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If you are wondering whether AT & S Austria Technologie & Systemtechnik shares still offer value at current levels, it helps to step back and look at what the recent price action and fundamentals are really telling you.
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The stock last closed at €49.60, with returns of 28.7% over the past week, 45.2% over the past month, 51.2% year to date, 322.1% over the past year, 64.5% over three years and 100.6% over five years.
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Recent price movements sit alongside ongoing attention on AT & S as a key Austria listed tech manufacturer and its role in global electronics supply chains. These factors have kept the company on the radar for investors who are reassessing both potential growth and risk around the stock.
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Even after this share price performance, AT & S currently has a valuation score of 2 out of 6. Next we will look at what different valuation methods say about the stock and then finish with a broader way to think about its pricing story.
AT & S Austria Technologie & Systemtechnik scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown .
Approach 1: AT & S Austria Technologie & Systemtechnik Dividend Discount Model (DDM) Analysis
The Dividend Discount Model estimates what a share could be worth today by projecting future dividends, applying an assumed long term growth rate, and discounting those cash flows back to the present.
For AT & S, the model uses a dividend per share of €0.21, a return on equity of 3.15% and a payout ratio of 14.31%. The implied long term dividend growth rate is capped at 2.18%, with an expected growth input of 2.70%. This blend is intended to reflect modest, sustainable dividend growth rather than aggressive assumptions.
On this basis, the DDM produces an estimated intrinsic value of €3.63 per share. Compared with the recent share price of €49.60, the model output indicates that the stock trades at a level more than 10 times the modelled value.
Result: OVERVALUED
Our Dividend Discount Model (DDM) analysis suggests AT & S Austria Technologie & Systemtechnik may be overvalued by 1267.4%. Discover 237 high quality undervalued stocks or create your own screener to find better value opportunities.
Approach 2: AT & S Austria Technologie & Systemtechnik Price vs Earnings
For profitable companies, the P/E ratio is a useful way to relate what you pay for a share to the earnings it currently generates. It gives you a quick sense of how many euros investors are willing to pay today for each euro of annual profit.
What counts as a "normal" P/E partly comes down to growth expectations and risk. Higher expected earnings growth and lower perceived risk usually justify a higher P/E, while more uncertainty or weaker growth potential tends to be associated with a lower P/E.
AT & S currently trades on a P/E of 26.99x. That sits very close to the Electronic industry average of about 27.09x and below the peer group average of 37.14x. Simply Wall St also calculates a proprietary "Fair Ratio" for the stock of 32.13x. This metric aims to capture what a reasonable P/E might be given AT & S's earnings growth profile, industry, profit margins, market cap and risk characteristics.
Because the Fair Ratio adjusts for those company specific factors, it can be more informative than a simple comparison with peers or the industry. With the current P/E of 26.99x sitting below the Fair Ratio of 32.13x, the shares screen as UNDERVALUED on this measure.
Result: UNDERVALUED
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Upgrade Your Decision Making: Choose your AT & S Austria Technologie & Systemtechnik Narrative
Earlier we mentioned that there is an even better way to think about valuation, so let us introduce you to Narratives, which let you attach a clear story to your numbers by tying your view on a company to your own assumptions about fair value, future revenue, earnings and margins. A Narrative links what you believe about a company's business to a financial forecast, and then to a fair value that you can easily compare with today's share price. On Simply Wall St, Narratives sit inside the Community page, where millions of investors can quickly set their assumptions, see the implied fair value, and decide whether the gap between fair value and price suggests a potential opportunity or a reason for caution. As new information such as news or earnings is released, these Narratives update so your story and numbers stay aligned with the latest data. For AT & S, one investor might set a relatively high fair value based on stronger revenue and margin assumptions, while another might set a much lower fair value using more conservative estimates, and Narratives make those differences clear at a glance.
Do you think there's more to the story for AT & S Austria Technologie & Systemtechnik? Head over to our Community to see what others are saying!
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.
Companies discussed in this article include ATS.VI .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
