Porsche SE (SOTP)

Porsche Automobil Holding SE (Porsche SE, PSE) is a Holding Company (Holding Co). Its main asset is a majority holding of the Commons Shares (VOW) of Volkswagen AG (Volkswagen).

• Other assets have ‘mobility’ as a common Topic, but are of minor importancen
• Both, Porsche SE and Volkswagen do have Common as well as Preference Shares
• Porsche SE Preference Shares (PAH3, DE000PAH0038)

Value Proposition

The main asset of Porsche SE is its majority holding of the commons shares (VOW) of Volkswagen. Currently (as per 30 June 2019) it holds 53.1% of the commons shares, worth about 24.5 bn Eur [53,1% x 295.09 mn Shares x 157 Eur/Share].

There are some minor assets on the balance sheet of Porsche SE. Cash (adj for dividend payment not yet executed as of June 30, 2019; p. 39/60) and some other short term assets. My sum of the parts SOTP valuation of Porsche SE is as follows.

According to my rather quick SOTP, the discount from net asset value (NAV) to current market capitalisation is about 22.7%. In other words, Porsche SE basically gives you (and me) the opportunity to buy into VW, paying less than 4/5 compared to just buying VW shares directly. Porsche SE has some overhead costs and invests in some other businesses, but that seems to be rather negligible for the company valuation.

Catalists

Possible Catalists for Porsche are probably pretty much related to the main asset (VOW):

• Positive Surprises related to the ongoing ‘Diesel Skandal’; i.e. lower compensation payments / fines than expected
• IPO of Porsche (the actual opearing company, currently within Volkswagen AG), potentially huge IPO when priced relative to Ferrari (RACE)
• Longer term: succesful transition to electric vehicles (EVs) and potentially a provider of broader mobility services

Conclusion

Currently VOW as one of the major global car manufacturers offers a dividend yield of 3.0% and trades at a P/E of 6.5x. If I wanted to buy into VOW I would propably choose the indirect purchase of VOW via Porsche SE, taking advantage of the above mentioned discount. BUT, currently I do not want to own VOW.

I hope you enjoyed this post about Porsche SE.
Best, s4v

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Add: In early 2021, about , I wanted to buy Porsche SE but wasn’t allowed (compliance). 😦

On 5 Mar 2021, at 08:28, Searching 4Value <searching4value.sa@gmail.com> wrote:

Du hattest wieder mal ein super Timing mit Porsche/VW! — Congratulations!
Ich durfte leider aus compliance gründen nicht in die Porsche SE investieren.

Fande dies aber wirklich einen der “einfachsten SOTP cases” mit attraktivem risk/reward. Eine Menge die richtig/besser werden kann und nicht viel was viel schlechter werden sollte.

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