QuantumScape (QS): Evaluating Valuation After Corning Partnership Accelerates Solid-State Battery Commercialization

QuantumScape (QS) just unveiled a major partnership with Corning to jointly scale manufacturing of ceramic separators, which is a crucial step in bringing its solid-state battery technology closer to commercial reality. Investors are watching this new phase closely.

See our latest analysis for QuantumScape.

QuantumScape’s game-changing partnership with Corning set off a wave of bullish investor sentiment, sending the share price sharply higher and reigniting optimism around its roadmap. While short-term price action has been strong, total shareholder returns over the past year remain modest. This suggests the market is looking for further proof that commercialization plans will deliver durable growth.

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But with shares rallying strongly after the Corning announcement, is QuantumScape truly trading at a discount? Or are recent gains simply factoring in all the optimism around future breakthroughs, leaving little room for upside?

Most Popular Narrative: 42.8% Undervalued

QuantumScape’s most widely followed narrative views the stock as being priced far below its fair value. This suggests the recent rally is just a taste of what is possible. With market excitement high, this viewpoint raises the stakes on whether future milestones can drive significant upside.

"QuantumScape is no longer a speculative bet on a scientific breakthrough. It is now an investment in a validated, category-defining technology at the very beginning of its commercial ramp-up. The recent announcement is the market's final warning before the story shifts from R&D to revenue, from prototypes to mass production."

Read the complete narrative.

Curious about the case for this massive upside? The narrative’s valuation hinges on bold projections for expansion, manufacturing scale, and industry partnerships. Which game-changing numbers transform the stock’s long-term prospects? See exactly what assumptions underpin this eye-popping fair value.

Result: Fair Value of $25 (UNDERVALUED)

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

However, rapid scale-up remains a challenge, and any unexpected setbacks in commercial production or partnerships could quickly shift investor sentiment and invalidate bullish forecasts.

Find out about the key risks to this QuantumScape narrative.

Build Your Own QuantumScape Narrative

If you think there’s more to the story or want to dig into the details yourself, you can craft your own perspective in just a few minutes, starting with Do it your way

A great starting point for your QuantumScape research is our analysis highlighting 3 key rewards and 4 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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