Recent weakness in technology stocks tied to renewed US Europe trade tensions has put Samsara (IOT) on many investors’ radar, as sector wide selling pressures the shares despite several positive business updates.

Those trade driven selloffs have left Samsara shares at US$32.10, with a 30 day share price return of 12.2% and a 90 day share price return of an 18.22% decline. The 3 year total shareholder return of 133.28% still points to strong longer term momentum.

If recent volatility in connected operations and AI linked names has you reassessing your watchlist, it could be a useful moment to look at high growth tech and AI stocks as potential next ideas to research.

So with Samsara now at US$32.10 after recent swings, a 3 year total return above 100% and analyst targets sitting higher, is there still value on the table, or is the market already pricing in future growth?

Most Popular Narrative: 36.3% Undervalued

Against Samsara's last close of $32.10, the most widely followed narrative points to a fair value of about $50.36, built on detailed long term forecasts.

The company is leveraging a vast data asset, processing over 14 trillion data points annually. This positions Samsara to enhance its offerings using AI, creating new products and services that can drive operational efficiencies and safety improvements for their customers, potentially leading to higher adoption and market share. Impact: Revenue and net margins.

Curious what earnings power is baked into that valuation, how fast revenue is assumed to compound, and what margin profile is implied by an 8.43% discount rate and a very high future earnings multiple? The full narrative lays out those building blocks in plain numbers.

Result: Fair Value of $50.36 (UNDERVALUED)

However, this depends on long enterprise sales cycles and early stage AI monetisation. Any disruption to leadership or go to market execution could challenge that thesis.

Another View: Price To Sales Sends A Different Signal

While the most popular narrative leans on long term forecasts and arrives at a fair value of about $50.36, the current P/S ratio of 12.2x paints a different picture. That is richer than both peers at 7x and the US Software industry at 4.7x, and also above the fair ratio of 9.8x. For you, that gap could mean paying up for growth expectations. How comfortable are you with that premium?

Build Your Own Samsara Narrative

If you see the numbers differently or prefer to run your own checks, you can build a tailored Samsara view in minutes by starting with Do it your way.

A great starting point for your Samsara research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

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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.