Geely Auto (SEHK:175): Assessing Valuation After Recent 15% Share Price Rise

Simply Wall St

Geely Automobile Holdings (SEHK:175) has quietly outperformed the broader Hong Kong market over the past three months, rising nearly 15%. Investors are starting to revisit the company’s fundamentals and growth profile following this strong run.

See our latest analysis for Geely Automobile Holdings.

After a strong few months, Geely’s 15% share price gain over the last quarter signals fresh momentum, especially when set against a solid 40% one-year total shareholder return. While the boost hints at renewed growth optimism, recent weeks show investors weighing both future prospects and earlier gains.

If you’re tracking the latest upswing in autos, this is a great moment to discover See the full list for free.

With the recent rally and double-digit annual return, investors are wondering whether Geely remains attractively valued or if the current price already reflects its future growth story. This raises the question of whether there is limited room for further upside.

Most Popular Narrative: 27.6% Undervalued

With Geely Automobile Holdings closing at HK$19.03, the most widely tracked narrative values fair price nearly 28% higher. This sets the stage for a dynamic growth story and evaluation of the company’s future potential.

The integration of smart driving technologies, including AI applications and autonomous driving features, is expected to enhance the product offering. This could potentially lead to higher average selling prices and improved net margins.

Read the complete narrative.

Ever wondered how ambitious international expansion and advanced tech could fuel a premium price for these shares? The narrative hinges on a few bold growth bets and a market multiple that not many would expect for this sector. Which core projections propel this valuation? Read the full narrative to uncover the assumptions powering this bullish outlook.

Result: Fair Value of $26.28 (UNDERVALUED)

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

However, fierce competition in the NEV space and uncertainty around Geely’s autonomous driving efforts could challenge the optimistic growth outlook ahead.

Find out about the key risks to this Geely Automobile Holdings narrative.

Build Your Own Geely Automobile Holdings Narrative

Prefer to reach your own conclusions? Dive into the fundamentals and shape a personal perspective in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Geely Automobile Holdings.

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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.

Valuation is complex, but we're here to simplify it.

Discover if Geely Automobile Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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