Bayerische Motoren Werke Aktiengesellschaft (BMWYY), mcap=$54bn, price $27.20 vs $25.00

$BMWYY pitch:
– One of the best luxury brands in the auto industry.
– The market is pricing low odds of a successful transition to EVs and driverless thereafter.
– As a result, BMW trades at 5x ’23 PE and sports a 7.8% dividend yield.
– At a discount to Volkswagen and Mercedes.
– The company has not been sitting still in its transition & already has 16% of its revenues coming from EVs.
– The goal is for EVs to account for 50% of revenue by 2030.

$BMWYY valuation:
– At 0.8x TBV and 5x PE trades at a discount to historical multiples of 1.5x TBV and 8.3x fwd PE.
– 70% upside if re-rates to historical multiples.
– SoTP framework results in a similar upside with three big pieces being €52bn for Core BMW, €15bn for Roll-Royce, and €18bn for Financial Services.

Exp. gain: +70% over 12-18 months.

Full BMWYY write-up (free guest account required):

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