Assessing Sensata Technologies (ST) Valuation After Recent Share Price Momentum And Undervaluation Signals
Sensata Technologies Holding (ST) has drawn fresh attention after recent share price moves, with the stock last closing at $34.89. That puts recent monthly and past 3 months returns ahead of its 1 year performance.
See our latest analysis for Sensata Technologies Holding.
The recent 4.81% 1 day share price return and 14.28% 90 day share price return suggest momentum has picked up after a flat year to date, while the 25.17% 1 year total shareholder return contrasts with weaker 3 and 5 year total shareholder returns.
If Sensata’s recent rebound has your attention, it could be a good moment to see what else is moving and check out auto manufacturers.
So with a value score of 4, an intrinsic value estimate above the current US$34.89 share price, and a discount to the average analyst target, is Sensata genuinely undervalued, or is the market already pricing in future growth?
Most Popular Narrative: 10.8% Undervalued
The most followed narrative places Sensata’s fair value at US$39.13, above the last close of US$34.89, and builds that view around earnings, margins, and buybacks.
In order for you to agree with the analyst's consensus, you would need to believe that by 2028, revenues will be $4.2 billion, earnings will come to $495.4 million, and it would be trading on a PE ratio of 14.0x, assuming you use a discount rate of 10.7%.
Want to see what sits behind that earnings jump, margin shift, and lower future P/E assumption? The full narrative lays out the math and timing behind those forecasts.
Result: Fair Value of $39.13 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are real pressure points too, including tougher price competition in China and higher leverage, which could challenge margins and limit flexibility if conditions tighten.
Find out about the key risks to this Sensata Technologies Holding narrative.
Build Your Own Sensata Technologies Holding Narrative
If you see the story differently or prefer to weigh the numbers yourself, you can build a custom Sensata view in just a few minutes, starting with Do it your way.
A great starting point for your Sensata Technologies Holding research is our analysis highlighting 3 key rewards and 1 important warning sign 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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