Structural fears, crowded shorts and cheap valuations

Research evidence excerpt

Structural fears, crowded shorts and cheap valuations

Exhibit 30: Mercedes got hit by some de-rating but the multiple is not Exhibit 31: Porsche still gets lot of benefit of the doubts by investors;

yet at trough despite a low share price; earnings consensus came down the valuation says earnings will grow again mid-term

Mercedes 12m forward PE since Jan-22 Porsche 12m forward PE since Jan-22

10.0x 26.0x

P/E +1 std dev -1 std dev Average P/E +1 std dev -1 std dev Average

24.0x 9.0x

22.0x

8.0x 20.0x

7.0x 18.0x

16.0x 6.0x

14.0x

5.0x 12.0x

4.0x 10.0x

24242424242424242424242425252525252525252525252526262626262626 24242424242424242424242425252525252525252525252526262626262626

JanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJul JanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJul

Source: BofA Global Research, FactSet Source: BofA Global Research, FactSet

BofA GLOBAL RESEARCH BofA GLOBAL RESEARCH

Exhibit 32: Ferrari’s current PE looks high but is even fairly small in

historic comparison

Ferrari 12m forward PE since Jan-22

60X

P/E +1 std dev -1 std dev Average

55X

50X

45X

40X

35X

30X

25X

JanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJul

Source: BofA Global Research, FactSet

BofA GLOBAL RESEARCH

Suppliers 12m forward PE

Exhibit 33: Michelin: Despite the short interest increased, Michelin re- Exhibit 34: Continental: the Auomovio spin-off and Contitech disposal

rated quite a bit since April led to a strong re-rating over the last 2 years

Michelin 12m forward PE since Jan-22 Continental 12m forward PE since Jan-22

14.0x 14.0x

P/E +1 std dev -1 std dev Average 13.0x P/E +1 std dev -1 std dev Average 13.0x

12.0x 12.0x

11.0x 11.0x

10.0x 10.0x 9.0x

9.0x 8.0x