Risk Warning
This article does not constitute investment advice or a purchase recommendation. It is intended to stimulate discussion and can be a starting point for further research.
Volkswagen share price
The car manufacturer’s course is currently 1.4 percent higher than a week ago. The price has risen by 0.3 percent – the share is now listed at 113.8 euros. The share price performed worse than the DAX in the past week, which rose 2.56 percent. Compared to the previous year, the share is clearly in the red at 20 percent. Since the beginning of the year, VW shares have lost around 5.2 percent in value.
VW share momentum
VW stock momentum is 99.18 for the past 14 days. Values above 100 indicate a positive trend, while values below 100 signal a negative trend. Momentum shows that VW stock has had a rather negative trend over the past two weeks.
Relative Strength: Is VW Stock Undervalued?
The relative strength of VW stock stands at 0.55 on a seven-day basis. That means the stock has gained less than the benchmark over the past week. According to Wallace Wilder’s Relative Strength Index (RSI), VW shares are at 18.67. Values above 70 are considered overbought and therefore overvalued, values below 30 are considered oversold and therefore undervalued. According to this approach, the VW share would be undervalued.
VW share price/earnings ratio
In the long term, only companies that make solid profits are successful on the stock market. An important indicator of this is the price-earnings ratio (P/E). The lower the P/E ratio, the cheaper a stock is. Volkswagen recently reported earnings per share of 24 euros. Based on the current price of EUR 113.76, the P/E ratio is 4.74. This makes the VW share very cheap.
Number of VW shares
There are currently 206,205,445 VW shares. At the current exchange rate, the company is worth 62.38 billion euros. The stock exchange turnover was 208,193 shares. On average, 926,150 shares are traded per trading day.
Conclusion: Should you buy VW shares now?
Whether VW shares are a good investment depends on many factors. In addition to technical indicators and fundamental data, other factors also play a role. VW is just as dependent on the development of the automotive industry as it is on the quality of the management around CEO Oliver Blume.
As has now become known, a Volkswagen supplier has been hit by the floods in Slovenia – which could lead to a standstill of the assembly lines in some VW plants. The impending loss of production can have a negative impact on the balance sheet and thus also on the share price.
More: VW expects failures due to Slovenia floods
HB editors