Has the SharkNinja Price Drop Created an Opportunity for Investors in 2025?

Thinking about what to do with SharkNinja stock? You are not alone. Plenty of investors are taking a closer look after a rollercoaster ride in the share price, wondering if now is a smart time to jump in, stay the course, or head for the exits. SharkNinja’s stock closed most recently at $91.66, and it has seen some sharp swings lately, dropping -8.7% in just the past week and falling -20.2% over the last month. That is a quick turn that is hard to ignore, especially in a market where sentiment can shift fast.

What is behind these moves? While there is no single headline to point to, much of the recent volatility can be traced to shifts in how investors are handling broader market developments. Changes in risk appetite and uncertainty around consumer demand have made many growth stocks feel the pressure, and SharkNinja is no exception. At the same time, those price dips may actually be making its shares more attractive to some who focus on valuation.

Why? On the numbers alone, SharkNinja’s value score comes in at 4 out of a possible 6, meaning that it is undervalued by four major checks. That is a strong showing and sets the stage for a deeper dive into whether the current price could offer a real opportunity. Next up, we will walk through those valuation methods one by one to see what makes SharkNinja stand out on paper. Stick around, because there is an even more insightful way to size up value that you will not want to miss at the end of this article.

Why SharkNinja is lagging behind its peers

Approach 1: SharkNinja Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model is a method that estimates a company's true value by projecting its future cash flows and discounting them to today's dollars. This approach helps investors determine what a business is really worth beyond just its current stock price.

For SharkNinja, the DCF method begins with a look at its most recent Free Cash Flow (FCF), which stands at $239.7 million. Analysts expect this number to steadily increase over the next few years, with projections reaching $1.2 billion by 2029. While analyst estimates are only available for the first five years, further forecasts are extrapolated by Simply Wall St to build a ten-year outlook, offering a longer-term view of the company’s growth potential.

The result of this DCF analysis is an estimated intrinsic value of $166.22 per share. Based on the current share price of $91.66, SharkNinja trades at a substantial discount, about 44.9% below its calculated fair value. This suggests the market may be underestimating the company’s cash-generating potential and long-term prospects.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for SharkNinja.

Our Discounted Cash Flow (DCF) analysis suggests SharkNinja is undervalued by 44.9%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: SharkNinja Price vs Earnings

The Price-to-Earnings (PE) ratio is a popular valuation metric, especially for profitable companies like SharkNinja, because it shows how much investors are willing to pay for each dollar of earnings. This multiple is a quick way to assess whether a stock is expensive or cheap on the basis of its profits. It is particularly relevant when a company consistently generates positive earnings.

It is important to remember that a "normal" or "fair" PE ratio depends not just on profits, but also on expectations for future growth and the amount of risk investors are willing to accept. High-growth companies often command higher PE ratios, while risk or slow growth can bring that number down. For SharkNinja, the current PE ratio sits at 25x. That is above the Consumer Durables industry average of about 11x, but below the average of similar peers at roughly 28x.

To provide deeper context, Simply Wall St uses a proprietary “Fair Ratio” for the PE, currently calculated at 22.68x for SharkNinja. Unlike standard comparisons, this metric blends factors like profit margins, growth rates, industry dynamics, company size, and unique risks. This delivers a more complete and objective benchmark. Because this approach fine-tunes the fair multiple for the specific strengths and challenges of the company, it offers a richer perspective than just matching up with sector or peer numbers.

Comparing SharkNinja’s actual PE of 25x to its fair value PE of 22.68x suggests that shares are trading close to fair value, but at a modest premium. Since the gap is a little over 2x, this makes SharkNinja look slightly overvalued based on this method.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your SharkNinja Narrative

Earlier, we mentioned there is an even better way to understand valuation, so let us introduce you to Narratives. Narratives are a smarter, more personal way to make investment decisions, as they help you connect your story about SharkNinja (your perspective on where the business is headed) directly to the hard numbers, such as fair value and forecasts for future revenue, earnings, and margins.

Simply put, a Narrative links the company’s business story or outlook to a detailed financial forecast, and then to a specific fair value. This allows you to see how likely scenarios actually translate into share prices. Narratives are accessible and easy to build on Simply Wall St’s Community page, which is used by millions of investors to share, update, and visualize their investment views.

With Narratives, you can decide when to buy or sell by comparing your calculated fair value to today’s price. Because Narratives update automatically when fresh news or earnings are released, they keep you informed and in control. For example, one investor might see SharkNinja’s international growth as fueling a fair value of $175 per share, while a more cautious view of competition and consumer demand could lead another investor to assign a fair value closer to $117.

Do you think there's more to the story for SharkNinja? Create your own Narrative to let the Community know!

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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