<div id="readability-page-1"><div><p>Dana (DAN) has caught the attention of investors recently. With its shares showing double-digit gains over the past month, the stock’s movement sparks curiosity about what might be driving momentum for the vehicle components supplier.</p> <p>See our latest analysis for Dana.</p> <p>It is not just a one-off rally. Dana’s year-to-date share price return is an impressive 99.5%, while its total shareholder return over the past year reaches 127.5%. Momentum has strengthened lately, boosted by renewed interest in the auto components space and optimism around Dana’s margin improvements.</p> <p>If you are interested in what else is gaining traction among vehicle manufacturers, now is a good time to discover See the full list for free.</p> <p>But with Dana’s stock price surging so quickly, the big question is whether it remains undervalued compared to its fundamentals, or if recent gains already reflect expectations for future growth. Investors may wonder if this is still a buying opportunity or if the market has already priced in the optimism.</p> <h2>Most Popular Narrative: 14% Undervalued</h2> <p>Compared to Dana’s last close price of $22.48, the most widely followed narrative puts the company’s fair value at $26.14. This perspective is shaped by a big focus on cost savings, margin expansion, and capital returns expected in the next few years.</p> <blockquote> <p><em> Dana's aggressive cost reduction and operational efficiency initiatives, such as the $310 million run-rate cost savings target by 2026, significant margin lift from stranded cost eliminations, and ongoing plant automation, are expected to meaningfully increase net margins and profit sustainability over the next several years.     </em></p> </blockquote> <p>Read the complete narrative.</p> <p>Wonder how ambitious cost cuts, electrification bets, and a dramatic share count reduction fuel this bullish outlook? There is a twist involving future profit margins and a valuation multiple rarely seen in this industry. Dive into the details to discover what bold forecasts are driving Dana’s price target.</p> <p><strong>Result: Fair Value of $26.14 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, Dana’s dependence on a handful of major customers and ambitious cost-cutting targets could threaten the outlook if execution or demand falters.</p> <p>Find out about the key risks to this Dana narrative.</p> <h2>Another View: Looking at Valuation Multiples</h2> <p>On the other hand, looking at Dana’s current valuation through the lens of its price-to-earnings ratio paints a different picture. At 40.4x, Dana trades well above both the industry average of 21.2x and its peer group at 14.5x. The fair ratio, based on market fundamentals, stands at 27.7x. This significant gap suggests Dana may be expensive compared to similar companies, raising the question of whether recent optimism could be overdone or if there is room for a realignment.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/7564ceea-de92-4ec2-804a-f268b7f0499e/chart/pe-multiple-vs-industry?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/7564ceea-de92-4ec2-804a-f268b7f0499e/chart/pe-multiple-vs-industry"/><figcaption>NYSE:DAN PE Ratio as at Nov 2025</figcaption></figure><h2> Build Your Own Dana Narrative</h2> <p>If you see things differently or want to come to your own conclusions, you can build a personal narrative quickly using the available dataset. Do it your way.</p> <p>A great starting point for your Dana research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>Do not let your portfolio miss out on the next big opportunity. The Simply Wall Street Screener puts unique market winners at your fingertips. Here are three smart places to start:</p> <ul> <li>Uncover opportunities in tech innovation by spotting the movers behind artificial intelligence. Start your search with these 25 AI penny stocks and see which companies stand out right now.</li> <li>Find value plays with real upside by targeting stocks that are currently trading below their cash flow potential. Use these 925 undervalued stocks based on cash flows for your best chance at spotting hidden gems.</li> <li>Get ahead of the curve by checking out high-potential investments in digital assets through these 81 cryptocurrency and blockchain stocks, where you can identify businesses reshaping tomorrow’s financial landscape.</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>

<p>Dana (DAN) has seen double-digit share price gains recently, with a year-to-date return of 99.5% and a total shareholder return of 127.5%. The stock is considered 14% undervalued with a fair value of $26.14, driven by cost savings and margin improvements. However, its high P/E ratio of 40.4x suggests it may be expensive compared to industry averages. Investors are advised to consider risks related to major customer dependence and ambitious cost-cutting targets.</p>

Dana (DAN): Exploring Valuation After Recent Double-Digit Share Price Gains