Is Mercedes-Benz (XTRA:MBG) Still Undervalued After Recent Share Price Momentum? A Closer Look at Valuation

Mercedes-Benz Group (XTRA:MBG) shares have edged up in the past week, up nearly 4%, adding to a solid run over the past month. Investors are curious where the stock might head from here as the company posts steady returns.

See our latest analysis for Mercedes-Benz Group.

While Mercedes-Benz Group’s 1-month share price return of 9% shows momentum building, the bigger story is the robust 21% total shareholder return over the past year. This outpaces many peers and hints at a confident outlook from investors amid recent steady financial results.

If you’re interested in seeing how the rest of the auto industry is performing, discover the full selection with our See the full list for free.

With shares climbing and financials remaining resilient, is Mercedes-Benz Group’s current valuation a signal that there is further room to run, or has the market already priced in future growth prospects?

Most Popular Narrative: 2.9% Undervalued

With shares trading at €58.36 and the most widely followed narrative assigning a fair value of €60.08, Mercedes-Benz Group is currently seen as holding moderate upside. Analyst consensus remains steady, and expectations are reflected in the latest price moves.

Expansion into electric vehicles, digital platforms, and advanced in-car technologies is expected to support premium pricing, recurring revenues, and long-term earnings growth. Operational efficiency, supply chain optimization, and sustainability initiatives aim to strengthen cost resilience, net margins, and adaptability to shifting industry dynamics.

Read the complete narrative.

Want to know what bold projections fuel this valuation? The story hinges on higher margins, ambitious new sales targets, and a premium earnings multiple rarely seen in autos. Curious how future assumptions stack up against current market skepticism? The numbers behind this narrative might surprise you.

Result: Fair Value of €60.08 (UNDERVALUED)

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

However, persistent China weakness and ongoing global tariff tensions could undermine optimistic earnings forecasts and challenge Mercedes-Benz Group's premium market positioning.

Find out about the key risks to this Mercedes-Benz Group narrative.

Build Your Own Mercedes-Benz Group Narrative

If you have a different view or want to interpret the data firsthand, you can build your own perspective in just a few minutes by using Do it your way.

A great starting point for your Mercedes-Benz Group research is our analysis highlighting 3 key rewards and 3 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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