The cars are noted for their sleek lines. The company — named Dr. Ing. h.c. F. Porsche AG after its founder — is altogether more convoluted. Owner Volkswagen is planning to spin off the sports car maker in an initial public offering later this year. But the complex ownership and management structure may stop Porsche’s value being fully realised.
The darkening economic outlook makes this a tricky year to float. Rival Tesla has lost a third of its value in 2022. Even so, Porsche would be a very big IPO if it went ahead. A 2024 price/earnings multiple of between 16 and 25 seems plausible, given long-term average multiples of luxury brands ranging from Hermès and Ferrari to Mercedes and Aston Martin.
That suggests a market cap of between €67bn and €105bn. But the figure is more likely to be towards the bottom than the top end of that range. Porsche’s operating profit margin is about 18 per cent, compared with 25 per cent for Mercedes. Bernstein puts the value at €75bn.