Ouster (OUST): Valuation Check After Phillip Eyler’s Board Appointment and Recent Share Price Surge
Ouster (OUST) just added seasoned automotive tech executive Phillip M. Eyler to its Board and Compensation Committee, a governance move that could subtly reshape how the lidar maker prioritizes growth, capital allocation, and partnerships.
See our latest analysis for Ouster.
Ouster’s share price has been volatile over the past year, with an 80% year to date share price return and an 85.56% one year total shareholder return suggesting momentum is still broadly building, even after recent pullbacks and today’s $22.23 print following the Eyler appointment.
If this kind of auto tech story has your attention, it is worth seeing how Ouster compares with other innovators in auto manufacturers.
With the stock up sharply this year yet still trading at a steep discount to analyst targets and intrinsic value estimates, the question now is simple: is Ouster mispriced, or is the market already baking in years of lidar growth?
Most Popular Narrative: 43.7% Undervalued
With Ouster last closing at $22.23 against a narrative fair value near $39.50, the gap implies investors may be underestimating its long term earnings power.
Significant advancements in Ouster's digital lidar hardware, such as the next-generation L4 sensors and Chronos custom silicon, are expected to double the addressable market and improve gross margins through enhanced performance and reliability.
Want to see the math behind that optimism? The narrative leans on rapid top line growth, rising software mix, and a future earnings multiple usually reserved for market leaders. Curious how those moving pieces add up to this fair value call? Read on to unpack the full story.
Result: Fair Value of $39.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that upside case depends on Ouster navigating fierce lidar competition and potential volatility in government and infrastructure contract timing.
Find out about the key risks to this Ouster narrative.
Build Your Own Ouster Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.
A great starting point for your Ouster research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
Looking for your next investing edge?
Do not stop with Ouster. Lock in your advantage by scouting fresh opportunities now using the Simply Wall St Screener before others move first.
- Target income potential with these 12 dividend stocks with yields > 3% that combine current yields with business models built to support long term payouts.
- Explore automation and smart infrastructure through these 24 AI penny stocks positioned to participate in demand for intelligent software and hardware.
- Look for potential mispriced opportunities using these 914 undervalued stocks based on cash flows where market pessimism may have pushed some companies below their estimated cash flow value.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com