A Look at ATRenew (NYSE:RERE) Valuation Following Turnaround Profits and Upbeat 2025 Revenue Guidance

ATRenew (NYSE:RERE) just posted third-quarter results showing net income growth and a return to profitability over the past nine months. The company also provided strong revenue guidance for the rest of 2025. This combination is attracting fresh investor attention.

See our latest analysis for ATRenew.

After a tough stretch earlier in the year, ATRenew's momentum has turned sharply positive. Fresh earnings and robust guidance have helped the stock deliver a 59% share price return year-to-date, while its three-year total shareholder return now tops 106%. Recent buybacks and rising profitability are energizing sentiment, suggesting that investors may be re-evaluating the company’s long-term growth prospects.

If ATRenew’s turnaround has you watching for what else is gaining traction, this is an ideal moment to broaden your search and discover fast growing stocks with high insider ownership

With improved earnings, rising guidance, and a double-digit discount to analyst price targets, the question remains: is ATRenew undervalued at current levels, or is the market already pricing in its next phase of growth?

Most Popular Narrative: 31.3% Undervalued

The most widely followed narrative puts ATRenew’s fair value at $6.61, which sits well above the last close of $4.54. Analyst expectations for future profitability and margin expansion are central to this bullish pricing case.

Ongoing investment in refurbishment capacity and multi-category recycling, including for laptops and wearables, is enabling higher-margin value-added services to account for a growing share of revenue. This supports further gross margin expansion and ultimately improves net margins. The company's scale-driven efficiency improvements, enhanced by AI-enabled order dispatch, in-store and to-door fulfillment, and a rapidly growing nationwide store network, are expected to lower per-unit fulfillment and operational costs. This could expand profitability and operating margins over time.

Read the complete narrative.

Curious what mix of future revenue surges, margin leaps, and market expansion drives this hefty fair value? Only the full narrative reveals which bold assumptions send ATRenew’s valuation soaring. Find out what stands behind those projections.

Result: Fair Value of $6.61 (UNDERVALUED)

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

However, any reduction in government subsidies or rising costs from rapid store expansion could quickly undermine ATRenew's profit outlook and growth projections.

Find out about the key risks to this ATRenew narrative.

Another View: Multiples Paint a Different Picture

Looking at ATRenew’s valuation using the price-to-earnings ratio tells a more cautious story. Shares trade at 25.3 times earnings, notably above both the US Specialty Retail industry average of 18 times and peers at 16.8 times. Even compared to a fair ratio of 33.6 times, ATRenew appears premium priced, which could mean less room for upside if momentum slows. Does this signal untapped potential or simply reflect investor enthusiasm running hot?

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

Build Your Own ATRenew Narrative

The numbers can tell many stories. If you see things differently or want a hands-on look, you can craft your own view in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding ATRenew.

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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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