Assessing Autohome (NYSE:ATHM) Valuation After Recent 11% Share Price Decline

Autohome (NYSE:ATHM) shares have trended downward over the past month, falling about 11%. With the company showing some annual growth in revenue and earnings, investors are watching closely for any shifts in momentum.

See our latest analysis for Autohome.

Autohome’s 1-year total shareholder return is down 6.4%, despite a modest 0.85% year-to-date gain in its share price. With a recent 11% drop and a five-year track record that has seen significant declines, investors seem to be weighing the sustainability of its recovery, even as longer-term results show some bright spots.

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With shares now trading below both recent analyst price targets and some measures of intrinsic value, the key question arises: is Autohome currently undervalued, or has the market already factored in its prospects for growth?

Most Popular Narrative: 10% Undervalued

Autohome's narrative fair value lands at $28.87, about 10% higher than its recent close of $25.99. This highlights a possible upside if assumptions play out. The current price reflects some skepticism, setting the stage for a debate on future growth and margin expansion.

Accelerated adoption of AI-powered tools, such as Smart Assistants and advanced data products, is driving significant improvements in user engagement, content relevance, and operational efficiency for both consumers and enterprise clients. This positions Autohome to capture a larger share of digital ad budgets and premium SaaS/data revenue, which supports long-term growth in revenue and net margins.

Read the complete narrative.

Want the full story behind this price target? The narrative leans on ambitious projections for revenue, margins, and user growth, plus some big operational shifts. Dive in to discover what’s fueling analyst conviction and the numbers that could swing the outlook either way.

Result: Fair Value of $28.87 (UNDERVALUED)

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

However, ongoing margin compression or a sharper than expected slowdown in new energy vehicle sales could threaten Autohome's current growth narrative.

Find out about the key risks to this Autohome narrative.

Build Your Own Autohome Narrative

If the current analysis doesn’t match your view or you like to dig deeper on your own, you’re invited to put together your own take. Do it your way.

A great starting point for your Autohome research is our analysis highlighting 3 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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