VOW3:DEU – Market expectations are for Uniform ROA to remain muted, and management has concerns about operating profit, WLTP, and pricing

• • • Volkswagen Aktiengesellschaft (VOW3:DEU)currently trades near historical highs relative to UAFRS-based (Uniform) Assets, with a 1.1x Uniform P/B. At these levels, the market has muted expectations for the firm, and management has concerns about operating profit, WLTP, and pricing
    • Specifically, management may be concerned about their declining operating profit, and may have concerns about volume risks as a result of the upcoming WLTP deadline. Additionally, they may lack confidence in the sustainability of positive pricing going forward, and may have concerns about their ability to maintain lower diesel outflows in their Automotive segment