Flex (FLEX): Assessing Valuation Following Major Hungary Facility Launch and European Automotive Expansion

Flex (FLEX) just opened a state-of-the-art, 10,000-square-metre facility in Hungary. This marks a major step forward for its European expansion and advanced automotive and battery platform ambitions. Investors are watching closely as the company strengthens its regional presence.

See our latest analysis for Flex.

The debut of Flex’s Hungarian facility is adding to a year of strong momentum, with the company’s 1-year total shareholder return up 51.7% and a remarkable 3-year total return of 273%. The latest share price stands at $59.11, and recent gains suggest that investors are taking note of both operational expansion and a positive long-term growth trajectory.

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With Flex’s shares surging and ambitious growth plans in motion, the key question now is whether the stock still offers value for new investors or if the market has already priced in these future gains.

Most Popular Narrative: 20.5% Undervalued

Compared to its last close of $59.11, the most popular narrative estimates Flex's fair value at $74.37, highlighting a significant gap that could signal upside potential if the underlying growth story holds up. The basis of this view comes amid rapid expansion in critical verticals for Flex and hinges on key financial forecasts.

The ongoing surge in demand for data center and AI infrastructure requiring integrated power, cooling, and advanced IT hardware positions Flex for sustained, outsized revenue growth, as evidenced by the 35% forecasted annual increase in its data center segment, supporting both topline expansion and higher portfolio margins.

Read the complete narrative.

Curious how this bullish stance stacks up in the details? The narrative’s appeal rests on high expectations for business transformation and a financial outlook that might surprise those only skimming the headlines. Which key variables are driving this ambitious valuation target? Unpack the numbers and the logic that set the bar for Flex’s future prospects.

Result: Fair Value of $74.37 (UNDERVALUED)

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

However, ongoing reliance on a few major clients and thin operating margins could quickly dampen sentiment if customer loss or industry price pressures arise.

Find out about the key risks to this Flex narrative.

Build Your Own Flex Narrative

If the prevailing outlook does not align with your perspective, you can dive into the data and shape your own story in just minutes, with Do it your way

A great starting point for your Flex 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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