Volkswagen: Deeply Discounted Due to Heightened Uncertainty

VW has a long history of high capital spending, stubbornly growing fixed-cost base, and net cash outflows. Management touts the firm's advantages of global scale and strong brands. However, its financial metrics compare unfavorably with peers. Investors seem fatigued. VW’s 75.4% share in Porsche accounts for about 100% of the entire group’s market capitalization alone. Its net asset value per share is more than 4 times its current share price.