Volkswagen's preferred shares closed at €86.54 on June 17, down 3.5% in the sector-wide selloff. The setup is classic deep value: 7.1x earnings, a forward dividend yield around 6%, and a stock about 12% lower on the year — yet analysts carry an average target near €111–116, implying roughly 32% upside. The market is pricing pain; the Street is pricing a recovery.
| Metric | Value |
|---|---|
| Close (Jun 17 2026) | €86.54 (-3.5%) |
| 52-week range | €82.66 – €109.15 |
| Trailing P/E | 7.1x |
| Dividend / target | ~6% / €111–116 (Buy) |
The bull case
VW is cheap for understandable reasons — Q1 operating profit fell 14% to €2.5 billion, tariffs cost ~€0.6 billion in the quarter, and China deliveries dropped 15% — but management is counterpunching with ~€1 billion of overhead cuts and a wave of 30+ "in China, for China" new-energy models from the second half of 2026. The dividend goes ex on June 19, and at 7x you're paid handsomely to wait for the China strategy to bite.
The bear case
A 3.3% operating margin is thin, and if China keeps slipping, the cheap multiple is justified rather than opportunistic. Tariffs annualize to roughly €4 billion, a serious bite, and VW's complexity — many brands, heavy fixed costs — makes turnarounds slow. Value can be a trap when the core market is structurally eroding.
My verdict
This is a buy for value investors with patience. At 7x with a 6% yield and a credible China product offensive, the risk/reward favors the buyer, and the €111+ target gives room. As Ruslan Averin, I'd accumulate €84–€88, right here near the 52-week low, and treat any dip under €83 as a gift. The dividend pays you to hold while the China NEVs prove out.
Bottom line: Volkswagen at 7x with a 6% yield and 30+ new China EVs incoming is the kind of value the market hands out only when it's scared — I'm a buyer near €86.