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Autoliv (NYSE:ALV) has attracted fresh attention after recent share price moves, with the stock roughly flat year to date following a 29.1% total return over the past year.
See our latest analysis for Autoliv.
That recent 1-day share price decline of 4.1% and 7-day share price return of 4.5% contrasts with a 1-year total shareholder return of 29.1%. This suggests longer term momentum has been firm even as short term sentiment cools.
If Autoliv has you rethinking the auto space, it could be a good time to widen the lens and check out other auto manufacturers on Simply Wall St.
With Autoliv trading around $121.24, alongside an indicated intrinsic discount of roughly 29% and a 1 year total return of 29.1%, you have to ask: is there still value here, or is the market already pricing in future growth?
Autoliv’s most followed narrative pegs fair value at about $138.73, compared with the last close at $121.24, framing the recent share price against a higher long term assumption.
Heightened global focus on vehicle safety and increasingly strict automotive safety regulations are driving higher safety content per vehicle. This is expected to support sustained top-line growth and incremental margin improvement as Autoliv leverages its leadership in advanced airbags and seatbelts.
Want to see what is behind that fair value gap? The narrative leans on steady revenue expansion, firmer margins, and a future earnings multiple below the sector norm. The numbers backing it are very specific.
Result: Fair Value of $138.73 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you still need to weigh risks such as weaker global light vehicle production or sustained pricing pressure from major automakers that could challenge those fair value assumptions.
Find out about the key risks to this Autoliv narrative.
If you are not fully on board with this view or simply want to test your own assumptions against the data, you can build a personalised Autoliv thesis in just a few minutes with 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.
If Autoliv has sharpened your interest, do not stop here. Use the Simply Wall St Screener to uncover more focused ideas tailored to how you like to invest.