<div id="readability-page-1"><div><p>Avio (BIT:AVIO) raised its 2025 guidance for revenue and order backlog, now targeting an order book of €2.1b to €2.2b after strong late-year bookings and quicker contract execution.</p> <p>See our latest analysis for Avio.</p> <p>The raised guidance and stronger order backlog appear to have fed directly into sentiment, with Avio’s share price up 6.78% in the last day to €34.65, contributing to a 15.69% year to date share price return and a very large 1 year total shareholder return. Overall, short term price momentum looks firm, while longer term total shareholder returns have been especially strong. This suggests investors are reacting to both the upgraded outlook and recent news such as the upcoming extraordinary shareholders’ meeting.</p> <p>If this kind of space and defense story has your attention, it could be a good moment to broaden your search across aerospace and defense stocks as well.</p> <p>With the shares up strongly over 1 year and the price still sitting around 26% below the €43.70 analyst target, the key question now is whether Avio still trades at a discount or if the market is already pricing in its future growth.</p> <h2>Most Popular Narrative: 21.9% Undervalued</h2> <p>Avio’s most followed narrative points to a fair value of €44.38 per share, compared with the latest close of €34.65. That comparison puts the valuation framework firmly in focus.</p> <blockquote> <p><em>The development and successful test of the P160 booster, which offers greater payload capacity and reduced costs, are expected to drive improved profit margins and production efficiency. Significant increases in defense propulsion orders, particularly from clients like Raytheon and the U.S. Army, suggest a growing revenue stream and higher profit margins, given the higher profitability of defense contracts.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>There is a detailed earnings ramp baked into this view. It leans on rising margins, a fuller order book, and a very specific future profit multiple. Curious which assumptions really carry that €44.38 fair value tag?</p> <p><strong>Result: Fair Value of €44.38 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, this hinges on execution. Cost overruns or delays on Vega E and higher R&amp;D spending, or any shifts in key defense contracts, could quickly weaken that valuation case.</p> <p>Find out about the key risks to this Avio narrative.</p> <h2>Another Way To Look At Value</h2> <p>Our DCF model paints a very different picture, with Avio at €34.65 trading well above an estimated future cash flow value of €0.08. Instead of a discount, this points to a wide premium. Which set of assumptions do you find more realistic?</p> <p>Look into how the SWS DCF model arrives at its fair value.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/76043574-8180-4cdc-b7a1-b9a8bf38d1ac/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/76043574-8180-4cdc-b7a1-b9a8bf38d1ac/chart/dcf"/><figcaption>AVIO Discounted Cash Flow as at Feb 2026</figcaption></figure><p>Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Avio for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 875 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.</p> <h2> Build Your Own Avio Narrative</h2> <p>If you look at the numbers and reach a different conclusion, or simply want to test your own view, you can build a personalised Avio story in just a few minutes by starting with Do it your way.</p> <p>A great starting point for your Avio research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.</p> <h2>Ready for more investment ideas?</h2> <p>If Avio has sharpened your interest, do not stop here. Put the same energy into finding fresh ideas across sectors so you are not missing other opportunities.</p> <ul> <li>Spot potential high-upside names early by scanning these 3528 penny stocks with strong financials that already show stronger financial foundations than many tiny peers.</li> <li>Position yourself at the front of the AI shift by checking out these 24 AI penny stocks that are tied directly to artificial intelligence themes.</li> <li>Focus on price versus fundamentals by reviewing these 875 undervalued stocks based on cash flows that screen for companies priced below their estimated cash flow value.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

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<p>Avio (BIT:AVIO) has raised its 2025 revenue guidance and order backlog to €2.1b-€2.2b, following strong bookings and contract execution. The share price increased by 6.78% to €34.65, reflecting a 15.69% year-to-date return. Analysts suggest a fair value of €44.38 per share, indicating Avio is undervalued. However, a DCF model shows a premium at the current price. The outlook hinges on successful execution and potential risks include cost overruns and shifts in defense contracts. Investors are encouraged to explore broader aerospace and defense opportunities.</p>

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A Look At Avio (BIT:AVIO) Valuation After Upgraded 2025 Guidance And Expanding Defense Order Book