DDAIF - Mercedes-Benz: Industry Premium Arguably Justified

• Mercedes-Benz Group is a leading car company from Germany. With annual revenues >$170 billion, Mercedes-Benz is ranked as the world's third biggest automotive company.
• Over the past few years, Mercedes-Benz has been quite successful in repositioning its passenger vehicles in the luxury class.
• Mercedes-Benz's fundamentals are strong and are arguably quite defensible in an economic downturn due to the company's premium industry positioning.
• I value Mercedes based on the residual earnings framework anchored on analyst EPS consensus estimates and calculate a fair implied share price of $104.58/share.

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