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Volkswagen AG (VOW) Fair Value & Analysis

Consumer Cyclical · DE · Market cap €36.7B

VA Volkswagen AG VOW · XETRA
Price€76.35
Fair Value€219.00
Upside+186.8%
Quality42/100
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Expensive Growth
Thin margins · 2.1% net margin
Moderate debt · negative free cash flow
7.09% dividend yield
Ranks above peers (9/14)
Narrow moat 37/100
Evidence: High Range €212.55 – €273.75 Share as image

Fair value as of: Jul 14, 2026

From 17 valuation models · updated 24 days ago

Fair value updated Jul 14, 2026, revised from €202.16 to €219.00 (+8.3%) since Jul 5, 2026. Share price −1.5% over the past month.

Below-average quality, screening 187% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (42/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (€212.55). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

€208.12 €72.05 Fair Value €219.00 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range €72.05 – €208.12 · fair‑value band €212.55 – €273.75 · the €76.35 price screens below the €219.00 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 14, 2026.

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Analysis

Volkswagen AG (VOW) currently trades at €76.35, while our model-based Fair Value estimate is €219.00, implying the stock looks roughly 186.8% undervalued today. We read business quality at 42/100 (below-average 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, Volkswagen AG generated revenue of €320B at a net margin of 2.1%. Revenue declined 2.5% year over year. It earns a return on equity of 3.1%. Net debt stands at €240B. Fundamentals as of Jul 14, 2026

Our scenario range runs from €212.55 (bear case) to €273.75 (bull case); at €76.35, 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 31% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 25% fair-value upside, at 187%, VOW 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 BearBaseBull Evidence
Highest evidence
Residual Income €261.93 €262.91 €242.57 76
ROIC Compounder €104.88 €151.40 €192.10 72
Gordon GGM €81.69 €169.85 €269.45 70
All 17 models by family
DCF Models
Owner Earnings €141.72 €300.85 €536.26 31
Earnings-Based
Graham-Dodd €99.34 €273.96 €359.69 54
Lynch FV €54.61 €78.01 €101.41 50
PEG = 1.0 €54.61 €78.01 €101.41 46
EPV €104.88 €151.40 €192.10 59
Dividend Discount
Gordon GGM €81.69 €169.85 €269.45 70
DDM Multi-Stage €81.69 €128.38 €177.83 61
Multiples
P/E Multiple €219.12 €292.16 €365.20 63
P/S Multiple €186.25 €248.34 €310.42 58
P/B Multiple €186.25 €248.34 €310.42 55
EV/EBIT €286.12 €439.57 €593.02 53
EV/EBITDA €768.73 €1,083 €1,397 54
EV/Revenue €136.08 €269.07 €402.06 43
Asset-Based
NCAV (Graham) €173.55 €232.56 €347.10 50
Economic Profit
Residual Income €261.93 €262.91 €242.57 76
ROIC Compounder €104.88 €151.40 €192.10 72
Growth Earnings
Growth-Adj P/E €174.83 €249.76 €324.69 68

Widest divergence: DCF Models (€300.85) versus Earnings-Based (€78.01). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) €320B
Revenue growth (YoY) -2.5%
Net margin 2.1%
Return on equity 3.1%
Free cash flow −€9.3B FY2025
P/E ratio 7.7
More key figures
Operating margin 4.4%
EPS (TTM) €12.21
Dividend yield 7.1%
EPS growth (YoY) -29.5%
Net debt €240B FY2025

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 44 · Market factors (momentum, volatility) 35

Profitability 24
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 34
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 69
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 18
Distance to the 52-week high (market factor)
Net Issuance 82
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.

About the company

Volkswagen AG manufactures automobiles and commercial vehicles in Europe, Germany, North America, South America, the Asia-Pacific, and internationally. It operates through three segments: Passenger Cars and Light Commercial Vehicles; Commercial Vehicles; and Financial Services.

Full company description

Volkswagen AG manufactures automobiles and commercial vehicles in Europe, Germany, North America, South America, the Asia-Pacific, and internationally. It operates through three segments: Passenger Cars and Light Commercial Vehicles; Commercial Vehicles; and Financial Services. The Passenger Cars and Light Commercial Vehicles segment develops vehicles, engines and motors, vehicle software, and vehicle batteries; produces and sells passenger cars and light commercial vehicles, and the parts. This segment also offers compact cars, luxury vehicles, and motorcycles, as well as mobility solutions. The Commercial Vehicles segment engages in the development of vehicles, engines, and motors; production and sale of trucks and buses, parts, and related services. The Financial Services segment engages in the dealership and customer financing, leasing, direct banking, and insurance activities; and provision of fleet management, and mobility services. In addition, the company is involved in the large-bore diesel engines, turbomachinery, and propulsion components businesses. It sells its products under the Volkswagen Passenger Cars, "koda, SEAT/CUPRA, Volkswagen Commercial Vehicles, Audi, Lamborghini, Bentley, Ducati, Porsche, Scania, MAN, Volkswagen Truck & Bus, TRATON, and Bugatti Rimac, and international commercial vehicles brands to individual, corporate, and fleet customers. The company was founded in 1937 and is headquartered in Wolfsburg, Germany. Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Volkswagen AG reported revenue of €322B in FY2025 versus €250B in FY2021, a compound +6.5%/yr. Reported net income was €7.3B in FY2025, compounding −16.9%/yr from FY2021.

Growth Quality 37/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
€322B
Latest YoY
−0.8%
Avg. growth/yr (3Y)
+4.9%
Avg. growth/yr (5Y)
+7.6%
Avg. growth/yr (25Y)
+5.6%
Revenue +6.5%/yr
FY21 €250B
FY22 €279B
FY23 €322B
FY24 €325B
FY25 €322B
Net income −16.9%/yr
FY21 €15.4B
FY22 €15.5B
FY23 €16.5B
FY24 €11.4B
FY25 €7.3B

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Cite: Fair Value Calculator (2026). "Volkswagen AG Fair Value". https://www.fairvalue-calculator.com/stock/VOW

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 42 · Below median
Fair Value upside +187% · Top 25%
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 2% · Above median
Operating margin (TTM) 4% · Above median
Revenue growth -3% · Below median
Dividend yield (TTM) 7.1% · Top 25%
Debt / equity 0.73× · Higher than 75% of peers

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/E (TTM) 6.0× · Cheaper than 75% of peers
P/B 0.24× · Cheaper than 75% of peers
P/S (TTM) 0.13× · Cheaper than 75% of peers
EV/EBITDA 5.9× · Cheaper than median
PEG 0.68× · 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.

VALUE 100 · sector 26
FUTURE 0 · sector 32
PAST 12 · sector 17
HEALTH 64 · sector 94
DIVIDEND 100 · sector 46

Insider activity: 40/100

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
Toyota Motor Corporation TM $179.76 $224.63 +25%
BYD Company 81211 HK$80.55 HK$50.85 -37%
Hyundai Motor Company 005380 425,000 KRW 616,918 KRW +45%
General Motors Company GM $77.72 $56.93 -27%
Bayerische Motoren Werke Aktiengesellschaft BMWM5N 1,909 MXN 2,944 MXN +54%
Ferrari N.V RACE $376.64 $228.05 -39%
Ford Motor Company F C$11.86 C$4.00 -66%
Mercedes-Benz Group BENZ C$20.44 C$35.15 +72%
Maruti Suzuki India Limited MARUTI ₹13,803 ₹8,236 -40%
Kia Corporation 000270 145,000 KRW 350,994 KRW +142%

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Frequently asked questions

Is Volkswagen AG (VOW) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of €219.00 versus a price of €76.35, about +187% (undervalued).
What is the fair value of VOW?
Our model-based fair value for Volkswagen AG is €219.00 (as of Jul 14, 2026), built from audited fundamentals. The current price is €76.35.
What is the quality score of VOW?
Volkswagen AG has a Quality Score of 42/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Volkswagen AG (VOW)?
Volkswagen AG reported trailing-twelve-month revenue of about €320B (latest available figure, as of Jul 14, 2026).
What is the net profit margin of VOW?
The net profit margin of Volkswagen AG is about 2.1%, meaning it keeps roughly 2.1% of revenue as net income. Based on the latest reported figures.
Does Volkswagen AG pay a dividend?
Volkswagen AG currently shows a dividend yield of about 7.09% relative to its recent price (as of Jul 14, 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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