Microvast Holdings (MVST): Evaluating Valuation Following Recent Share Price Volatility

Microvast Holdings (MVST) provides advanced battery technologies for electric vehicles and energy storage systems, serving commercial vehicles across several regions. Investors often keep an eye on changes in its operational results and valuation trends.

See our latest analysis for Microvast Holdings.

Microvast Holdings’ share price has seen dramatic shifts over the past year, with momentum accelerating sharply in the longer term. Its 1-year total shareholder return of 355.26% is standout, even after a recent 30-day share price pullback of 35.69%. Despite some short-term volatility, this kind of move hints investors are recalibrating expectations around growth and risk as the company’s battery solutions gain greater attention.

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With the incredible run-up in Microvast’s share price and recent volatility, the key question is whether investors are looking at genuine value, or if the market has already priced in all the future growth potential. Is there still a buying opportunity here, or has the excitement already been fully reflected in the stock?

Most Popular Narrative: 46.8% Undervalued

Microvast Holdings' narrative suggests its fair value lands at $6.50, sharply above the most recent closing price of $3.46. This notable gap puts the spotlight on the financial growth levers that underpin the narrative’s confidence in further upside from here.

Strategic capacity expansion, including the new 2 GWh line at the Huzhou facility scheduled for Q4 2025, enables Microvast to capture accelerating order flow from the global electrification push. This directly supports volume growth and operating leverage, which is likely to enhance future revenue and gross margins.

Read the complete narrative.

Curious what numbers justify a target nearly double the current share price? There is a bold assumption underpinning future revenue, margin expansion, and a profit multiple that outpaces industry norms. Only in the full narrative do you see just how bullish these underlying projections really are.

Result: Fair Value of $6.50 (UNDERVALUED)

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

However, shifting policies in China or delays in commercializing next-generation battery technology could quickly reshape the optimism around Microvast’s long-term outlook.

Find out about the key risks to this Microvast Holdings narrative.

Another View: Multiples Tell a Different Story

Looking at valuation by sales ratio, Microvast trades at 2.5 times its annual revenue, which is notably higher than both the US Machinery industry average of 2.0 and its peer group at just 0.7. The fair ratio suggests a level closer to 3.5. This gap signals potential risks to investors if expectations shift or industry multiples compress. Could this stretch be warning of over-optimism?

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

Build Your Own Microvast Holdings Narrative

If you want to take a different angle or dig deeper into the data yourself, it’s quick and easy to build your own view in just a few minutes. Do it your way

A great starting point for your Microvast Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign 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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