Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Volkswagen AG: Layoffs on the Horizon? Breaking Down the Operational Challenges & Valuation Risks!
Volkswagen AG’s first-half 2024 results showcased resilience amid rising competitive pressures, with revenue climbing 1.6% to EUR 159 billion and BEV sales surging 47% in China. Luxury brands Lamborghini and Bentley thrived with impressive margins, but the core Volkswagen Brand struggled, with margins slipping below 1%, signaling an urgent need for cost discipline. VW’s aggressive restructuring, including plans to dismantle long-standing job guarantees at six key German plants, sets the stage for potential layoffs by 2025. Labor unrest looms, with wage renegotiations underway and possible strikes in November, casting a shadow over VW’s near-term operational outlook. Despite these challenges, Volkswagen’s strategic initiatives—particularly its product offensive and “In China, For China” strategy—show promise. The launch of over 30 new models and partnerships with Xiaopeng and Rivian to develop electric and software-driven architectures reflect VW’s long-term focus on electrification and cost competitiveness. However, CARIAD’s EUR 1.2 billion loss and pressure from supply chain constraints in Audi continue to weigh on profitability. Investors should closely watch labor negotiations and restructuring efforts, which could impact VW’s ability to navigate these challenges. Does VW have the resilience to turn the tide, or will cost pressures drag on its recovery? We delve into Major Drivers, Our perspective/thesis & follow up to our Initiation of Coverage :Earnings Review H124, Forecasts,DCF, Valuation, Peer Analysis, ESG & Risks
