• If you are wondering whether Avantor stock is starting to look mispriced, its recent moves and current valuation metrics give you quite a bit to think about.
• The share price closed at US$10.28 recently, with a gain of 7.3% over the past week and 12.7% over the past month, even though the stock is still down 10.3% year to date and has fallen 24.0% over the past year.
• These price moves are set against a backdrop of ongoing attention on Avantor's position in life sciences supplies and services, as investors consider how its product portfolio and market exposure fit into their portfolios. Recent coverage has focused on how the stock trades relative to its fundamentals and sector peers, which helps frame the recent volatility.
• On Simply Wall St's valuation model, Avantor currently has a value score of 5/6. The sections that follow will compare different valuation approaches before finishing with a broader way to think about what this score really tells you.

Approach 1: Avantor Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what Avantor stock could be worth by projecting future cash flows and discounting them back to today using a required rate of return.

For Avantor, the model uses a 2 Stage Free Cash Flow to Equity approach, starting with last twelve months Free Cash Flow of about $433.2 million. Analysts provide several years of Free Cash Flow estimates, and Simply Wall St then extrapolates further, with projected Free Cash Flow of $679.0 million in 2030 based on this pattern.

These projected cash flows, together with a terminal value after the forecast period, are discounted back to today in dollars. On this basis, the model arrives at an estimated intrinsic value of $14.55 per share.

Compared to the recent share price of $10.28, the DCF output suggests Avantor is trading at a 29.3% discount to this intrinsic estimate, which indicates the stock is undervalued under these assumptions.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Avantor is undervalued by 29.3%. Track this in your watchlist or portfolio, or discover 44 more high quality undervalued stocks.

Approach 2: Avantor Price vs Sales

For a company like Avantor, where investors often focus on revenue and market positioning, the P/S ratio can be a useful way to think about value because it looks at what you are paying for each dollar of sales, regardless of current earnings swings.

Growth expectations and risk matter here, because a higher P/S ratio is usually associated with companies that investors expect to grow faster or that they see as lower risk, while slower growing or higher risk companies typically trade on lower multiples.

Avantor currently trades on a P/S ratio of 1.07x. This sits well below the Life Sciences industry average P/S of 3.96x and below a peer group average of 6.31x, which suggests the stock trades at a lower revenue multiple than many comparable companies.

Simply Wall St’s Fair Ratio for Avantor is 2.58x, which is a proprietary estimate of what the P/S ratio might be given factors such as its earnings growth profile, industry, profit margins, market cap and specific risks. Because it adjusts for these company level drivers rather than relying only on broad peer or industry comparisons, it can offer a more tailored anchor for valuation.

Comparing Avantor’s current P/S of 1.07x with the Fair Ratio of 2.58x indicates that the stock is trading below this Fair Ratio based benchmark.

Result: UNDERVALUED

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Upgrade Your Decision Making: Choose your Avantor Narrative

Earlier the article mentioned that there is an even better way to understand valuation. This is where Narratives come in, giving you a simple story for Avantor that connects your view of its business to your own forecast and fair value instead of just relying on a single P/E or DCF output.

A Narrative on Simply Wall St is your chance to spell out how you think Avantor’s markets, margins, and balance sheet might play out. You can then tie that story directly to assumptions like future revenue, earnings, and profit margins, which together produce a Fair Value that you can compare with the current share price to decide whether the stock looks attractive or stretched on your terms.

These Narratives sit inside the Avantor Community page on Simply Wall St. They are used by millions of investors and update automatically when new information such as earnings, guidance or news is added, so your fair value view keeps moving with the data rather than staying frozen at the day you built the model.

For example, one investor might build a more cautious Avantor Narrative that lines up with a Fair Value around US$7.00. Another might build a more optimistic Narrative closer to US$15.99, and seeing that spread in the Community helps you judge where your own expectations fit between the most pessimistic and most optimistic views already in the market.

For Avantor, however, we will make it really easy for you with previews of two leading Avantor Narratives:

On Simply Wall St, these Narratives sit side by side so you can quickly compare what has to be true for Avantor stock to look under or overvalued on different sets of assumptions.

Fair value: US$15.99

Implied discount to this fair value compared to the recent US$10.28 share price: about 36%.

Revenue growth assumption: 2.23% a year.

• Assumes Avantor steadily grows revenue while lifting profit margins from a current loss into positive territory over the next few years.
• Frames digital tools, bioprocessing exposure, and international expansion as key supports for higher margins and long term free cash flow.
• Requires confidence that by 2029 Avantor earns more than US$400 million and trades on a P/E in the mid 30s, closer to bullish analyst expectations.

Fair value: US$7.00

Implied premium to this fair value compared to the recent US$10.28 share price: about 47%.

Revenue growth assumption: 1.27% a year.

• Assumes Avantor grows more slowly, with pressure on margins from higher costs, tougher regulation, and pricing needed to defend contracts.
• Highlights risks that automation, digital research tools, and customer concentration could limit growth in core consumables and lab products.
• Requires a lower P/E multiple in the mid teens on 2029 earnings, reflecting ongoing concern that expectations embedded in the current price may be too high.

Taken together, these two Avantor Narratives set out a wide but clearly defined range of outcomes. Your job is to decide which assumptions feel closer to how you see Avantor’s markets, margins, and balance sheet evolving, and whether the current US$10.28 share price fits better with the higher or lower fair value story for your own portfolio and risk tolerance.

If you want to see how other investors have joined the dots between these data points and their fair values, you can review the wider Community view through the See what the community is saying about Avantor.

Do you think there's more to the story for Avantor? Head over to our Community to see what others are saying!

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.