SES AI stock performance snapshot

SES AI (SES) has drawn fresh attention as investors reassess high risk battery technology stocks, with the share price recently closing at US$0.92 and the market cap sitting near US$362.7m.

The recent 1 day share price return of a 6.24% decline, alongside a 7 day share price return of a 12.29% decline and a 90 day share price return of a 51.01% decline, contrasts with a 1 year total shareholder return of 2.19%. This suggests that short term momentum has faded while longer term holders have seen only modest gains overall.

If you are comparing SES AI with other battery and electrification plays, it can help to broaden your watchlist with 40 AI infrastructure stocks

With SES AI trading at US$0.92 and the average analyst price target at US$2.70, the gap is hard to ignore. The key question is whether this discount signals an undervalued high-risk battery stock or whether the market is already pricing in expectations for future growth.

Most Popular Narrative: 36% Undervalued

With SES AI last closing at $0.92 against a narrative fair value of $1.44, the gap is clear and presents a very different picture compared with recent price action, according to DValue.

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

This raises questions about what underpins the revenue ramp story and the fair value gap. The narrative focuses on rapid top line growth and future margins and invites a closer look at how those elements fit together.

Result: Fair Value of $1.44 (UNDERVALUED)

However, the story still carries clear risks, including ongoing net losses of US$72.706 million and reliance on projected 2025 revenue that is not yet realized.

Another view: rich sales multiple, different story

That $1.44 fair value from the narrative sits alongside a very different signal from the P/S multiple. SES AI trades around 15.5x sales, compared with 2.8x for the US Electrical industry and a fair ratio estimate of 7.9x. That is a wide gap, and it points to meaningful valuation risk if expectations soften.

For context on how this sales multiple stacks up against peers and the fair ratio the market could move toward, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With mixed signals on value and recent price pressure in mind, it makes sense to review the numbers yourself and decide where you stand. If you want a quick way to balance potential upside with the issues investors are worried about, check out the 1 key reward and 2 important warning signs

Looking for more investment ideas?

If SES AI has your attention, do not stop here. Broaden your opportunity set now so you can compare this story with other compelling setups on your radar.

• Target potential bargains by scanning companies that combine quality fundamentals with attractive pricing through the 51 high quality undervalued stocks.
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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.