Volkswagen AG — Company Valuation & Financial Modeling

Project Overview

Comprehensive financial model for Volkswagen AG built as part of MBA Finance coursework. Objective: Estimate intrinsic value and determine if VW stock is over/undervalued.

Valuation Summary

Metric	Value
Enterprise Value	€314,767M
Equity Value	€273,987M
Intrinsic Price (DCF)	€546.55/share
Market Price	€86.40/share
Upside Potential	+532.6%
Verdict	UNDERVALUED ▲

Model Structure (13 Sheets)

#	Sheet	Description
01	Cover	Professional cover page
02	Assumptions	WACC, growth rates, margin inputs
03	Historical P&L	Income Statement FY2021–FY2025
04	Ratio Analysis	15+ ratios + DuPont decomposition
05	Revenue Forecast	Bear / Base / Bull scenarios
06	Projected P&L	Forecasted financials 2026E–2030E
07	FCF Build	Free Cash Flow to Firm (FCFF)
08	WACC	Cost of Capital via CAPM
09	DCF Valuation	Enterprise Value → Intrinsic Price
10	Comps	8 peer companies, trading multiples
11	Sensitivity	2D WACC × Terminal Growth Rate
12	Football Field	Valuation range summary chart
13	KPI Dashboard	Executive summary + charts

Methodology

• DCF Valuation — FCFF discounted at WACC 5.32%
• Trading Comparables — EV/EBITDA, EV/Revenue, P/E vs 8 global peers
• Sensitivity Analysis — WACC 4%–9% × TGR 1%–3.5%
• Scenario Analysis — Bear / Base / Bull revenue projections

Key Assumptions

Parameter	Value
WACC	5.32%
Terminal Growth Rate	2.0%
Cost of Equity (CAPM)	8.85%
Cost of Debt (after-tax)	3.24%
Beta (adjusted)	1.10
Base Case Revenue CAGR	2.9%

Data Sources

• Volkswagen AG Annual Reports 2022–2025 (Official IFRS)
• Q1 2026 Interim Report
• Bloomberg / FactSet (peer data)
• ECB (Risk-free rate)

Tools Used

• Microsoft Excel (Financial Modeling)
• Investment Banking color conventions (Blue/Black/Green)

About

Prepared by: Shekhar Tanwar
Program: MBA Finance
Date: July 2026