V2X (VVX) drew investor interest after debuting its new Tempest Mobile Fires Platform and showcasing a suite of integrated defense solutions at the 2025 AUSA Annual Meeting in Washington, D.C.

Momentum appears to be building for V2X, with the share price jumping over 26% in the last 90 days and notching a 29% gain year-to-date. However, the one-year total shareholder return remains slightly negative. The surge following fresh product launches and a high-profile AUSA showing suggests investors are growing more optimistic about the company’s evolving role in defense tech, even as longer-term returns reflect some recent volatility.

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With V2X’s shares rallying and its valuation now just a few percentage points below analyst targets, the key question is whether the stock is still undervalued after this run or if the market is already anticipating future growth.

Most Popular Narrative: 4.3% Undervalued

With V2X shares closing at $61.36 and the most-followed narrative estimating fair value at $64.09 using a 9.04% discount rate, expectations remain slightly ahead of market pricing. This hints at further room for upside if analyst projections play out.

The company is experiencing substantial growth in its addressable market due to rising global defense spending, particularly driven by heightened geopolitical tensions and military threats. This is evident in its robust $50 billion pipeline and recent major contract wins, which are expected to support long-term revenue growth.

What if the secret behind V2X’s fair value is a combination of bold forecasts in both recurring revenues and margin expansion? The real story is in the aggressive projections, not just today’s headlines. Ready to see which ambitious assumptions drive this target?

Result: Fair Value of $64.09 (UNDERVALUED)

However, ongoing delays in contract awards and a declining backlog could present challenges to the current growth story and put pressure on future revenue visibility.

Build Your Own V2X Narrative

Want to dig deeper or have a different perspective? You can examine the data, uncover your own insights, and craft your unique take in just minutes with Do it your way.

A great starting point for your V2X research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.