VNET Group (VNET) Could Be 50% Below Fair Value As It Reaffirms 2026 Guidance

VNET Group (VNET) reaffirmed its 2026 earnings guidance and outlined expected total net revenues of RMB 11.5 billion to RMB 11.8 billion, described as year-over-year growth between 15.6% and 18.6%.

See our latest analysis for VNET Group.

VNET Group’s reaffirmed 2026 outlook and new compute energy partnership with CATL come as the stock trades at US$7.92, with near term share price momentum improving, while longer term total shareholder returns are mixed across different timeframes.

If you are tracking how data center and AI infrastructure themes are playing out beyond VNET Group, it can be useful to scan 56 AI infrastructure stocks.

After VNET Group’s recent rebound and reaffirmed 2026 goals, the key question is whether the stronger price action already reflects the story, or whether the current valuation still leaves meaningful upside on the table.

Most Popular Narrative: 49.6% Undervalued

The most followed valuation narrative puts VNET Group’s fair value at $15.72 compared with the last close at $7.92. This suggests a wide gap that depends on aggressive build out and demand conversion.

Successful execution of long-term capacity expansion plans with significant pre-committed projects (over 50% precommitment for capacity under construction) provides visibility into near-term and future revenue streams, supporting revenue growth and margin stability despite high ongoing CapEx outlays.

Read the complete narrative.

Want to see why this narrative leans so heavily on future utilization and margins? The fair value reflects expectations of fast growing revenue, a sharp swing into profitability and a premium earnings multiple that rivals some high growth peers.

Result: Fair Value of $15.72 (UNDERVALUED)

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

However, VNET Group still carries high leverage and heavy data center spending, so any slowdown in AI related demand or refinancing setbacks could quickly challenge this upside story.

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

Next Steps

If the VNET Group story so far sounds optimistic, you may want to check the data yourself and move quickly if it changes your stance. To understand what is driving that optimism, take a closer look at the 2 key rewards.

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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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