A Look at Mobileye (MBLY) Valuation Following Recent Share Price Declines

Mobileye Global (MBLY) shares have slipped about 3% after a recent stretch of weaker returns. Investors may be wondering if current levels, now almost 30% lower for the year, present an interesting entry point for the stock.

See our latest analysis for Mobileye Global.

Mobileye’s nearly 30% share price decline year-to-date reflects shifting investor sentiment, despite its impressive 1-year total shareholder return of almost 10%. Momentum has cooled recently, with the stock’s valuation coming under more scrutiny after a stretch of weaker price performance in recent months.

If Mobileye’s rollercoaster run has you thinking about what other names are seeing momentum shifts, now is your chance to discover See the full list for free.

With shares sitting well below analyst price targets and a healthy pace of revenue growth, the question is whether these declines signal an undervalued opportunity, or if the market has already accounted for future prospects.

Most Popular Narrative: 28.7% Undervalued

Based on the most widely followed narrative, Mobileye Global’s estimated fair value sits noticeably above its most recent closing price, which puts a spotlight on key product and partnership momentum in the business. With the current share price lagging behind consensus expectations, anticipation is building over the catalysts that could drive future gains.

The partnership with leading platforms like Uber and Lyft for the integration of Mobileye Drive is positioned to significantly enhance Mobileye’s revenue streams through upfront sales and recurring license fees tied to utilization rates. Expansion in partnerships, such as the new engagement with a European OEM after 8 years, portrays increasing market share and potential uplift in revenue due to wider adoption of Mobileye's technology.

Read the complete narrative.

Want to unravel the bullish story behind this price target? The narrative hinges on an ambitious transformation, driven by blockbuster growth forecasts, margin turnarounds, and aggressive financial targets. Curious about the dramatic financial leap that supports such a confident valuation? Glimpse into the projections that could redefine expectations for this stock. See the full narrative for the details.

Result: Fair Value of $19.67 (UNDERVALUED)

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

However, uncertainty in global auto production and potential tariffs could quickly undermine the bullish expectations for Mobileye’s growth and future earnings.

Find out about the key risks to this Mobileye Global narrative.

Another View: Valuing MBLY by Sales Ratios

Taking a look at the price-to-sales ratio, Mobileye trades at 5.9 times sales, well above both industry (0.7x) and peer averages (1.4x). The market’s current valuation is also higher than our fair ratio estimate of 4.5x, suggesting a premium price tag despite recent share price weakness. Does this premium point to hidden confidence, or extra risk if forecasts stumble?

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

Build Your Own Mobileye Global Narrative

Keep in mind, if you see the numbers differently or want a hands-on approach, you can put together your own take in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Mobileye Global.

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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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