Sasol shares surge 63% after InvestingPro’s undervalued call in March

Published 19/11/2025, 12:12
Sasol shares surge 63% after InvestingPro’s undervalued call in March

In March 2025, InvestingPro’s Fair Value models identified Sasol Limited (NYSE:SSL) as significantly undervalued, presenting a compelling investment opportunity. Eight months later, the stock has delivered an impressive 63% return, demonstrating how identifying a stock’s intrinsic value can lead to substantial investment gains. Fair Value analysis helps investors find better entry points, understand a stock’s true worth, and make more informed decisions by combining multiple valuation methodologies. For investors seeking similar opportunities, InvestingPro’s Most undervalued list regularly highlights stocks with potential for significant upside.

Sasol Limited is a South African energy and chemical company operating globally with a primary listing on the NYSE. When InvestingPro’s Fair Value models flagged the stock on March 27, 2025, Sasol had a market capitalization of $3.19 billion, with revenues of $13.83 billion and EBITDA of $2.78 billion. Despite these solid fundamentals, the company was reporting negative earnings per share of -$4.10, and the stock had been struggling with mostly negative monthly returns in the preceding six months. However, InvestingPro’s financial health score of 4.38 indicated the company maintained a strong financial position despite temporary challenges.

At the time of the Fair Value signal, Sasol was trading at just $4.10 per share, while InvestingPro’s models calculated a Fair Value of $6.09, suggesting a potential upside of 48.5%. The stock reached this target price by September 2025 and continued climbing. As of November 19, 2025, Sasol trades at $7.37, representing a 63.4% return in just eight months. This performance validates InvestingPro’s Fair Value methodology and timing. Most impressively, the company’s EPS has improved dramatically from -$4.10 to a positive $0.60, confirming the fundamental strength that InvestingPro’s models detected beneath the surface.

Recent developments have been mixed but haven’t derailed Sasol’s strong performance. While Moody’s downgraded the company’s outlook to negative while affirming its Ba1 rating, the stock has continued to climb. The company announced board changes with the appointment of a new director, and executives traded shares following vesting periods. Fundamentally, Sasol has shown slight revenue growth to $14.07 billion while maintaining stable EBITDA. InvestingPro’s current Fair Value estimate for Sasol stands at $10.27, suggesting potential for further upside of 39.3% from current levels.

InvestingPro’s Fair Value methodology aggregates multiple valuation approaches to provide a comprehensive view of a stock’s intrinsic worth. The system considers discounted cash flow models, comparable company analyses, dividend discount models, and analyst consensus targets. By incorporating a margin of safety and analyzing future cash flow potential, the Fair Value model can identify opportunities where market sentiment has temporarily disconnected from fundamental value.

Investors looking to replicate this success with other stocks can access InvestingPro’s Fair Value analysis across thousands of global equities. Beyond Fair Value, InvestingPro offers financial health scores, fundamental data tracking, and valuation metrics that can help identify tomorrow’s winners before the market catches on. While past performance doesn’t guarantee future results, InvestingPro’s systematic approach to valuation has consistently helped investors find opportunities like Sasol. Learn more about InvestingPro to discover potentially undervalued stocks in today’s market.

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