Stellantis (BIT:STLAM) Valuation: Are Shares Discounted After Recent Market Pullback?

Stellantis (BIT:STLAM) shares have seen some movement recently, with the stock declining around 2% in the past day and nearly 10% over the past week. Investors are watching how recent trends might impact the automaker’s longer-term outlook.

See our latest analysis for Stellantis.

Stellantis is navigating a challenging patch, with momentum clearly fading after a period of stronger gains earlier this year. While the most recent 7-day and year-to-date share price returns are firmly in the red, the automaker’s one-year total shareholder return of -25.6% stands out as a reminder that short-term volatility is connecting with larger questions about valuation and sentiment toward the sector.

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With Stellantis trading below analyst price targets and the stock’s valuation metrics looking discounted, investors may be left wondering: Is this recent weakness an overlooked buying opportunity, or are markets already pricing in muted growth ahead?

Most Popular Narrative: 7.9% Undervalued

Stellantis closed at €8.64, yet the most widely followed narrative puts its fair value at €9.38. This perspective suggests that the current price does not fully reflect upside catalysts in play.

Sequential improvements in operating margins and halved cash flow outflows from 2H 2024 to 1H 2025, combined with a robust liquidity position (25-30% of trailing 12-month revenue), indicate underlying operational progress that could drive higher future net margins and cash generation as near-term headwinds subside.

Read the complete narrative.

Earnings rebound, margin resets, and a massive cash buffer all play a role in the fair value calculation. The narrative emphasizes future upside tied to ambitious profitability and operational milestones. See what bold assumptions are at the heart of this story.

Result: Fair Value of $9.38 (UNDERVALUED)

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

However, persistent U.S. tariff uncertainty and continued weakness in Stellantis’ core European commercial vehicle segment could undermine the upside case as the company moves forward.

Find out about the key risks to this Stellantis narrative.

Build Your Own Stellantis Narrative

If you see the story unfolding differently, or want to dig into the numbers your own way, you can craft a custom narrative in minutes. Do it your way

A great starting point for your Stellantis research is our analysis highlighting 3 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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