Taking a Fresh Look at EVgo (EVGO) Valuation After Recent Share Price Weakness

EVgo (EVGO) has quietly stayed on investors’ radar as shares slipped about 10% over the past month and roughly 46% in the past year, despite solid double digit annual revenue and net income growth.

See our latest analysis for EVgo.

At around $3.41, EVgo’s 7 day share price return of 5.25% offers a brief bounce against a year to date share price return of negative 18.62% and a 1 year total shareholder return of negative 46.47%. This suggests fading momentum as investors reassess the pace and profitability of EV infrastructure growth.

If EVgo’s volatility has you thinking about portfolio balance, this could be a useful moment to explore auto manufacturers as a way to compare how traditional and newer players are positioned for the EV transition.

With EVgo still loss making but delivering strong revenue growth and trading at a steep discount to analyst targets, investors face a key question: is the market overlooking long term upside or already pricing in realistic growth?

Most Popular Narrative Narrative: 48% Undervalued

With EVgo last closing at 3.41 dollars against a narrative fair value of about 6.54 dollars, the story hinges on ambitious growth and margin lift.

The recently secured 225 million dollars plus commercial bank loan facility (expandable to 300 million dollars) and 1.25 billion dollars DOE loan provide EVgo with flexible, low cost, non dilutive capital, enabling accelerated network buildout and stall deployment, increased scale, and the ability to capture market share and operating efficiencies, all reinforcing EBITDA and earnings growth.

Read the complete narrative.

Curious how aggressive revenue compounding, a sharp margin turnaround, and a premium future earnings multiple can all coexist in one story? Unpack the full narrative to see which financial levers must fire in sync to justify that gap between today’s price and its projected fair value.

Result: Fair Value of $6.54 (UNDERVALUED)

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

However, sustained dependence on government incentives and intensifying fast charging competition could quickly pressure EVgo’s margins, stall its economics, and weaken long-term growth assumptions.

Find out about the key risks to this EVgo narrative.

Another Angle on Valuation

While the narrative fair value suggests EVgo is undervalued, the price to sales lens paints a tougher picture. At about 1.4 times sales, EVgo trades richer than both peers at 0.6 times and the US Specialty Retail sector at 0.5 times, and even above its 1.3 times fair ratio, hinting at limited margin for error if growth slips.

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

Build Your Own EVgo Narrative

If this view does not quite fit your own or you would rather dig into the numbers yourself, you can build a custom take in just a few minutes, Do it your way.

A great starting point for your EVgo research is our analysis highlighting 1 key reward 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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