Autoliv (ALV) stock has seen modest movement lately, with a dip of about 3% over the past week and a broader 8% pullback for the month. However, its long-term trajectory this year remains positive.
See our latest analysis for Autoliv.
This year has seen Autoliv’s share price build solid momentum, climbing more than 25% since January. This reflects renewed optimism in the auto safety sector, despite some recent choppiness. Over the past three years, investors have enjoyed a total shareholder return of nearly 76%, highlighting the company’s staying power through various market cycles.
If you’re curious about what else is gaining traction in the automotive space, it’s worth checking out See the full list for free.
With a strong recent run and shares still trading below analyst targets, investors may wonder whether Autoliv is currently undervalued or if the market is already taking the company’s future growth prospects and stability into account.
According to the most widely followed narrative, Autoliv’s fair value is estimated at $129.74, about 11% above its last close price of $115.59. This sets expectations that the market may not be fully reflecting anticipated future growth and margin gains in the current share price.
Recent success with new product launches in China and strengthening relationships with major Chinese OEMs suggest Autoliv is poised to benefit from rising vehicle ownership in emerging markets, leading to outsized revenue growth and market share gains in high-growth regions. Heightened global focus on vehicle safety and increasingly strict automotive safety regulations are driving higher safety content per vehicle, which is expected to support sustained top-line growth and incremental margin improvement as Autoliv leverages its leadership in advanced airbags and seatbelts.
Want to know what aggressive future profit margins and revenue forecasts are fueling this valuation? Curious about the ambitious targets behind the optimism? Uncover the numbers and logic that underpin this standout price target, where bold projections and strategic shifts collide.
Result: Fair Value of $129.74 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, slowing global vehicle production and ongoing pricing pressure from major automakers could quickly turn optimism into renewed caution for Autoliv’s outlook.
Find out about the key risks to this Autoliv narrative.
If you have a different perspective or want to dive deeper into the figures on your own terms, you can easily put together your own view in just a few minutes: Do it your way
A great starting point for your Autoliv research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
Don’t settle for just one opportunity. Make sure you give yourself every edge. The right screeners can reveal hidden winners, strong returns, and bold trends before the crowd catches on.
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.
Companies discussed in this article include ALV.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com