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Volkswagen AG VZO O.N. (VOW3) Fair Value & Analysis

Consumer Cyclical · DE · Market cap €36.7B · ISIN DE0007664039

What is Volkswagen AG VZO O.N. really worth?

VA Volkswagen AG VZO O.N. VOW3 · XETRA
Price€81.30
Fair Value€248.34
Upside+205.5%
Quality46/100

Below-average quality, trading 67% below our fair value of €248.34.

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Strengths

Ranks above peers (9/14)

Risks

!Expensive Growth (revenue 5y +7.6 %/yr)
!Thin margins · 2.1% net margin
!Moderate debt · negative free cash flow
!Narrow moat 33/100
!Evidence only low, so the estimate is less certain
!Weak on past: 12 out of 100

For context

·6.47% dividend yield
Evidence: Low Range €241.03 – €310.42

Fair value as of: Aug 29, 2026

From 17 valuation models · updated 6 days ago

Share price +6.9% over the past month.

What runs behind every stock

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

What matters now

  • The price is below even our cautious bear case (€241.03). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (46/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

€131.66 €69.94 Fair Value €248.34 Jul 2021 Sep 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 €69.94 – €131.66 · fair‑value band €241.03 – €310.42 · the €81.30 price screens below the €248.34 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

Volkswagen AG VZO O.N. (VOW3) currently trades at €81.30, while our model-based Fair Value estimate is €248.34, implying the stock looks roughly 67.3% undervalued today. The Quality Score stands at 46/100 (below-average quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of €300.85 per share, and 15 of the 17 models we run sit above the €81.30 price. Bear case: the Earnings-Based group reads lowest at €78.01, and 2 of the 17 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Volkswagen AG VZO O.N. 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 Aug 29, 2026

Our scenario range runs from €241.03 (bear case) to €310.42 (bull case); at €81.30, 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 26% 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 205%, VOW3 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €4.70 per share. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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 best evidence €261.93 €262.91 €242.57 75
Owner Earnings €141.72 €300.85 €536.26 72
EPV €104.88 €151.40 €192.10 72
All 17 models by family
DCF Models
Owner Earnings €141.72 €300.85 €536.26 72
Earnings-Based
Graham-Dodd €99.34 €273.96 €359.69 62
Lynch FV €54.61 €78.01 €101.41 58
PEG = 1.0 €54.61 €78.01 €101.41 55
EPV €104.88 €151.40 €192.10 72
Dividend Discount
Gordon GGM €81.69 €169.85 €269.45 64
DDM Multi-Stage €81.69 €128.38 €177.83 64
Multiples
P/E Multiple €241.03 €321.38 €401.72 61
P/S Multiple €186.25 €248.34 €310.42 56
P/B Multiple €186.25 €248.34 €310.42 53
EV/EBIT €286.12 €439.57 €593.02 63
EV/EBITDA €696.19 €986.34 €1,276 65
EV/Revenue €136.08 €269.07 €402.06 50
Asset-Based
NCAV (Graham) €173.55 €232.56 €347.10 52
Economic Profit
Residual Income best evidence €261.93 €262.91 €242.57 75
ROIC Compounder €104.88 €151.40 €192.10 71
Growth Earnings
Growth-Adj P/E €190.68 €272.39 €354.11 66

Widest divergence: DCF Models (€300.85) versus Earnings-Based (€78.01). Highest evidence: Residual Income (75).

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Key figures & financial health

P/E ratio 7.5 as of May 31, 2026
P/S ratio 0.17 P/E × margin
EPS (TTM) €12.21 price ÷ EPS = P/E 7.5
Dividend yield 6.5% payout 43.1%
Net margin 2.3% FY2025
Return on equity 3.1% TTM
More key figures
Profitability
Return on assets (EBIT) 3.5% avg 5y
Operating margin 4.4% TTM
Growth
Revenue (TTM) €320B TTM
Revenue growth (YoY) −2.5% 3y avg +4.9%
EPS growth (YoY) −29.5%
Balance sheet & cash flow
Free cash flow −€9.3B FY2025
Net debt €240B FY2025

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

Quality Score breakdown

Overall quality 46/100

Of which business quality 44 · Market factors (momentum, volatility) 41

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 66
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 28
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.

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

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 VZO O.N. 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. 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.
+4.9%
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.
+7.6%
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.
+5.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.
+5.3% (−1.2 + 6.5)
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
Character of growth · EPS growth decomposed (2014-2025) +4.0 % p.a.
Revenue per share +4.9 %

of which total revenue +4.9 % · buybacks/dilution −0.1 %

EBIT margin +1.8 %
Tax rate +0.0 %
Residual (interest, one-offs) −2.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Volkswagen AG VZO O.N. Fair Value". https://www.fairvalue-calculator.com/stock/VOW3

Recent news

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

Peer Group

Auto Manufacturers · 115 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 46 · Below median
Fair Value upside +200% · 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) 6.5% · Top 25%
Debt / equity 0.73× · Higher than 75% of peers

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/E (TTM) 7.5× · 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 6.0× · Cheaper than median
PEG 0.68× · Cheaper than median

Strength profile in five axes (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 24
FUTURE0 · sector 27
PAST12 · sector 22
HEALTH64 · sector 94
DIVIDEND100 · sector 51

Insider activity: 35/100

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

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 €355.50 €167.67 −53%
General Motors Company GM $86.27 $52.69 −39%
Ford Motor Company F $13.88 $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 ₹12,694 ₹8,236 −35%
Bayerische Motoren Werke Aktiengesellschaft BMW €62.64 €140.42 +124%

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Frequently asked questions

Is Volkswagen AG VZO O.N. (VOW3) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of €248.34 versus a price of €81.30, about +205% upside (undervalued).
What is the fair value of VOW3?
Our model-based fair value for Volkswagen AG VZO O.N. is €248.34 (as of Aug 29, 2026), built from audited fundamentals. The current price: €81.30.
What is the quality score of VOW3?
Volkswagen AG VZO O.N. has a Quality Score of 46/100. 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 Volkswagen AG VZO O.N. (VOW3)?
Volkswagen AG VZO O.N. reported trailing-twelve-month revenue of about €320B (latest available figure, as of Aug 29, 2026).
What is the net profit margin of VOW3?
The net profit margin of Volkswagen AG VZO O.N. is about 2.1%, meaning it keeps roughly 2.1% of revenue as net income. Based on the latest reported figures.
Does Volkswagen AG VZO O.N. pay a dividend?
Volkswagen AG VZO O.N. currently shows a dividend yield of about 6.47% relative to its recent price (as of Aug 29, 2026).
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