VinFast Auto (VFS) stock is in focus after the company reported preliminary July 2026 domestic deliveries of 21,781 EVs in Vietnam, a 21% month on month increase, and 137,697 EVs year to date.

Even with VinFast Auto highlighting strong domestic EV deliveries and expansion plans into India, Indonesia and the U.S., recent share price momentum has been weak, with the stock down 11.6% over 90 days and the 3 year total shareholder return down 82.3%.

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VinFast Auto is pushing ahead on product, technology and new factories while the stock has fallen sharply over three years. The business story and the share price are telling very different stories. Which one are you really buying into?

Most Popular Narrative: 48.4% Undervalued

Based on the most followed narrative, VinFast Auto's fair value of $6.05 sits well above the last close of $3.12, which puts a spotlight on the assumptions behind that gap.

Transition to a more cost-efficient, next-generation vehicle platform and zonal E/E architecture is expected to materially lower bill of materials and production costs, improving gross and operating margins as scale and operational leverage increase.

Curious what this story really hinges on: revenue rising quickly, margins moving from deep losses toward industry levels, and a rich future earnings multiple doing the heavy lifting.

Result: Fair Value of $6.05 (UNDERVALUED)

However, there are clear pressure points in the VinFast Auto story, including heavy cash burn and ongoing losses, as well as uncertain demand once intragroup sales are stripped out.

Another View on VinFast Auto’s Valuation

The most followed VinFast Auto narrative leans on future earnings and a high implied P/E to argue the stock is undervalued. The P/S story is very different. VFS trades around 2x sales compared with about 0.7x for the US Auto industry and 1x for peers, while the fair ratio is just 0.1x. That gap points to meaningful valuation risk if sentiment or growth expectations reset. Which version of value do you place more weight on?

Next Steps

If the mixed tone on VinFast Auto so far feels hard to reconcile, now is a good time to review the numbers yourself and decide what really matters. To weigh both sides in one place, start with 1 key reward and 3 important warning signs.

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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.