Automotive Industry: Q2 2024

The automotive industry has always played an important economic role, contributing about 7% to Europe’s GDP and employing directly and indirectly around 14 million people in the region. In light of the rapid development of the industry, it is worth analysing global trends and the competitive positions of market leaders. Tenet is pleased to present this overview of global players in the Automotive sector. The review contains information about companies’ financial results and market value assessments. We hope the information contained in the review will be beneficial for both market participants and analysts and help them perform comparative analyses of companies in this industry.

Review

This review provides the key financial indicators, the market business value, and the Enterprise value (EV) / EBITDA multiples of public companies leading in the Automotive sector. The companies were selected based on two criteria:

• Business size – we selected public companies with the largest capitalisation and revenue as indicators reflecting the market share;
• Geographical presence – we have selected companies from economies with different growth prospects; legal, regulatory, and tax regimes; capital markets; and other factors that can impact business value.

Sources of information

The review has been performed based on data from international analytical agencies. We have not carried out an assurance procedure to confirm the accuracy and completeness of the data contained in these information sources. We assume that the information provided in these materials is reliable and relevant. However, if additional information comes to light it cannot be ruled out that it would impact the results presented herein.

Comparative analysis

The EV/EBITDA multiple is generally accepted in valuation practice and applied in this review to compare different companies. We do not guarantee that the multiples presented in this review will apply to your circumstances. Multiples for peer companies may not be applicable because of differences in:

• The current development stage of various companies
• The current situation and market outlook in individual countries
• The respective tax burden
• The cost of labour, energy, and capital
• The industry and economy regulation, including for capital market

Multiples are calculated based on the companies’ share quotes on stock exchanges, i.e. they are determined at a minority level. When appraising significant equity stakes, we should take into account the need to apply a control premium. Nevertheless, the results presented herein may guide appraising the value of a business. This review has been prepared for informational purposes only. Its contents should not be treated either as an investment recommendation, a conclusion about the assets’ market value, or as an opinion on the reliability of financial results.