(BFM Beurs) – The German carmaker has had a flawless run since its arrival on the stock exchange. However, the valuation still remains below the leader in the field compared to the number of vehicles sold.
Barely a week after the stock exchange listing, Porsche is already screaming for courtesy at the parent company volkswagen. On Thursday, the manufacturer of the famed 911 surpassed the automaker’s market cap, which includes brands like Audi, Skoda and Seat. With a share above 90 euros on Thursday, Porsche weighed more than 82 billion euros on the stock market, compared to just under 79 billion euros for the group. volkswagen.
Porsche’s stock market performance is impressive, with an action that has already taken almost 10% since the IPO of 82.50 euros per share. We were not not necessarily extremely sure about Porsche’s IPO. Especially because there was still quite a bit of headwind. The other listed luxury car manufacturers have been struggling since the beginning of the year, such as Ferrari (-14.5% since January*) and Aston Martin (-92.6% since January*). Then we can talk about pell-mell, the rise in tariffs, the energy crisis and the supply problems affecting the entire automotive sector.
The appetite of investors is finally here and it is a very good operation for the owners of the manufacturer. Previously, Porsche was 100% owned by the group volkswagen, itself controlled by Porsche SE, a family holding company (also listed) not to be confused with the manufacturer. The manufacturer Porsche is now a band in its own right at the fair.
Porsche in the world top 4
To make its IPO (“initial public offering”) a success, Porsche had gathered the support of major investors around the table, such as the sovereign wealth funds of Qatar, Abu Dhabi and Norway. The recent price increase is also related to the purchase by the investment banks that accompanied the IPO of nearly 3.8 million Porsche shares (for about 312.8 million euros, according to Reuters). Purchases planned as part of a choice IPO over-allotment. It may also concern a maximum of 14.85 million shares (worth 1.2 billion euros).
To give you an idea of the magnitude of this operation, it is simply the largest IPO in Europe since Glencore in 2011, if we compare emission volumes. In Germany, it is the second largest introduction in the history of the country after Deutsche Telekom in 1996.
Porsche is now the first European manufacturer on the show and the fourth in the world, just behind Tesla, Toyota and the Chinese BYD. If we want to compare with a French group, Porsche is already worth almost double Stellantis. And yet the group sells almost 20 times fewer vehicles per year. But it must be said that this is of course a completely different segment. According to calculations by BFM Bourse, the average sales price at Porsche is still just above 109,000 euros.
As we did for Tesla in early 2020, whose promotion rose by 80% in just over a month at the time, BFM Bourse had fun comparing the valuation of certain car manufacturers per car sold. This makes it possible to playfully show the multiples of appreciation in the luxury automobile. We therefore looked at Ferrari and Aston Martin, but also at Tesla, which remains by far the largest capitalization in the world in this sector. We have taken current market caps* to compare with sales data for all of 2021, as not all groups are making accurate sales forecasts for this year. And of course we have converted all figures to euros**.
3 million euros per car sold
In this game, Porsche is still far from the level of Ferrari, which seems unbeatable. Ferrari is therefore worth more than 3.13 million euros per car sold. While Porsche is ‘only’ worth 270,000 euros per vehicle delivered. Which is still significant. Aston Martin is far behind, with a market capitalization equal to 67,500 euros per car sold. More surprising, however, is that Tesla still shows a valuation equal to more than 800,000 euros per vehicle sold. That puts it just behind Ferrari, which is still one step ahead of everyone else.
Data comparable to the turnover per car sold (in 2021): 58,503 euros for Tesla, 109,603 euros for Porsche, 201,522 euros for Aston Martin and finally 382,868 euros for Ferrari. The order is slightly different when looking at operating margins per vehicle sold in 2021: -14,082 euros for Aston Martin, 7,082 euros for Tesla, 17,596 euros for Porsche and 96,413 euros for Ferrari. However, keep in mind that some manufacturers generate significant revenue outside of the sale of cars. This is the case for Tesla (about 12% of sales excluding cars) or Ferrari (about 16% of revenues, mainly from the sale of derivative products and the supply of engines to Maserati). However, this would only marginally alter this list of winners.
*courses stopped on Thursday October 6, 2022 during the day
*exchange rate for Thursday, October 6, 2022
Jean-Louis Dell’Oro – ©2022 BFM Bourse