Hyliion Holdings (HYLN) is back in focus after its KARNO Power Module was named Consulting Specifying Engineer’s 2026 Most Valuable Product, while the same technology moves into U.S. Navy sea trials on the unmanned USX-1 Defiant vessel.

Hyliion’s recent U.S. Navy sea trial progress and product award headlines arrive alongside sharp share price swings, with the stock up 243% year to date on a share price return basis and a 1 year total shareholder return of 337%, although the 5 year total shareholder return is down 47%.

If this surge in interest around next generation power systems has your attention, it could be a good moment to see what else is moving across: 33 power grid technology and infrastructure stocks

With Hyliion now valued at about US$1.25b and trading at a discount to one analyst price target but a premium to some intrinsic estimates, investors may ask whether there is still a buying opportunity or whether potential future growth is already reflected in the current price.

Most Popular Narrative: 25% Overvalued

The most followed narrative pegs Hyliion’s fair value at $5 per share, which sits below the latest close of $6.25. This means the story assumes a lot has already been priced in.

Rising demand for reliable on site power at AI driven data centers, combined with the industry shift toward 800 volt DC architectures that match KARNO’s native output, positions Hyliion to win high value deployments that can materially expand product revenue and improve operating leverage.

Read the complete narrative. Read the complete narrative.

Curious what underpins that $5 fair value when the stock trades higher today? Revenue expectations, margin shifts and a rich future earnings multiple all sit at the core of this narrative.

Result: Fair Value of $5 (OVERVALUED)

However, this story can change quickly if UL certification or Navy deployments slip again, or if those letters of intent fail to convert into firm orders.

Another View: DCF Says Undervalued

While the popular narrative suggests Hyliion is about 25% overvalued at $6.25 versus a $5 fair value, the SWS DCF model points the other way, with an estimate of $9.39 per share, or about 33.5% above the current price. Which story do you think better fits your own assumptions about cash flows and risk?

For a closer look at how those future cash flows are treated in the SWS DCF model, Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hyliion Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 47 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of enthusiasm and caution around Hyliion has you thinking, now is a good time to review the numbers yourself and decide where you stand. You can then weigh up the 2 key rewards and 1 important warning sign.

Looking for more investment ideas?

Before you move on, put this research mindset to work across a wider watchlist so you do not miss other opportunities that could fit your goals.

• Target potential bargains by scanning 47 high quality undervalued stocks that combine quality fundamentals with prices that may sit below intrinsic worth.
• Prioritize resilience by checking 62 resilient stocks with low risk scores that score well on balance sheet strength and risk factors.
• Get ahead of the crowd by reviewing the screener containing 22 high quality undiscovered gems before they attract broader attention.

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.