Stevanato Group (NYSE:STVN) Valuation in Focus After Major German Drug Device Manufacturing Expansion

Stevanato Group (NYSE:STVN) is making waves after unveiling a major expansion of its drug delivery manufacturing space in Bad Oeynhausen, Germany. This move positions the company with added flexibility and reach.

See our latest analysis for Stevanato Group.

The recent expansion in Germany comes at a time when Stevanato Group’s momentum is clearly building. After a 17.65% share price return since the start of the year and with a remarkable 45.87% total shareholder return over the last twelve months, investors are showing renewed confidence in the company’s growth potential. While the share price had a slight dip in the past month, the stock remains firmly up over the year and recent news has only helped extend its run of positive sentiment.

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With the stock’s strong performance and a high-profile expansion now underway, the key question for investors is whether Stevanato Group remains undervalued or if the current price already reflects its ambitious growth plans.

Most Popular Narrative: 8% Undervalued

Stevanato Group’s last close price of $26.33 stands at a discount to the most widely followed analyst narrative, which sets fair value higher. This gap comes into focus as investors consider what could propel the next move.

Rising pharmaceutical industry investment in U.S. onshoring and manufacturing capacity creates a structural tailwind for Stevanato's North American operations, particularly at the new Fishers facility. This enhances supply chain localization, deepens client relationships, and is expected to materially contribute to future top-line growth and operating margins as these plants scale up.

Read the complete narrative.

Want to know what drives this premium price target? The secret lies in expectations for stronger margins and revenue growth, plus a future earnings multiple typically reserved for sector standouts. Ready to uncover the projections behind this bullish fair value?

Result: Fair Value of $28.62 (UNDERVALUED)

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

However, rising operational costs or slower than expected scaling at new facilities could put unexpected pressure on margins and challenge upbeat growth projections.

Find out about the key risks to this Stevanato Group narrative.

Another View: Is the Market Overpaying?

While the analyst narrative highlights potential upside, our DCF model paints a different picture. According to this approach, the current price of $26.33 is actually above the SWS estimate of fair value at $11.27. This suggests the shares may be overvalued today. Does this signal caution, or could market optimism be justified by future growth?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Stevanato Group 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 Stevanato Group Narrative

If you want to take a different view or prefer hands-on analysis, you can dig into the numbers yourself and build a narrative in just a few minutes. Do it your way

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

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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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