A Look at Autoliv (ALV) Valuation Following Dividend Hike and Signs of Ongoing Financial Strength
Autoliv (ALV) announced a 2% increase to its quarterly dividend for the fourth quarter of 2025, signaling ongoing financial confidence and a commitment to returning value to shareholders.
See our latest analysis for Autoliv.
After the dividend increase was announced, Autoliv’s share price has shown steady momentum, gaining more than 30% year-to-date and delivering a 26.78% total shareholder return over the past twelve months. The company’s new dividend builds on a strong track record and reflects continued optimism from investors who have seen long-term gains of nearly 55% in total return over five years.
If the latest dividend boost sparked your interest, now could be the perfect opportunity to broaden your research and discover See the full list for free.
Yet with shares climbing more than 30% so far this year and analysts expecting further upside, investors are left to ponder whether Autoliv is still undervalued at current levels or if future growth is already priced in.
Most Popular Narrative: 11.3% Undervalued
With Autoliv’s last close at $120.76 and the most popular narrative fair value set at $136.22, there is a meaningful gap that gets attention, especially as current prices are sitting well below these forward-looking estimates.
Expansion of Autoliv's business into new mobility segments (such as safety solutions for smaller Japanese K-cars and innovative EV platforms) demonstrates the company's ability to adapt to shifting industry trends, opening up additional revenue streams and counterbalancing cyclical weakness in other segments.
Curious what numbers are fueling this bullish outlook? The narrative’s future plans rest on a bold ramp-up in both profit margins and overall scale. Want to know which one factor could tip the balance for Autoliv's valuation? Dive in to uncover what might surprise even seasoned market-watchers.
Result: Fair Value of $136.22 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, slowing global vehicle production and persistent trade uncertainty could quickly undercut the bullish case, which may make future returns far less predictable.
Find out about the key risks to this Autoliv narrative.
Build Your Own Autoliv Narrative
If the current narrative does not align with your perspective, or if independent analysis is more your style, you can shape your own Autoliv story in just a few minutes with Do it your way.
A great starting point for your Autoliv research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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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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