Is Autoliv (ALV) Undervalued After Reaffirming Its Quarterly Dividend?
Autoliv Inc. ALV | 0.00 |
Autoliv (ALV) has reaffirmed its shareholder payout with a quarterly dividend of US$0.87 per share, payable on 15 September 2026. The ex dividend and record dates are both set for 28 August 2026.
At a latest share price of US$120.76, Autoliv’s short term share price performance has been fairly muted, while the 1 year and multi year total shareholder returns of 4.62%, 39.50% and 53.92% suggest longer term momentum has been stronger.
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Autoliv’s share price has eased back over the past day and year to date, even as total returns over longer periods have been stronger. Does that recent cooling still leave the risk reward tilted in favour of new buyers, once you look at valuation next?
Most Popular Narrative: 8.6% Undervalued
Against Autoliv's last close at $120.76, the most followed narrative points to a fair value of $132.18, which frames the stock as undervalued using an 8.64% discount rate tied to its projected earnings path.
Heightened global focus on vehicle safety and increasingly strict automotive safety regulations are driving higher safety content per vehicle, which is expected to support sustained top-line growth and incremental margin improvement as Autoliv leverages its leadership in advanced airbags and seatbelts.
Want to see what sits behind that earnings and margin story? The narrative leans on measured revenue growth, firmer profitability and a future earnings multiple that differs from today. The full set of assumptions joins those threads into the fair value that underpins this view.
Result: Fair Value of $132.18 (UNDERVALUED)
However, Autoliv’s story could look very different if higher tariffs squeeze margins or if slower global vehicle production caps demand for its safety systems.
Next Steps
With Autoliv presenting both potential setbacks and appealing strengths, it makes sense to move quickly and test the story against your own expectations. To consider both sides of the argument, review the full breakdown of 3 key rewards 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.
