A Look at Amer Sports (NYSE:AS) Valuation After Strong Q3 Earnings Beat and Upgraded 2025 Outlook

Amer Sports (NYSE:AS) delivered a clear earnings surprise in the third quarter, with sales and profit figures outpacing expectations and fueling a sharp stock rally. Management's upgraded outlook for 2025 adds another layer of interest for investors.

See our latest analysis for Amer Sports.

Amer Sports’ latest earnings beat has supercharged market enthusiasm, sending the share price up 20.5% year-to-date and fueling a one-year total shareholder return of 65.8%. Sustained growth from core brands and consistently upbeat guidance suggest the stock’s momentum is firmly building rather than fading.

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With such powerful results and an upgraded outlook pushing shares upward, the key question is whether Amer Sports is still trading below its true value or if the market has already priced in every bit of future growth potential. Is there still a buying opportunity here, or has optimism gone too far?

Most Popular Narrative: 24.7% Undervalued

Amer Sports is trading well below the fair value implied by the most widely followed narrative, with the last close price notably undercutting the narrative’s target. This sets up a debate about the potential for upside if the narrative’s bullish assumptions play out.

Ongoing investment in direct-to-consumer channels (both physical stores and e-commerce) is fueling higher full-price sales, reduced markdowns, and enhanced customer engagement. This supports scalable top-line growth and drives adjusted operating margin expansion.

Read the complete narrative.

Are you curious what’s really behind these bold fair value calculations? The secret ingredients are aggressive expansion bets, ambitious profitability targets, and a direct channel strategy that is redefining how Amer Sports grows. Want to see exactly which financial levers analysts are pulling to justify such a premium? Unlock the narrative to see what could send this stock even higher.

Result: Fair Value of $46.14 (UNDERVALUED)

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

However, risks such as heavy dependency on Asia-Pacific markets and intensifying competition could quickly dampen the current growth optimism that is driving Amer Sports higher.

Find out about the key risks to this Amer Sports narrative.

Another View: Are Valuation Risks Building?

The market currently prices Amer Sports at a price-to-earnings ratio of 61.9x, which is much higher than both the US Luxury industry average of 19.2x and the peer average of 32.1x. Even compared to its fair ratio of 26.2x, the stock looks expensive. This wide gap signals higher valuation risk if growth expectations falter. Does the market know something others do not, or is optimism running ahead of reality?

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

Build Your Own Amer Sports Narrative

If you want to look beyond the consensus or trust your own analysis, you can craft a personalized Amer Sports narrative yourself in just a few minutes. Do it your way

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