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Wondering whether Stellantis at €7.05 is a bargain or a value trap? This article breaks down what the current share price might really be telling you.
The stock has moved 5.0% over the last week and 23.6% over the last month, but year to date it shows a 27.4% decline and a 6.7% decline over the last year.
These swings sit against a backdrop of ongoing attention on Stellantis as a major global automaker, with investors watching how it positions itself across brands and markets. Recent coverage has focused on how the share price performance lines up with wider auto sector sentiment and company specific updates.
On Simply Wall St, Stellantis earns a valuation score of 5 out of 6. The next sections break down the different valuation approaches behind that number, then finish with a way of thinking about value that goes beyond any single model.
A Discounted Cash Flow, or DCF, model takes estimates of the cash Stellantis could generate for shareholders in the future and discounts those amounts back into today’s euros. The aim is to estimate what the business might be worth now.
For Stellantis, the last twelve months show free cash outflows of about €13.6b, so the model relies heavily on projected improvements. Analyst and extrapolated estimates used here point to free cash flow of €3.952b by 2030, with a two stage Free Cash Flow to Equity approach extending projections out to 2035. Simply Wall St converts all of those future figures into today’s money and sums them to reach an estimated intrinsic value per share of €15.81.
Relative to the current share price of €7.05, that DCF output suggests the stock is 55.4% undervalued based on these assumptions and inputs.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Stellantis is undervalued by 55.4%. Track this in your watchlist or portfolio, or discover 228 more high quality undervalued stocks.
STLAM Discounted Cash Flow as at Apr 2026
Price based on sales is a common way to look at established, revenue generating companies, especially when earnings can be distorted by one off items. P/S gives you a quick sense of how much investors are paying for each euro of revenue.
In general, higher expected growth or lower perceived risk can support a higher “normal” multiple, while slower growth or higher risk usually points to a lower one. For Stellantis, the current P/S ratio is 0.13x, compared with the Auto industry average of 0.74x and a peer group average of 2.33x.
Simply Wall St’s Fair Ratio for Stellantis is 0.41x. This proprietary metric is designed to estimate what a reasonable P/S might be, given factors such as earnings growth, industry, profit margins, market value and key risks. Because it blends these company specific inputs, it can be more tailored than a simple comparison with industry or peer averages, which may not share the same risk and growth profile.
Relative to that Fair Ratio of 0.41x, Stellantis’ current 0.13x P/S looks lower, which points to the shares trading below that model based reference point.
Result: UNDERVALUED
BIT:STLAM P/S Ratio as at Apr 2026
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Earlier it was mentioned that there is an even better way to understand valuation, so Narratives on Simply Wall St let you turn a clear story about Stellantis into concrete numbers by linking your view on its revenue, earnings and margins to a forecast and a Fair Value that you can compare with the current share price. This is all provided within an accessible tool on the Community page that updates as fresh news or earnings arrive. For example, one investor might lean toward a higher Fair Value closer to €11.92 based on confidence in 2027 margin expansion and EV or software partnerships, while another might anchor on a lower Fair Value closer to €5.00 because of concerns about 2026 margin pressure, tariff costs of €1b to €1.5b and execution risks around the EV transition.
For Stellantis, here are previews of two leading Stellantis Narratives:
🐂 Stellantis Bull Case
Fair value in this narrative: €8.06 per share
Implied undervaluation vs today: 12.6%
Assumed revenue growth: 3.68% a year
Analysts see electrification, new BEV platforms and refreshed brands as key drivers that could support revenue growth and higher margins over time.
Their forecasts build in revenue of €171.1b and earnings of €5.6b by 2029, with a future P/E of 5.8x and profit margins recovering from current loss-making levels.
They anchor on a consensus price target of €8.06, while stressing that there is a wide range of outcomes and that investors should sense-check the assumptions against their own view of Stellantis.
🐻 Stellantis Bear Case
Fair value in this narrative: €5.00 per share
Implied overvaluation vs today: 41.0%
Assumed revenue growth: 2.29% a year
Bearish analysts focus on Stellantis’ reliance on internal combustion vehicles, an extended brand line-up and rising input and tariff costs as sources of ongoing margin pressure.
Their model reflects softer revenue growth, lower net profit margins and a future P/E of 4.56x, feeding into a fair value of €5.00 that sits at the low end of published targets.
This camp sees 2026 and the surrounding years as a period where execution risk on EVs, software and cost control could justify the shares trading closer to the €5.00 level despite expected business improvement.
Putting these side by side gives you a clear anchor range for Stellantis, framed by what more optimistic and more cautious analysts are currently assuming about revenue growth, margins and valuation, so you can judge where your own view sits between the bull and bear narratives.
Do you think there’s more to the story for Stellantis? Head over to our Community to see what others are saying!
BIT:STLAM 1-Year Stock Price Chart
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 STLAM.MI.
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