Bmw Share Price Valuation and Financial Health

Author

Reads 736

Photography of Red BMW on Asphalt Road
Credit: pexels.com, Photography of Red BMW on Asphalt Road

BMW's share price is a crucial indicator of the company's financial health.

As of 2022, BMW's market capitalization is over $60 billion, making it one of the largest automobile manufacturers in the world.

The company's financial health is closely tied to its ability to maintain a stable share price.

BMW's dividend yield is around 3.5%, indicating a relatively stable financial position.

This stability has allowed BMW to maintain a strong presence in the global market, with a significant presence in Europe, North America, and Asia.

The company's financial performance is also reflected in its revenue, which has consistently grown over the years, reaching $143 billion in 2021.

Technical Analysis

Technical analysis is a method of studying and evaluating market dynamics based on the price history.

This type of analysis is used to forecast the prices of different currencies and currency pairs.

Technical analysts use technical analysis tools to forecast price dynamics of a financial instrument in future.

It allows you to make market forecast based on studying historical prices of the trading instruments.

For another approach, see: Capital One Stock Forecast

Financial Strength

Radars 5m Price Gainners on Smartphone with Stock Market Chart Background หุ้น หุ้นไทย ลงทุน เทรด
Credit: pexels.com, Radars 5m Price Gainners on Smartphone with Stock Market Chart Background หุ้น หุ้นไทย ลงทุน เทรด

BMW's financial strength is a crucial aspect to consider when evaluating the stock's potential. The company's quick ratio is 0.70, indicating that it has sufficient liquid assets to cover its short-term liabilities.

One key metric to look at is the current ratio, which is 1.10 for BMW. This means that the company has enough current assets to cover its current liabilities.

The interest coverage ratio is another important indicator of financial health, and BMW's is 17.36. This suggests that the company has a strong ability to pay its interest expenses.

Here's a comparison of BMW's financial metrics with those of its competitors:

These numbers give us a snapshot of BMW's financial health and provide a basis for comparison with its competitors.

Valuation

When evaluating the BMW share price, valuation metrics are crucial to understand the company's financial health and potential growth prospects.

The price-to-earnings (P/E) ratio is a key metric in this regard, and BMW's normalized P/E ratio is 6.62, which is slightly higher than its peers in the industry. In fact, NSANY has a normalized P/E ratio of 7.42, while F has a normalized P/E ratio of 5.15.

BMW's price-to-book value is 0.57, which is lower than NSANY's price-to-book value of 0.27. This suggests that BMW's stock price is more closely aligned with its book value.

Here's a comparison of BMW's valuation metrics with its peers:

Profitability

Luxury BMW 6 Series coupe parked on an urban street, showcasing sleek design and elegance.
Credit: pexels.com, Luxury BMW 6 Series coupe parked on an urban street, showcasing sleek design and elegance.

BMW's profitability is a topic worth exploring. BMW's Return on Assets (Normalized) is 3.42%, which is lower than its competitors.

Let's take a closer look at the numbers. BMW's Return on Assets (Normalized) is 3.42%, while NSANY's is 4.30% and F's is 2.66%.

One key metric to consider is Return on Equity (Normalized). BMW's Return on Equity (Normalized) is 9.70%, which is lower than both NSANY's 14.11% and F's 16.98%.

Here's a quick comparison of the three companies:

Return on Invested Capital (Normalized) is another important metric. BMW's Return on Invested Capital (Normalized) is 4.67%, which is lower than NSANY's 6.01% and F's 3.57%.

Price Volatility

BMW's share price has been relatively stable in the past 3 months compared to the German market. This is a good sign for investors who are looking for a steady return on their investment.

The company's weekly volatility has been stable over the past year, averaging 4% per week. This is lower than the market average, which is 4.9%.

Close-up view of a BMW car interior with focus on the steering wheel and dashboard.
Credit: pexels.com, Close-up view of a BMW car interior with focus on the steering wheel and dashboard.

BMW's price movement is slightly lower than the auto industry average, at 3.7% per week. However, this is still a significant movement, and investors should be aware of it.

Here's a comparison of BMW's volatility with the auto industry and market averages:

In the German market, BMW's price movement is not among the 10% most volatile stocks, but it's also not among the 10% least volatile stocks. This suggests that the company's price is relatively stable, but not immune to fluctuations.

Overall, BMW's stable share price is a positive factor for investors.

Shareholder Returns

The BMW share price has been a topic of interest for many investors, and one key aspect to consider is shareholder returns. Over the past 7 days, BMW's shareholder returns were 1.5%, which is a relatively modest gain.

In comparison, the German Auto industry as a whole returned 0.8% over the same period. The German Market also saw a return of 0.7% during this time.

View of Black Bmw Coupe
Credit: pexels.com, View of Black Bmw Coupe

Looking at the past year, BMW's shareholder returns were -22.7%, which is a significant decline. This underperformed the German Auto industry, which returned -21.6% over the same period. In contrast, the German Market saw a return of 8.4% during the past year.

Here's a summary of the shareholder returns for BMW and the German Market over the past 7 days and 1 year:

Analysts' Insights

BMW's share price has seen a significant boost thanks to Jefferies analysis, which was released on December 6.

Analysts are optimistic about BMW's future performance, with Jefferies upgrading its recommendation to Buy and raising its price target.

Several analysts have shared their views on BMW's stock, with Bernstein maintaining a Buy rating and setting a target price of 86 euros.

Here's a summary of the analysts' recommendations:

It's clear that analysts are confident in BMW's prospects, with several upgrading their recommendations and setting ambitious target prices.

BMW Share Price Details

Close-up of BMW Z4 interior showcasing the gear shift and control panel.
Credit: pexels.com, Close-up of BMW Z4 interior showcasing the gear shift and control panel.

The current share price of BMW is €78.10. This is based on the current market data, which is updated in real-time.

You can view the historical price movements of BMW by adjusting the time frame on the chart. This will give you a better understanding of the company's performance over time.

BMW's 52-week high is €115.35, while its 52-week low is €65.26. This indicates a significant range in the company's stock price over the past year.

Here's a summary of BMW's performance over different time periods:

Keep in mind that these changes are based on historical data and may not reflect the company's current performance. It's essential to stay up-to-date with the latest market trends and news to make informed investment decisions.

Micheal Pagac

Senior Writer

Michael Pagac is a seasoned writer with a passion for storytelling and a keen eye for detail. With a background in research and journalism, he brings a unique perspective to his writing, tackling a wide range of topics with ease. Pagac's writing has been featured in various publications, covering topics such as travel and entertainment.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.