Business · Markets · 1 day ago

Mercedes-Benz shares may be worth twice their current price, valuation suggests

Mercedes-Benz shares may be worth twice their current price, valuation suggests

Mercedes-Benz shares have fallen along with other car stocks in recent months.

A valuation of the German carmaker’s assets and businesses puts the company’s fair value at about 74 billion dollars, or roughly 80 euros per share—about twice the current share price.

The calculation includes more than 30 billion euros in net cash in its industrial business, as well as the equity of its financial arm and its stake in Daimler Truck.

Mercedes-Benz plans to reduce its Daimler Truck holding over time.

The valuation also assigns a value to the car and van businesses, while leaving out the Mercedes-Benz brand, which the article says is valued at 50 billion dollars by Interbrand.

The company is still generating cash, paying dividends and buying back shares.

The valuation suggests the shares could rise, but it is an estimate rather than a guarantee.

Sources

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