Risk factor
Negligible price volatility
Profitability factor
Excellent dividends
About
Bayerische Motoren Werke AG (BMW AG), a German enterprise established in Munich in 1916, is a global powerhouse specializing in the design, production, and distribution of automobiles and motorcycles, alongside their corresponding spare parts and accessories. Its wide-ranging activities are divided into three primary segments: Automotive, Motorcycles, and Financial Services. The Automotive division is responsible for the conceptualization, manufacturing, assembly, and sales of passenger vehicles, associated components, ancillary products, and cutting-edge mobility solutions. These offerings are presented under the prestigious BMW, MINI, and Rolls-Royce marques, and are distributed globally through a network of independent and officially authorized dealerships. The Motorcycles segment focuses on the development, fabrication, assembly, and sale of motorcycles and scooters, complete with their parts and accessories, all marketed under the BMW Motorrad brand. Lastly, the Financial Services division delivers a comprehensive array of services. These include vehicle leasing, financing options for both individual customers and dealerships, multi-brand fleet solutions, customer deposit programs, and insurance. Fleet management services are also provided under the Alphabet brand.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is underpriced on P/E, of fair value on EV/EBITDA
Target Price
The average target price of BMW.DE is 73.3 and suggests 34.7% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to in