Stellantis (BIT:STLAM) Valuation: Exploring Potential After Recent Volatility and Earnings Momentum

Stellantis (BIT:STLAM) shares have seen shifts in recent weeks, prompting investors to weigh the carmaker’s current valuation. Stronger net income growth over the past year may have caught some attention, even as the stock lags its sector peers.

See our latest analysis for Stellantis.

Stellantis shares have been volatile lately, with a 7.07% gain over the past month quickly overshadowed by a sharp 7.3% drop in the last day. The company’s 1-year total shareholder return of -21.4% shows persistent weakness, hinting that momentum has cooled as investors reassess growth potential and risk in the current market.

If recent swings in the auto sector have sparked your curiosity, it could be the perfect moment to discover See the full list for free.

With shares trading below analyst price targets and recent earnings growth exceeding expectations, is Stellantis currently undervalued, or does the recent weakness simply reflect that future gains are already priced in?

Most Popular Narrative: 8.7% Undervalued

With Stellantis’s fair value pegged at €9.38 by consensus and the last close at €8.56, the market price sits just below the most popular narrative’s expectations. Analysts see the stock as undervalued based on current fundamentals and anticipated improvements, but divergent forecasts underpin heated debate about the outlook.

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.

Curious what numbers support this bullish stance? The narrative is built around a bold inflection in profitability, forecasting stronger margins and deeply discounted future profit multiples. Want to discover the specific assumptions that might justify such a valuation leap? Dive into the full narrative to unpack how consensus is connecting the dots for future gains.

Result: Fair Value of €9.38 (UNDERVALUED)

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

However, persistent tariff uncertainty and weakness in Stellantis' core European commercial segment could quickly undermine even the most optimistic projections for recovery.

Find out about the key risks to this Stellantis narrative.

Build Your Own Stellantis Narrative

Keep in mind, if these arguments don't align with your perspective or you want to dig deeper into the data yourself, you can easily craft your own view in just minutes, starting with 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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