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VOW:XETRVolkswagen AG Analysis

Data as of 2026-05-23 - not real-time

€89.68

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Volkswagen’s share price sits below its 20‑day and 50‑day moving averages and is also under the 200‑day trend line, signaling a bearish technical backdrop, while the MACD histogram has turned positive and the RSI hovers in the mid‑50s, suggesting limited momentum but no oversold condition. Volume has been on a downtrend, and the market sentiment index reads in the “Extreme Greed” zone, yet the stock still trades near the identified support level with a sizable upside potential relative to the current resistance. Fundamentally, the company is trading at a very low P/E and P/B, delivers a dividend yield approaching 6%, and maintains a payout ratio just above 50%, indicating a sustainable dividend profile backed by strong operating and free cash flow. The balance sheet shows ample cash against a high absolute debt load, but the debt‑to‑equity ratio is elevated, reflecting the capital‑intensive nature of the auto industry. Analysts’ consensus is a “Buy” with a mean target price well above today’s level, implying a 20%+ upside. Overall, the valuation appears markedly undervalued, the dividend looks sustainable, and the long‑term growth narrative around electrification and diversified services supports a positive outlook.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Bearish technical positioning below key moving averages
  • Decreasing volume trend
  • Support level provides downside buffer

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Significant valuation gap (low P/E, P/B)
  • Attractive dividend yield with sustainable payout
  • Analyst target price implies strong upside

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Strategic shift toward electric vehicles and mobility services
  • Robust cash generation and manageable dividend policy
  • Undervalued multiples relative to long‑term earnings potential

Key Metrics & Analysis

Financial Health

Revenue Growth-2.50%
Profit Margin2.12%
P/E Ratio7.3
ROE3.10%
ROA1.29%
Debt/Equity137.09
P/B Ratio0.3
Op. Cash Flow€17.2B
Free Cash Flow€11.5B

Technical Analysis

TrendBearish
RSI56.2
Support€82.66
Resistance€90.06
MA 20€87.19
MA 50€87.98
MA 200€95.93
MACDBullish
VolumeDecreasing
Fear & Greed Index91.61

Valuation

Target Price€111.54
Upside/Downside24.37%
GradeUndervalued
TypeValue
Dividend Yield5.87%

Risk Assessment

Beta0.38
Volatility26.48%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.