Investors Placing Mercedes-Benz Worth At Half The Market Value Of BMW

Mercedes’ goal to become world’s biggest luxury-car maker fades away as Daimler investors value the company at half what BMW is worth.

BMW saw its market capitalization increase to 45 billion euro ($58.8 billion), compared with 42.2 billion for Daimler. Without the reasonable price for Daimler’s truck business, the value that investors give to Mercedes is about 25 billion euro.

“The market is saying that the prospects for Mercedes are much worse than for BMW,” said Hans-Peter Wodniok, an analyst with Fairesearch in Kronberg, Germany. “The market’s always right. In terms of innovation, BMW is the leader.”

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CarCrazedinCali - 12/14/2012 1:51:27 PM

+1 Boost

agree

GermanNut - 12/14/2012 2:44:22 PM

+2 Boost

Mercedes' failed strategy in China is putting on full display how important the Chinese market is to the fortunes of the Big German 3 luxury automakers.

Yonder7 - 12/14/2012 2:52:14 PM

+1 Boost

Ups that hurts....but that's the economy...Every Luxury car fate is the same at the end. This is the way that I see the future: Big Companies as Toyota, Hyundai, Volkswagen, Peugeot, Will Own ALL the luxury car companies..Like BMW Owns RR, Tata Owns Jaguar and Rover, Daimler Owns MB, etc. At the end it is more profitable to sale millions of cheap cars than a few luxury cars.... MB is not falling cause they decide to enter in 1984 with the 190 to the market of entry level cars and now they are seeing the need to build a lot of new cheap cars If they want to stay on Business, but BMW is ahead of that game with several more cheap models and years of experience than MB. At the End the Only Luxury companies that will exist , will be those Owned and Maintained by Mega companies as Porsche, Owned by VW. Every day the rich are less and the poor more so that market is shrinking for luxury cars (Comparatively speaking)

PUGPROUD - 12/14/2012 3:05:43 PM

+6 Boost

As a market contrarian now is the time to buy Mercedes stock...buy low, sell high. Do you really believe Mercedes' car division is worth half of BMW's....half really!!!! I don't think so.

merc07 - 12/14/2012 4:57:29 PM

+2 Boost

I don't buy mercedes market value half of BMW's at all.

cidflekken - 12/14/2012 5:01:57 PM

0 Boost

This rating is interesting. BMW, in its quest to become the Toyota of the luxury market, has filled almost every imagine niche in the market. Primarily, BMW has heightened its presence in the entry-level space, a space where Mercedes has not had a worldwide presence. Mercedes will soon change that with the intro of the A-Class model range to the US.

I just don't understand the rating. Mercedes is trailing BMW by about 200,000 vehicle worldwide, so that understandably would affect its non-truck value. But $30billion? Not sure about that.

cidflekken - 12/14/2012 5:12:04 PM

+1 Boost

I guess more importantly, I find it hard to believe that MB's truck division is valued at about half of the entire company's value.