VinFast Auto (VFS) has drawn fresh attention after reporting Q1 2026 results alongside preliminary May deliveries, highlighting higher vehicle and two wheeler volumes in Vietnam, expanding international reach, and continued pressure from loss making operations.

Despite headlines around stronger deliveries, the recent share price tells a cautious story, with a 30 day share price return of down 24.26% and a 1 year total shareholder return of down 12.71%. This suggests enthusiasm around partnerships and Q1 growth is sitting alongside persistent concern about ongoing losses and execution risk.

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So with deliveries climbing, partnerships announced, and the stock now at US$3.09 after a year of double digit declines, are you looking at an undervalued EV contender, or a company where the market already prices in future growth?

Most Popular Narrative: 51% Undervalued

The most followed narrative places VinFast Auto's fair value at $6.30 per share versus the last close at $3.09, framing the recent sell off as a potential discount to a long term expansion and margin recovery story.

The rollout of dedicated VinFast charging infrastructure and ecosystem partnerships (GSM and V-GREEN) in Southeast Asia and beyond directly addresses the primary consumer barrier to EV adoption, supporting higher demand, increased deliveries, and ultimately greater revenue scale.

Curious how a loss making EV company can still support a higher fair value than today’s price? The narrative leans heavily on rapid revenue compounding, sustained margin repair, and a future earnings multiple that looks more like high growth tech than a traditional automaker.

Result: Fair Value of $6.30 (UNDERVALUED)

However, this hinges on VinFast reducing heavy cash burn and proving demand beyond intragroup channels, because weaker liquidity or softer true B2C volumes could quickly challenge that upside story.

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Another View: Sales Multiple Flashes Caution

The fair value story at $6.30 leans on long term earnings and margin repair, but today the stock trades on a P/S of 2x versus 1.7x for peers and 0.6x for the wider US Auto industry, while the fair ratio estimate is just 0.1x, raising clear valuation risk questions.

For a company still loss making and priced above both peers and its own fair ratio, this kind of gap can close in either direction. The key question is whether you believe future growth will be strong enough to justify that premium, or whether the market could push the multiple closer to that fair ratio over time. See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of optimism and concern feels familiar, consider acting while the story is still developing and weigh both sides using the 1 key reward and 3 important warning signs

Looking for more investment ideas?

If VinFast has you thinking harder about risk and reward, do not stop here. Broaden your watchlist now so you are not late to the next story.

• Spot potential high growth stories early by scanning the 24 elite penny stocks with strong financials before they attract wider attention.
• Zero in on quality at a discount by reviewing the 46 high quality undervalued stocks that combine solid fundamentals with appealing valuations.
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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.