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Old 01-06-2013, 04:16 PM
swajames swajames is offline
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Originally Posted by K-A View Post

There was an article out recently that stated "Investors" are valuing the Mercedes-Benz BRAND itself as being worth HALF of what BMW brand (by itself) is worth. They broke it down by stock price and it makes a lot of sense. If M-B is only valued as half of what BMW is, then we can be sure Dr. Z is behind the scenes doing something drastic....
That was a somewhat bogus analysis, though. BMW today has a market cap of 48.2bn EUR, MB has a market cap of 45.5bn EUR. The "analysis" required you to apply a valuation to MB's truck business and take that out of the equation but made no such adjustment for BMW's other businesses such as the motorcycle business or the non-core brands. The numbers can be adjusted any way you like but for the shares issued the market values these two companies at broadly similar market capitalization. MB revenues are higher than BMW and has slightly higher EBITDA but BMW has the higher margin. Consider, though, that both brands are less than 10% the market cap of say Apple - it's all somewhat arbitrary...
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