Amer Sports (NYSE:AS) Valuation: Assessing the Impact of the Atomic Antitrust Probe on Shareholder Value

A surge of attention has hit Amer Sports (NYSE:AS) after European regulators launched an antitrust investigation involving its Atomic ski brand. The probe has created uncertainty around the stock, and volatility has followed.

See our latest analysis for Amer Sports.

The antitrust probe has clearly weighed on sentiment, with Amer Sports’ share price dropping 11.96% over the past month and down 15.67% for the last quarter. Still, when you zoom out, the stock has delivered a remarkable 76.22% total shareholder return over the past year. This reflects underlying optimism despite some recent volatility.

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With shares trading at a discount to analyst targets but volatility running high, the real question for investors is whether Amer Sports is undervalued at these levels or if the market is already factoring in all the future upside.

Most Popular Narrative: 33% Undervalued

Amer Sports’ most widely followed narrative points to a fair value that is significantly higher than the last close of $31.05, suggesting a notable disconnect between current price and long-term potential. The narrative’s figures, grounded in a discount rate of 8.65%, focus on catalysts such as revenue growth projections, margin expansion, and premium brand strategy.

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, supporting scalable top-line growth and driving adjusted operating margin expansion.

Read the complete narrative.

Want to know what drives this bullish narrative? There's a surprising financial lever powering the gap between price and value. This story hinges on the company’s ability to unlock higher profits from its premium brand push and digital sales strategies. Are the analyst projections too bold, or just bold enough? See the full reasoning before making your call.

Result: Fair Value of $46.35 (UNDERVALUED)

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

However, Amer Sports’ heavy reliance on Asia-Pacific markets and ambitious direct-to-consumer expansion could pressure margins and expose the company to geopolitical uncertainties.

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

Another View: The Price-to-Earnings Story

Looking from a different angle, Amer Sports is trading at a lofty price-to-earnings ratio of 76.9x. That is much higher than both the US Luxury industry average (19.8x) and the peer average (45.8x), and well above its estimated fair ratio of 30.4x. This premium suggests investors are pricing in a lot of future growth and potentially taking on extra valuation risk. With such a large gap, is the share price justified or are expectations running too hot?

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

Build Your Own Amer Sports Narrative

If you see things differently or want to dig deeper into the numbers yourself, you can easily craft your own investment thesis 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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