Avolta (SWX:AVOL): Exploring Valuation After Loyalty Partnership With King Power Expands Global Rewards Network

Avolta (SWX:AVOL) has announced a new partnership with King Power. This collaboration will enable members of both companies’ loyalty programs to enjoy reciprocal benefits and exclusive experiences at a range of global travel and retail locations.

See our latest analysis for Avolta.

Fresh off the announcement with King Power, Avolta’s share price has eased back 7.9% over the past month but remains up 17.2% for the year to date. Long-term shareholders have done even better, earning a 25.9% total shareholder return in the last twelve months, with momentum still firmly on their side.

If collaborations like this spark your curiosity, it’s a great moment to broaden your perspective and discover fast growing stocks with high insider ownership

With shares cooling off despite strong annual gains and a promising new partnership in play, the key question is whether Avolta is undervalued at current levels or if the market already reflects the company’s next chapter of growth.

Most Popular Narrative: 15.5% Undervalued

With a fair value of CHF49.77 set by the most widely followed analyst narrative and Avolta’s last close at CHF42.04, optimism still runs ahead of current trading. The gap between valuation and share price is centered around big-picture transformation rather than short-term price targets.

Expansion into high-growth markets, particularly Asia-Pacific and the Middle East, is expected to increase Avolta's exposure to rising air travel volumes and international passenger flows. This is expected to support sustained revenue growth and diversify earnings streams. The strong consumer shift toward premium, experiential, and localized travel retail (as seen in high-margin products, flexible "sense of place" stores, and hybrid F&B/retail formats) is anticipated to drive higher average transaction value and support margin expansion.

Read the complete narrative.

Curious how these fresh bets in high-growth markets and evolving global travel trends shape the future value? The real intrigue is the bold profit and margin assumptions—numbers that only reveal themselves if you read further. Want to uncover why Avolta’s valuation defies current market hesitation?

Result: Fair Value of $49.77 (UNDERVALUED)

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

However, lingering geopolitical instability and intensifying competition for key airport concessions could quickly change these optimistic expectations for Avolta’s growth story.

Find out about the key risks to this Avolta narrative.

Another View: Price-to-Earnings Ratios Flash a Warning

Looking at Avolta’s valuation through the lens of the price-to-earnings ratio, the story flips. Avolta trades at 51.7 times earnings, which is far higher than the peer average of 27.8 and well above the industry’s 20.8. Even compared to its fair ratio of 46.4, shares look expensive. This raises questions about valuation risk if market expectations cool. How long can this premium hold in the face of rivals and sector norms?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Avolta Narrative

If you think the story is missing a piece or want to chart your own course with the data, you can craft a personalized view in just minutes: Do it your way

A great starting point for your Avolta 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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