Something is wrong here: Continental with high reserves

The most recent annual outlook is more sober, the margins are under pressure. The share has developed correspondingly weakly since February, and the market value has shrunk by a few billion euros. At the actll market capitalization of nearly 13 billion Euro might make it viel makes more sense to play through the split case. Conti has three areas. The classic auto parts store, that produces brakes, for example, has the highest revenues, but no margin at the moment. Number 2 is the tire production. Double-digit margins are earned here, even in 2022. Finally, there is contitech. The company supplies technology products made of rubber and earns quite decent margins of around seven percent. In total, the group wants to convert 38 to 40 billion euros.

What could each division be worth in a spin-off? The valuation of the tire business seems relatively easy. Here there is Michelin a noted competitor. If the multipliers of the French are used, this deal alone would be worth eleven billion euros, almost the entire market value. At Contitech, a sales multiple of 0.7 is justified based on the margin. That brings a value of around 4.5 billion euros. Thus, the two areas already exceed the stock market value by a lot. The automotive supplier business, which will have a turnover of around 18 billion euros in 2022, is still missing. Is that worth less than nothing? Hardly likely. A small part of the division is the area of ​​assisted and autonomous driving. That alone would be if you put the multiplier of US industry representatives aptive towards five billion euros. In total there are more than 20 billion euros. And the largest share of the supplier business measured in terms of sales is not even taken into account.

Our columnist Jorg Lang has been dealing with stocks since 1988.

Image sources: Nils Versemann / Shutterstock.com, Continental