A Look at Autoliv (NYSE:ALV) Valuation Following Latest Dividend Increase

Autoliv (ALV) just announced a 2.4% increase to its quarterly dividend, now set at 87 cents per share for the fourth quarter of 2025. This adjustment highlights management’s ongoing confidence in their ability to deliver shareholder value.

See our latest analysis for Autoliv.

Following the dividend increase, Autoliv’s share price has demonstrated notable momentum, with a year-to-date share price return of 26.4% and a one-year total shareholder return of 22.3%. The market’s positive response hints at renewed investor confidence around Autoliv’s ongoing growth and improving fundamentals.

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With a recent dividend hike and robust returns this year, is Autoliv’s current valuation still offering upside for new investors, or is the market already reflecting the company’s expected future growth?

Most Popular Narrative: 14.4% Undervalued

Autoliv’s last closing price of $116.67 sits well below the most widely followed narrative's fair value estimate of $136.22, building anticipation for what could drive further upside.

Heightened global focus on vehicle safety and increasingly strict automotive safety regulations are driving higher safety content per vehicle. This is expected to support sustained top-line growth and incremental margin improvement as Autoliv leverages its leadership in advanced airbags and seatbelts.

Read the complete narrative.

This narrative hinges on bold forecasts for Autoliv’s earnings power and profit margins. High expectations are set, with a fair value meaningfully above current prices. Ready to see what projections fuel this view? Dive deeper to uncover the specific financial assumptions that form the backbone of the narrative’s compelling upside case.

Result: Fair Value of $136.22 (UNDERVALUED)

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

However, persistent trade uncertainties and slowing global vehicle production could quickly undermine the case for ongoing growth and gains in Autoliv shares.

Find out about the key risks to this Autoliv narrative.

Build Your Own Autoliv Narrative

If you have your own take or prefer hands-on analysis, you can assemble a personalized view in just a few minutes, Do it your way

A great starting point for your Autoliv research is our analysis highlighting 4 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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