Via Transportation (VIA): Assessing Valuation After Recent Share Price Weakness

Via Transportation (VIA) has had a choppy few months, slipping over the past 3 months even after a solid 1 day bounce, and that disconnect between performance and fundamentals is drawing fresh attention.

See our latest analysis for Via Transportation.

Looking beyond the latest bounce, Via Transportation’s 30 day share price return of negative 17.8 percent and year to date share price return of negative 35.4 percent suggest momentum has been fading as investors reassess execution risks against strong underlying revenue and earnings growth.

If Via’s recent pullback has you reassessing growth stories in tech enabled mobility, it could be worth scanning fast growing stocks with high insider ownership for other fast moving opportunities with skin in the game from insiders.

With the shares now trading at a steep discount to analyst targets despite rapid revenue and earnings growth, the key question becomes whether Via is quietly undervalued or if the market is already pricing in its future trajectory.

Price-to-Sales of 6.4x: Is it justified?

Via Transportation trades on a price-to-sales ratio of 6.4 times, a level that makes the stock look expensive versus both peers and the wider software industry at its last close of $32.01.

The price-to-sales multiple compares a company’s market value to its annual revenue and is often used for high growth or loss making software businesses where earnings are not yet a reliable guide. In Via’s case, investors are effectively paying a premium today for each dollar of current sales, implying high expectations for future scaling of its TransitTech platform.

However, statements indicate that this 6.4 times sales mark up is rich relative to similar companies, with peers on roughly half that level at 3.2 times sales. It also screens as expensive against the broader US software sector average of 4.9 times, suggesting the market is already baking in stronger growth and margin expansion than many competitors manage to achieve.

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

Result: Price-to-Sales of 6.4x (OVERVALUED)

However, risks remain, including execution challenges in scaling complex public contracts and persistent losses that could force sharper cost cuts or dampen growth ambitions.

Find out about the key risks to this Via Transportation narrative.

Another View: Discounted Cash Flow Signals Upside

While the 6.4 times sales tag looks rich against peers, our DCF model presents a different view. It suggests fair value closer to $50.38 versus the current $32.01. That implies Via could be around 36 percent undervalued, so is sentiment overshooting execution risks?

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 Via Transportation 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 908 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 Via Transportation Narrative

If you see the story differently or simply want to dig into the numbers yourself, you can build a custom take in minutes, Do it your way.

A great starting point for your Via Transportation research is our analysis highlighting 4 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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