Polestar (NasdaqGM:PSNY) Valuation After $600m Geely Loan and Reverse Stock Split-Driven Turnaround Effort
Polestar Automotive Holding UK (NasdaqGM:PSNY) just followed its 1 for 30 reverse stock split with a fresh 600 million dollar subordinated loan from a Geely affiliate, a one two punch aimed squarely at liquidity and listing risk.
See our latest analysis for Polestar Automotive Holding UK.
Even with the reverse split and fresh Geely backed funding, momentum has been sharply negative. The latest 12.74 share price sits against a roughly 61 percent year to date share price return and a three year total shareholder return near minus 91 percent, signaling sentiment still needs convincing.
If Polestar’s volatility has you reassessing your EV exposure, this could be a good moment to explore other listed auto makers through our curated auto manufacturers.
With shares still down sharply despite fast growing revenue and a sizeable intrinsic discount, are investors being offered a contrarian entry point into Polestar’s turnaround, or is the market correctly pricing in its uphill path to sustainable growth?
Most Popular Narrative Narrative: 57.5% Undervalued
With Polestar’s last close at 12.74 dollars against a 30.00 dollar fair value, the most followed narrative frames today’s price as a deep discount that hinges on ambitious growth and profitability upgrades over the next several years.
In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be 11.0 billion dollars, earnings will come to 559.6 million dollars, and it would be trading on a PE ratio of 6.7x, assuming you use a discount rate of 11.5 percent.
Want to see how rapid top line expansion, margin repair, and a compressed earnings multiple can still justify a much higher intrinsic value? The full narrative unpacks the growth curve, capital intensity, and valuation bridge step by step, revealing the specific financial milestones that need to fall into place for that upside to materialize.
Result: Fair Value of $30.00 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent cash burn and intense EV competition could derail margin recovery and force further dilutive funding that undermines the long term upside case.
Find out about the key risks to this Polestar Automotive Holding UK narrative.
Build Your Own Polestar Automotive Holding UK Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in just a few minutes: Do it your way.
A great starting point for your Polestar Automotive Holding UK research is our analysis highlighting 2 key rewards and 4 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.
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