Amer Sports (NYSE:AS) Valuation in Focus After Strong Q2 Results and Upgraded Full-Year Guidance

If you are eyeing Amer Sports (NYSE:AS) right now, you are not alone. The company just posted strong second-quarter results, turning last year’s net loss into a solid profit and notching impressive sales growth. Management responded by raising revenue and earnings guidance for the year, sending a clear signal that they believe in the ongoing momentum. This has investors buzzing about what comes next.

Amer Sports’ stock has jumped by 44% year-to-date and nearly doubled over the past year, a clear sign that the market is warming up to the story. Momentum picked up over the past month, building on a string of upbeat quarterly updates and the announcement of new leadership for its flagship Wilson brand. Recent guidance upgrades are the highlight, but underlying it all is a consistent pattern of recovery and expansion.

With the shares pressing higher, the real question is whether Amer Sports offers true upside from here or if markets are already pricing in the next phase of its growth story. Is this a spot to buy in, or is it time for caution?

Most Popular Narrative: 1.2% Undervalued

According to community narrative, Amer Sports is seen as slightly undervalued, with recent gains powered by ambitious forecasts for global expansion and margin growth.

A focus on premium, high-performance, and technically innovative products is enabling Amer Sports to command higher average selling prices and successfully implement pricing increases. This supports margin expansion even in the face of potential tariff headwinds. There remains significant runway for global brand share gains, especially in categories like Salomon sneakers ($1B sales in a $180B global sneaker market) and women's performance apparel. This positions the company for robust multi-year revenue and earnings growth as these categories scale.

Ever wondered why analysts are targeting a higher value for Amer Sports? There is a surprising calculation driving this view—a calculation that depends on sustained momentum in earnings expansion and margin growth in the years ahead. Think you know what underpins that fair value? The answer goes deeper than you might expect.

Result: Fair Value of $41.97 (UNDERVALUED)

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

However, heavy reliance on flagship brands and ambitious store expansion plans could backfire if consumer demand or execution falters, which could reshape the growth outlook.

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

Another View: Multiples Paint a Different Picture

While the community sees upside, if we look at value through company earnings multiples compared to the luxury industry, Amer Sports appears quite expensive on this basis. Does this challenge the bullish case, or is growth sufficient to justify the premium?

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

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Amer Sports for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Amer Sports Narrative

If you are looking to dig deeper or challenge the prevailing view, you have the tools to analyze the numbers and craft your own perspective in just a few minutes. Why not do it your way?

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Amer Sports.

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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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