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    Ralliant (RAL) Valuation Check After Goodwill Impairment Ev Headwinds And Record Sensors Results

    Simply Wall St·02/10/2026 16:24:01
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    Ralliant (RAL) is in focus after reporting a full year net loss tied largely to a non cash goodwill impairment in its EA Elektro Automatik business, alongside ongoing dividends and an unused US$200 million buyback.

    See our latest analysis for Ralliant.

    The recent earnings release, goodwill impairment tied to EA Elektro Automatik and fresh dividend approval have all contributed to sharp volatility. A 7-day share price return of a 24.76% decline and a year-to-date share price return of a 19.60% decline indicate pressure rather than building momentum, despite a 1-day share price return of a 4.20% gain and a latest share price of US$41.18.

    If Ralliant’s move has you reassessing the tech space, it could be a useful moment to scan a curated set of 33 AI infrastructure stocks as potential comparison points.

    With Ralliant now trading at US$41.18, sitting on a recent net loss, an implied intrinsic discount and an unused US$200 million buyback, is the market overlooking value here or already pricing in whatever growth lies ahead?

    Most Popular Narrative: 19.3% Undervalued

    Ralliant’s most followed narrative sets a fair value of $51 per share against the last close at $41.18, framing the current loss making picture alongside a potential recovery story that analysts have mapped out in detail.

    Planned growth focused CapEx at 2% to 3% of revenue and reinvestment of 50 to 100 basis points of margin into commercial, innovation and manufacturing initiatives are aimed at expanding capacity in defense and utilities and accelerating product refresh cycles, which can support medium term revenue growth and earnings power.

    Read the complete narrative.

    Want to see how that spending plan supposedly flips today’s loss into future profits? The narrative leans on steadier growth, higher margins and a richer earnings multiple. Curious which specific revenue step ups and profit levels are baked into that $51 fair value and how long the market is assumed to wait?

    Result: Fair Value of $51 (UNDERVALUED)

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

    However, this hinges on EA Elektro Automatik not facing further reset expectations and on China demand stabilising sufficiently to support both core segments.

    Find out about the key risks to this Ralliant narrative.

    Build Your Own Ralliant Narrative

    If you see the story differently, or prefer to weigh the assumptions yourself, you can build a data backed view in minutes: Do it your way.

    A great starting point for your Ralliant research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

    Looking for more investment ideas?

    If Ralliant has sharpened your focus, do not stop here. You could be missing other opportunities that fit your style just as well or even better.

    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.