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When InvestingPro’s Fair Value models identified Mobileye Global Inc. (NASDAQ:MBLY) as significantly undervalued in September 2024, the autonomous driving technology leader was trading at just $11.15 per share. This analysis proved prescient, as the stock has since delivered a remarkable 59% return for investors who followed the signal. For investors seeking similar opportunities, InvestingPro’s Most undervalued list continues to identify potentially mispriced stocks using the same proven methodology.
Mobileye, a pioneer in advanced driver-assistance systems (ADAS) with a commanding 70% market share, had experienced a challenging period leading up to the Fair Value signal. The stock had declined 32% in the preceding month, creating an attractive entry point despite the company’s strong market position and technological leadership in computer vision and AI.
The Fair Value analysis highlighted several key factors supporting an upward revaluation, including the company’s extensive experience with over 170 million vehicles using its technology, strong R&D capabilities, and healthy gross margins of 44.8%. At the time, Mobileye reported revenues of $1.845 billion, though it was still working toward profitability.
The subsequent price movement validated InvestingPro’s analysis, with the stock climbing steadily through late 2024, particularly during November and December when it saw significant gains. Recent developments, including a new position taken by Steve Cohen’s Point72 and several positive analyst ratings, have further supported the stock’s upward trajectory.
The company’s fundamentals have continued to evolve, with revenue growing to $1.853 billion in the most recent quarter. While EBITDA has faced some pressure, analysts maintain optimistic long-term views, with Barclays (LON:BARC) recently setting a $22 price target and Canaccord Genuity highlighting the company’s autonomous vehicle market leadership.
InvestingPro’s Fair Value methodology combines multiple valuation approaches, including discounted cash flow analysis, comparable company metrics, and analyst consensus targets, to identify stocks trading significantly above or below their intrinsic value. This comprehensive approach helped identify Mobileye’s potential when market sentiment was particularly negative.
For investors looking to uncover similar opportunities, InvestingPro offers advanced valuation tools, real-time Fair Value alerts, and comprehensive financial analysis. Learn more about InvestingPro to access these powerful features and stay ahead of the market with data-driven investment decisions.