 29, 2026

Our scenario range runs from €129.69 (bear case) to €161.76 (bull case); at €62.64, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 32% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -17% fair-value upside, at 124%, BMW screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income €128.73 €137.13 €151.57 76
ROIC Compounder €44.74 €63.06 €79.09 72
Gordon GGM €39.63 €82.39 €130.71 70
All 17 models by family
DCF Models
Owner Earnings €24.73 €69.44 €135.33 31
Earnings-Based
Graham-Dodd €80.81 €219.38 €287.51 54
Lynch FV €43.17 €61.68 €80.18 50
PEG = 1.0 €43.17 €61.68 €80.18 46
EPV €44.74 €63.06 €79.09 59
Dividend Discount
Gordon GGM €39.63 €82.39 €130.71 70
DDM Multi-Stage €39.63 €61.89 €85.55 61
Multiples
P/E Multiple €196.08 €261.44 €326.80 63
P/S Multiple €151.52 €202.02 €252.53 58
P/B Multiple €151.52 €202.02 €252.53 55
EV/EBIT €151.88 €224.24 €296.59 53
EV/EBITDA €206.98 €297.70 €388.42 54
EV/Revenue €81.14 €143.85 €206.55 43
Asset-Based
NCAV (Graham) €77.96 €104.46 €155.91 50
Economic Profit
Residual Income €128.73 €137.13 €151.57 76
ROIC Compounder €44.74 €63.06 €79.09 72
Growth Earnings
Growth-Adj P/E €154.35 €220.51 €286.66 68

Widest divergence: Growth Earnings (€220.51) versus Earnings-Based (€61.68). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 5.2 as of Jul 11, 2026
P/S ratio 0.28 P/E × margin
EPS (TTM) €11.16 price ÷ EPS = P/E 5.2
Dividend yield 7.6% payout 42.4%
Net margin 5.5% FY2025
Return on equity 7.1% TTM
More key figures
Profitability
Return on assets (EBIT) 5.4% avg 5y
Operating margin 6.6% TTM
Growth
Revenue (TTM) €131B TTM
Revenue growth (YoY) -8.1% 3y avg -2.2%
EPS growth (YoY) +21.3%
Balance sheet & cash flow
Free cash flow −€3.0B FY2025
Net debt €87.4B FY2025

Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 46 · Market factors (momentum, volatility) 31

Profitability 29
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 20
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 10
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Bayerische Motoren Werke Aktiengesellschaft develops, manufactures, and sells automobiles and motorcycles, spare parts, and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The company offers automobiles under the BMW, MINI, and Rolls-Royce brands.

Full company description

Bayerische Motoren Werke Aktiengesellschaft develops, manufactures, and sells automobiles and motorcycles, spare parts, and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The company offers automobiles under the BMW, MINI, and Rolls-Royce brands. It also develops, manufactures, and sells scooters, and motorcycles for private use and special-purpose vehicles for operational use under the BMW Motorrad brand. In addition, the company provides car rentals; credit financing; leasing that include insurance and service products; financing for dealership and customer deposits; vehicle fleet financing services for corporate car fleets under the Alphabet brand; and financial services for the automotive sector. It sells its products through retail outlet, agent, and independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Bayerische Motoren Werke Aktiengesellschaft reported revenue of €133B in FY2025 versus €111B in FY2021, a compound +4.7%/yr. Reported net income was €7.3B in FY2025, compounding −12.4%/yr from FY2021.

Growth Quality 34/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
€133B
Latest YoY
−6.3%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.2%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.2%
Avg. revenue growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+15.4% (9.7 + 5.7)
Revenue +4.7%/yr
FY21 €111B
FY22 €143B
FY23 €155B
FY24 €142B
FY25 €133B
Net income −12.4%/yr
FY21 €12.4B
FY22 €17.9B
FY23 €11.3B
FY24 €7.3B
FY25 €7.3B
Character of growth · EPS growth decomposed (2014-2025) +4.0 % p.a.
Revenue per share +6.0 pp

of which total revenue +5.5 pp · buybacks/dilution +0.5 pp

EBIT margin −1.2 pp
Tax rate +0.2 pp
Residual (interest, one-offs) −1.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Bayerische Motoren Werke Aktiengesellschaft Fair Value". https://www.fairvalue-calculator.com/stock/BMW

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Auto Manufacturers · 119 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 51 · Above median
Fair Value upside +124% · Top 25%
Return on equity (TTM) 7% · Above median
Return on assets 2% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 7% · Above median
Revenue growth -8% · Bottom 25%
Dividend yield (TTM) 7.0% · Top 25%
Debt / equity 0.62× · Higher than 75% of peers

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/E (TTM) 5.2× · Cheaper than 75% of peers
P/B 0.43× · Cheaper than 75% of peers
P/S (TTM) 0.31× · Cheaper than median
EV/EBITDA 5.5× · Cheaper than 75% of peers
PEG 0.73× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 29
FUTURE0 · sector 32
PAST28 · sector 21
HEALTH69 · sector 94
DIVIDEND100 · sector 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).

Stock Price Fair Value vs Fair Value
Toyota Motor Corporation TM $188.78 $228.25 +21%
BYD Company 81211 HK$76.90 HK$48.59 -37%
Hyundai Motor Company 005380 418,500 KRW 567,393 KRW +36%
Ferrari N.V RACE €355.80 €167.67 -53%
General Motors Company GM $86.33 $52.69 -39%
Ford Motor Company F $13.90 $11.51 -17%
Mercedes-Benz Group MBG €46.95 €106.16 +126%
Dr. Ing. h.c. F. Porsche AG P911 €43.91 €17.34 -61%
Maruti Suzuki India Limited MARUTI ₹13,875 ₹8,236 -41%
Volkswagen AG VOW3 €77.42 €248.34 +221%

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Frequently asked questions

Is Bayerische Motoren Werke Aktiengesellschaft (BMW) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of €140.42 versus a price of €62.64, about +124% (undervalued).
What is the fair value of BMW?
Our model-based fair value for Bayerische Motoren Werke Aktiengesellschaft is €140.42 (as of Aug 29, 2026), built from audited fundamentals. The current price: €62.64.
What is the quality score of BMW?
Bayerische Motoren Werke Aktiengesellschaft has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Bayerische Motoren Werke Aktiengesellschaft (BMW)?
Bayerische Motoren Werke Aktiengesellschaft reported trailing-twelve-month revenue of about €131B (latest available figure, as of Aug 29, 2026).
What is the net profit margin of BMW?
The net profit margin of Bayerische Motoren Werke Aktiengesellschaft is about 5.2%, meaning it keeps roughly 5.2% of revenue as net income. Based on the latest reported figures.
Does Bayerische Motoren Werke Aktiengesellschaft pay a dividend?
Bayerische Motoren Werke Aktiengesellschaft currently shows a dividend yield of about 5.71% relative to its recent price (as of Aug 29, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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