A Look at Xometry's Valuation Following Strong Q3 Revenue Growth and Raised Guidance

Xometry (XMTR) caught investor attention after reporting a big jump in third quarter revenue and raising its full-year guidance. Sales climbed 23% compared to last year, which highlights strong momentum for the company.

See our latest analysis for Xometry.

It has been a rollercoaster stretch for Xometry, with the share price jumping nearly 20% over the past month and extending its year-to-date gain to 35%. The company has also experienced sharp pullbacks in recent days as some investors locked in profits following the upbeat results. Over the past year, however, Xometry’s total shareholder return of 89% speaks to building momentum and strong confidence in the company’s long-term outlook.

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The big question now is whether this rapid growth and upward guidance means Xometry’s stock is undervalued, or if investors have already priced in much of its future potential, which could leave limited room for further upside.

Most Popular Narrative: 9% Overvalued

At $56.34, Xometry’s share price sits well above the narrative’s fair value of $51.67, suggesting heightened optimism from investors. This creates big assumptions about future growth and margins that drive the most common narrative on the stock.

The rapid deployment of AI and machine learning across pricing, supplier selection, and workflow automation is substantially improving efficiency, optimizing gross margin, and providing significant operating leverage, positioning the company for margin expansion and improving EBITDA.

Read the complete narrative.

Can Xometry keep up this breakneck growth? The narrative depends on ambitious forecasts for profit turnaround and margin expansion. Curious just how aggressive the financial projections and earnings targets must be? Find out what bold bets justify the premium over fair value.

Result: Fair Value of $51.67 (OVERVALUED)

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

However, international expansion and continued high investments could pressure margins and limit profitability, raising questions about whether current growth is truly sustainable.

Find out about the key risks to this Xometry narrative.

Build Your Own Xometry Narrative

If you want to see the numbers for yourself or shape your own view on Xometry’s outlook, you can quickly build your own perspective in minutes: Do it your way

A great starting point for your Xometry research is our analysis highlighting 1 key reward 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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