Photo: Porsche
You may not know this, but Volkswagen was the most valuable car company in Europe until very recently. On October 6, it had a €77.7 billion ($76.6 billion) market cap. On that same day, the German company lost the lead to Porsche, which recently went through an initial public offering (IPO) of its shares. Ironically, Porsche was part of the Volkswagen Group until that happened.
If you are wondering how much Porsche is worth, it reached a market cap of €85 billion ($84 billion) on October 6. One day later, the numbers were even higher: €92.6 billion ($90.7). Volkswagen also got a little better on October 7, but it is still behind Porsche: its current market cap is €82 billion ($80.3 billion). That proves Volkswagen’s strategy of separating Porsche was financially wise.
After Porsche and Volkswagen, CNN reported that the most valuable European car companies are Mercedes-Benz, BMW, and Stellantis. We checked their most recent market caps, and these companies are respectively worth €57.03 billion ($55.9 billion), €47.5 billion ($46.5 billion), and €39.2 billion (38.4 billion). What about Ferrari? Its market cap is €37.4 billion ($38,16 billion).
These numbers show that the stock market follows some weird rules these days. If Porsche was worth so much, why didn’t Volkswagen’s market cap reflect that value? If what gets measured is how profitable that company will be, what changed after the IPO that Porsche did not have when the Volkswagen Group controlled it?
The market cap nowadays involves more subjective measurements, such as brand value. This is one possible explanation for why Tesla is worth so much more than all these automakers combined. Currently, the American EV maker has a market cap of $746.2 billion: all that with a fraction of the production numbers of most of these European carmakers, as well as revenue. Don't forget the ageing four-car lineup. Go figure…
After Porsche and Volkswagen, CNN reported that the most valuable European car companies are Mercedes-Benz, BMW, and Stellantis. We checked their most recent market caps, and these companies are respectively worth €57.03 billion ($55.9 billion), €47.5 billion ($46.5 billion), and €39.2 billion (38.4 billion). What about Ferrari? Its market cap is €37.4 billion ($38,16 billion).
These numbers show that the stock market follows some weird rules these days. If Porsche was worth so much, why didn’t Volkswagen’s market cap reflect that value? If what gets measured is how profitable that company will be, what changed after the IPO that Porsche did not have when the Volkswagen Group controlled it?
The market cap nowadays involves more subjective measurements, such as brand value. This is one possible explanation for why Tesla is worth so much more than all these automakers combined. Currently, the American EV maker has a market cap of $746.2 billion: all that with a fraction of the production numbers of most of these European carmakers, as well as revenue. Don't forget the ageing four-car lineup. Go figure…
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