Microvast (MVST): Assessing Valuation as Škoda Partnership Highlights Growing Commercial Traction in Battery Technology

Microvast Holdings (MVST) is back on investors’ radar after fresh commentary highlighted growing commercial traction for its battery technology, including deployments with industrial partners like Škoda that underscore rising market validation.

See our latest analysis for Microvast Holdings.

That traction is starting to show up in the numbers, too, with the share price at $3.75 and a powerful 90 day share price return of 46.48 percent feeding into a 1 year total shareholder return above 200 percent. This is a sign that momentum is still very much building rather than fading.

If this kind of move has you wondering what else could be lining up for a rerating, now is a good time to explore auto manufacturers as potential next candidates.

Yet with Microvast still loss making but trading at a steep discount to analyst targets, investors now face a key question: is the current price a genuine entry point, or is the market already discounting years of growth?

Most Popular Narrative Narrative: 42.3% Undervalued

With Microvast closing at $3.75 versus a narrative fair value of $6.50, the most widely followed view points to a sizeable valuation gap tied to future earnings power.

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, directly supporting volume growth and operating leverage, which is likely to enhance future revenue and gross margins.

Read the complete narrative.

Curious how a loss making manufacturer earns such a premium outlook? The narrative leans on aggressive revenue compounding, margin lift, and a future earnings multiple more often seen in market darlings. Want to see exactly how those moving parts stack up to reach that fair value?

Result: Fair Value of $6.50 (UNDERVALUED)

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

However, a heavier China footprint and ongoing net losses mean geopolitical shocks or funding strains could still derail the bullish growth narrative.

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

Build Your Own Microvast Holdings Narrative

If you see the story differently or prefer to dive into the numbers yourself, you can build a personalised view in just 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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