A Look at Microvast Holdings (MVST) Valuation Following Q3 Results and Updated Growth Guidance

Microvast Holdings reported Q3 2025 results with increased revenue but a shift from net profit to net loss. Despite a recent 40.5% drop in share price, the 1-year total shareholder return is 520.7%. The stock is considered undervalued with a fair value of $6.50, above its last close of $3.60. Strategic expansions and market conditions are influencing its valuation, though risks remain. The company trades at a higher price-to-sales ratio than peers, raising questions about its valuation.

Microvast Holdings, Inc. Reports Record Revenue Growth

Microvast Holdings, Inc. reported record Q3 revenue of $123.3 million, a 21.6% increase year-over-year, alongside improved gross profit margins of 37.6%. The company achieved an operating profit of $13 million and positive cash flow of $59.5 million. Despite a GAAP net loss of $1.5 million and increased operating expenses, Microvast remains optimistic, reaffirming its annual revenue target of $450 to $475 million and projecting a gross margin of 32% to 35%. Strategic partnerships and expansions are expected to enhance growth in the EMEA and Americas regions.

A Fresh Look at Microvast Holdings (MVST) Valuation Following Q3 Sales Growth and Narrowed Losses

Microvast Holdings (MVST) reported strong Q3 sales growth and reduced net losses, prompting investor interest. The stock has seen a 2,455% total shareholder return over the past year, despite recent volatility. Analysts suggest the stock is undervalued at $4.98, with a fair value of $5.50. Continued investments in advanced battery technologies position Microvast for future growth, although geopolitical tensions pose risks. The stock's price-to-sales ratio is higher than industry peers, indicating potential undervaluation or risk expectations. Overall, the outlook remains cautiously optimistic.

Microvast Holdings - CW26 | 8-K: FY2025 Q3 Revenue: USD 123.29 M

Microvast Holdings - CW26 | 10-Q: FY2025 Q3 Revenue: USD 123.29 M