A Look At Tuya (TUYA) Valuation As New Share Buyback Targets Up To 10% Of Shares

Tuya (NYSE:TUYA) has begun a shareholder-authorized share repurchase program, allowing buybacks of up to 60,972,194 shares, or 10% of issued capital, aimed at supporting net assets and earnings per share.

See our latest analysis for Tuya.

Tuya’s latest share repurchase plan comes after a mixed pattern in its share price, with a 7 day share price return of 5.14% but a 90 day share price return of 12.79%. At the same time, the 1 year total shareholder return of 40.65% points to stronger longer term momentum.

If you are looking beyond Tuya for other AI and software names, this could be a good moment to review high growth tech and AI stocks as potential additions to your watchlist.

With Tuya trading at US$2.25, showing a modest intrinsic discount and sitting below the average analyst price target, the key question is whether the recent buyback signals undervaluation or whether the market already reflects its future growth.

Most Popular Narrative: 32.2% Undervalued

Tuya’s most followed narrative points to a fair value above the last close of US$2.25, with that gap tied directly to future earnings power.

The continued global proliferation of IoT devices, evidenced by strong growth in developer numbers, cross-category AI adoption, and expansion into new product verticals (such as AI energy solutions, toys, and pet care), positions Tuya to benefit from expanding end markets, which should drive sustained top-line growth and increased diversification of revenue streams.

Read the complete narrative.

Curious what sits behind this valuation call? It rests on steady revenue expansion, rising profit margins and a future earnings multiple that leans on premium software pricing.

Result: Fair Value of $3.32 (UNDERVALUED)

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

However, the story could shift quickly if global trade or tariff pressures worsen, or if intensifying IoT competition squeezes Tuya’s margins more than analysts currently factor in.

Find out about the key risks to this Tuya narrative.

Build Your Own Tuya Narrative

If you see the numbers differently or want to stress test your own thesis, you can spin up a complete Tuya narrative in just a few minutes: Do it your way.

A great starting point for your Tuya research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Tuya has your attention, do not stop there. Use the same framework to quickly scan other opportunities that might fit your goals and risk comfort.

• Spot early stage potential by checking out these 3554 penny stocks with strong financials that pair smaller market caps with comparatively stronger fundamentals.
• Target AI growth themes by reviewing these 26 AI penny stocks that focus on companies riding advances in artificial intelligence.
• Zero in on value by using these 875 undervalued stocks based on cash flows to see which names currently trade at a discount to their cash flow profiles.

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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