Autoliv (ALV) shares have held steady recently, even as investors digest ongoing shifts in the global auto sector. With returns up 25% year to date, the company’s performance is drawing attention among those tracking automotive suppliers.
See our latest analysis for Autoliv.
After rallying sharply this year, Autoliv’s 25.3% year-to-date share price return has stood out against an auto sector that continues to evolve. Recent industry updates highlight both supply chain resilience and growing EV momentum. The company’s one-year total shareholder return of 25.6% signals positive momentum, and its performance over the longer term has rewarded patient shareholders even through sector swings.
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With shares still trading at nearly a 30 percent discount to intrinsic value and analyst targets even higher, the big question is whether Autoliv is currently undervalued or if the market has already accounted for the company’s growth prospects.
Autoliv’s narrative fair value estimate sits noticeably above the recent close, suggesting that the market may be missing core drivers powering the company’s outlook. Analyst expectations, shaped by updated growth rates and margin forecasts, underpin the forecasted upside.
“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. This could lead 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.”
Curious about the numbers driving this upbeat valuation? The underlying blueprint includes ambitious growth expectations, shifting industry demand, and evolving profitability targets. Click through to see which financial lever is the linchpin in this fair value call. The narrative’s true secrets are just beyond this summary.
Result: Fair Value of $135.21 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, persistent trade uncertainty and slowing global vehicle production could undermine Autoliv’s growth story and challenge analyst expectations in the coming years.
Find out about the key risks to this Autoliv narrative.
Prefer your own approach or keen to dive deeper into the story? Bring your own perspective to the numbers and build a custom narrative in just a few minutes. Do it your way
A great starting point for your Autoliv research is our analysis highlighting 4 key rewards and 2 important warning signs 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.
Companies discussed in this article include ALV.
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