SES AI stock snapshot and recent performance

SES AI (SES) has drawn fresh attention as investors reassess battery and energy storage names, with the stock trading around US$0.95 and recent returns showing mixed short and longer term performance.

At a latest share price of US$0.95, SES AI’s recent pressure is clear, with a 30-day share price return of 42.76% and a year to date share price return decline of 50.51%, while the 1-year total shareholder return of 69.59% highlights how sentiment around future potential and risk has swung sharply over time.

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With SES AI trading near US$0.95, a market cap around US$352.7m and analyst targets pointing higher, the key question is whether this high risk battery name is cheaply priced or already reflects future growth.

Most Popular Narrative: 34% Undervalued

SES AI’s most followed narrative, according to DValue, pegs fair value at $1.44 per share, compared with the latest close of $0.95. This is a meaningful gap that hinges on aggressive revenue scaling and margin assumptions.

Reported $2.0 million in fourth quarter revenue; an accelerated revenue ramp is expected in 2025

Curious what kind of revenue ramp underpins that valuation gap, and how margin assumptions and future multiples combine to justify the projected fair value.

Result: Fair Value of $1.44 (UNDERVALUED)

However, this depends on SES AI turning projected 2025 revenue into sustainable growth while managing ongoing losses of US$73.04m and cash usage that could pressure funding needs.

Another View: Pricing Risk Through Sales Multiples

The DValue narrative points to a fair value of $1.44 per share, yet SES AI trades on a P/S of 16.6x, compared with a fair ratio of 9.7x, a peer average of 10.9x, and a US Electrical industry average of 2.1x. That is a wide gap for a business still posting losses, so how comfortable are you paying this premium for unproven profitability?

Next Steps

With such mixed signals on value, risk and future potential, it makes sense to review the numbers yourself and decide quickly where you stand based on the 1 key reward and 2 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.