No. of Recommendations: 9
From Barron's (sorry, no link)
'It is VW's valuation that deserves a closer look. Even with Friday's gains, VW shares are trading for about 3.7 times estimated 2023 earnings. VW shares are actually cheaper than that: In one way, they are practically free.
VW owns roughly 75% of Porsche AG (P911.Germany), the maker of the Porsche sports car. That stake is worth $83 billion, while VW's entire market capitalization is about $80 billion.
Excluding Porsche earnings, VW generated about $16 billion in operating profit last year. That's more than the $14.5 billion operating profit General Motors (GM) earned in 2022, and GM has a market cap of about $56 billion.'
Any comments?