Today, Thursday, February 1, 2024,The New York Stock Exchange welcomes executives and guests of Amer Sports, Inc. (NYSE: AS) to celebrate its listing. To honor the occasion, Jie Zheng, Chief Executive Officer, and Shizhong Ding, Board Chairman & Executive Director of ANTA Sports, joined by Lynn Martin, NYSE rings The Opening Bell®.
Photo Credit: NYSE
Amer Sports (NYSE:AS) has quietly put together a strong run, with the stock climbing about 34% year to date and roughly 51% over the past year as revenue and earnings growth pick up.
That move has been reinforced by a sharp 30 day share price return of about 31% and a 1 year total shareholder return just over 50%, suggesting momentum is building as investors lean into its growth story.
If Amer Sports’ run has you thinking about what else could surprise to the upside, this is a good moment to explore fast growing stocks with high insider ownership.
Yet with Amer Sports still trading around 20% below consensus price targets despite brisk growth, the key question now is whether the market is underestimating its earnings power or is already pricing in the next leg of expansion.
Most Popular Narrative Narrative: 16.6% Undervalued
With Amer Sports closing at $38.68 versus a narrative fair value nearer to the mid 40s, the valuation case hinges on aggressive growth and margin expansion.
Ongoing investment in direct-to-consumer channels (both physical stores and e-commerce) is fueling higher full-price sales, reduced markdowns, and enhanced customer engagement, supporting scalable top-line growth and driving adjusted operating margin expansion.
Curious how double digit growth, fatter margins, and a rich future earnings multiple can all coexist in one story? See how these assumptions stack up against that fair value call.
Result: Fair Value of $46.38 (UNDERVALUED)
However, the narrative could unravel if Asia Pacific growth stalls or heavy DTC expansion lifts costs faster than revenue and margin gains materialize.
Another Way to Look at Valuation
While the growth narrative suggests upside, Amer Sports trades on a rich 68.9x earnings multiple, far above the US Luxury industry at 20.6x and peers at 35.7x, and well above its 28.4x fair ratio. That gap points to real valuation risk if execution slips. Does the story still hold up?
Build Your Own Amer Sports Narrative
If you are not completely sold on this view, or simply prefer running your own numbers, you can build a custom scenario in minutes with Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Amer Sports.
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