Why Daimler Is Valued More Than Volkswagen Despite Selling Far Fewer Vehicles

DAI: DAIMLER AG logo
DAI
DAIMLER AG

Daimler AG sells less vehicles as compared to Volkswagen AG (OTCMKTS:VLKAY), but still boasts a higher market cap. A number of reasons contribute to this, such as the higher revenue per model and broader margins for Daimler’s lineup consisting of the premium brand Mercedes-Benz, Daimler Trucks and Buses, and Mercedes-Benz Vans.

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Mercedes-Benz has also had a solid year or two and is on pace this year to retake the global premium sales crown it had lost in 2005 to BMW. Mercedes furthermore lost its second position to Audi in 2011, but is now ramping up sales in crucial markets such as China and Europe. Apart from the aforementioned reasons, the emissions scandal remains another reason why Volkswagen’s value dipped. It’s been a year since the news of Volkswagen fitting around 11 million vehicles worldwide with defeat devices to cheat on emissions testing broke out. The company’s stock is still down 20% in the last 52 weeks, rallying back only slightly in the last few months after the company lost almost 40% of its value in a few months after the news was announced.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Daimler AG

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