A Look At Microvast Holdings (MVST) Valuation After Expanded Iveco Deal Earnings And Going Concern Warning

Microvast Holdings (MVST) is back in focus after reaffirming and expanding its long running battery partnership with Iveco Group in Europe, alongside releasing 2025 results, 2026 guidance, and an auditor warning on going concern risks.

See our latest analysis for Microvast Holdings.

Despite a series of material updates including the expanded Iveco partnership, 2025 results, 2026 guidance and the going concern warning, Microvast’s recent share price performance has been weak. The 30 day share price return is a 31.33% decline and the 90 day share price return is a 45.58% decline, while the 1 year total shareholder return of 23.08% and 3 year total shareholder return of 36.75% point to a very mixed longer term picture.

If this kind of electric vehicle supply chain story interests you, it can be useful to compare Microvast with other listed names and see what stands out in the 27 power grid technology and infrastructure stocks

With Microvast trading at US$1.60, recent revenue of US$427.52 million, a reduced net loss and an expanded Iveco partnership on one side, and a going concern warning on the other, is this a mispriced opportunity or is the market already factoring in future growth?

Most Popular Narrative: 73.3% Undervalued

Analysts see Microvast’s fair value at $6.00 versus a last close of $1.60, and they link that gap to a very specific earnings and margin path.

Relentless focus on operational efficiency and cost discipline, demonstrated in consecutive improvements in gross margins and significant reductions in operating expenses, sets the stage for sustainable net margin and operating profit growth as revenue scales.

A robust pipeline of strategic partnerships and advanced product launches, alongside the company’s ability to secure long-term contracts, supports recurring cash flow and long-term backlog, improving earnings stability and supporting the foundation for further market share gains.

Read the complete narrative.

Curious how a loss making business, a higher profit margin profile and a future earnings multiple come together to back that $6.00 figure? The narrative leans on a detailed playbook across revenue growth, profitability and share count that the market is not pricing in at today’s level.

Result: Fair Value of $6.00 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, there are still meaningful watchpoints, including the going concern warning and heavy reliance on China based manufacturing, that could quickly challenge this upbeat earnings path.

Find out about the key risks to this Microvast Holdings narrative.

Another View: What The P/S Ratio Is Signalling

The $1.60 share price and $6.00 analyst fair value sit alongside a mixed picture on simple sales based pricing. Microvast trades on a P/S of 1.2x, which is above the peer average of 0.7x, yet below its own fair ratio of 2.2x that the market could move towards over time.

In plain terms, that means the stock is priced richer than many Machinery peers on current revenue, but still at a discount to what the fair ratio suggests for this level of sales, growth and risk. For investors weighing the optimistic earnings path against going concern and funding questions, this gap may represent either a cushion or an additional source of valuation risk.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

The mixed sentiment in this story, with both real risks and clear potential rewards in play, means the next move is on you. Take a close look at the balance of 2 key rewards and 1 important warning sign

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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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