Electrovaya (TSX:ELVA): Rethinking Valuation After Surging Profitability and Full-Year 2025 Results

Electrovaya (TSX:ELVA) just delivered full year 2025 results that flip the story from turnaround to execution, with sales climbing to about USD 64 million and a move back into positive earnings.

See our latest analysis for Electrovaya.

The market has already started to price in this shift, with a 1 year to date share price return of around 147.8% and a 1 year total shareholder return of roughly 150.6 percent, even after a recent pullback. This suggests that momentum is still broadly constructive rather than fading.

If Electrovaya’s move back to profitability has you rethinking growth opportunities, it is a good moment to explore fast growing stocks with high insider ownership as potential next candidates for your watchlist.

With profits restored and the share price already surging, the key debate now is whether Electrovaya is still trading below its true value or if the market has already priced in the next wave of growth.

Most Popular Narrative: 50.2% Overvalued

Compared with the last close at CA$9.02, the most widely followed narrative implies a fair value closer to CA$6.01, framing today’s rally as ahead of fundamentals.

In order for you to agree with the analyst's consensus, you would need to believe that by 2028, revenues will be $177.9 million, earnings will come to $28.9 million, and it would be trading on a PE ratio of 9.3x, assuming you use a discount rate of 7.9 percent.

Read the complete narrative.

Want to see how aggressive the growth, margins, and earnings multiple really are behind that fair value, and how much perfection is already assumed? The full narrative lays it out in striking detail.

Result: Fair Value of $6.01 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued rapid revenue growth and diversification into new verticals could outpace current expectations and force analysts to revise their cautious stance.

Find out about the key risks to this Electrovaya narrative.

Build Your Own Electrovaya Narrative

If you are not fully aligned with this view or simply prefer to dig into the numbers yourself, you can craft a personalized narrative in just a few minutes, Do it your way.

A great starting point for your Electrovaya research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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