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    Polestar (NasdaqGM:PSNY) Valuation Check After Effective Date Set for ADS Ratio Change

    Simply Wall St·12/08/2025 03:12:30
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    Polestar Automotive Holding UK (NasdaqGM:PSNY) has now locked in the effective date for its previously announced change in the ratio between its American Depositary Shares and underlying ordinary shares, formally updating related SEC registration statements.

    See our latest analysis for Polestar Automotive Holding UK.

    The ADS ratio change lands at a tricky moment for Polestar, with the share price at about $0.60 and a weak year to date, including a roughly 45 percent year to date share price loss and a similar 1 year total shareholder return. This suggests momentum has been fading even as the market reassesses the company’s growth and risk profile.

    If this update has you rethinking the EV space, it may be worth scanning other auto names using our auto manufacturers to spot potential standouts.

    With the share price sitting well below analyst targets, yet losses still mounting as Polestar invests in new models, is this steep discount a sign the stock is undervalued, or is the market already pricing in future growth?

    Most Popular Narrative Narrative: 40% Undervalued

    With Polestar Automotive Holding UK last closing at $0.60 against a narrative fair value of $1.00, the current gap hinges on ambitious profitability and growth assumptions.

    The analysts are assuming Polestar Automotive Holding UK's revenue will grow by 63.1% annually over the next 3 years. Analysts are not forecasting that Polestar Automotive Holding UK will become profitable in next 3 years. To represent the Analyst Price Target as a Future PE Valuation we will estimate Polestar Automotive Holding UK's profit margin will increase from -105.9% to the average US Auto industry of 5.1% in 3 years.

    Read the complete narrative.

    Curious how a loss making EV maker earns a premium style valuation? The narrative leans on rapid scaling, margin lift, and a surprisingly modest future multiple.

    Result: Fair Value of $1.00 (UNDERVALUED)

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

    However, stronger than expected sales momentum and improving cost efficiencies could lift margins faster than anticipated, which may challenge the idea that Polestar deserves a steep discount.

    Find out about the key risks to this Polestar Automotive Holding UK narrative.

    Build Your Own Polestar Automotive Holding UK Narrative

    If this view does not reflect your own thinking, or you prefer digging into the numbers yourself, you can shape a personalized take in minutes: Do it your way.

    A great starting point for your Polestar Automotive Holding UK research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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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.