Polestar (NasdaqGM:PSNY): Assessing Valuation After Nasdaq Minimum Bid Price Non-Compliance Notice

Polestar Automotive Holding UK (NasdaqGM:PSNY) has received a notice from Nasdaq that its shares are currently trading below the $1.00 minimum bid price requirement. This regulatory update highlights the company’s status on the exchange and outlines potential implications for shareholders.

See our latest analysis for Polestar Automotive Holding UK.

The Nasdaq notice comes at a challenging time for Polestar, as the 1-year total shareholder return is down 39% and its latest share price sits at $0.75, with momentum fading in recent months. Even though Polestar recently expanded its European footprint through a new dealership partnership, those positive developments have yet to boost investor confidence. Return figures highlight both the uphill climb and the lingering concerns about valuation and risk.

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With shares trading well below their recent highs and analysts forecasting upside to target prices, investors may be wondering if this is a compelling entry point or if the market is already factoring in all of Polestar's future growth prospects.

Most Popular Narrative: 24.6% Undervalued

Compared to the last close at $0.75, the most widely tracked narrative puts Polestar’s fair value higher, signaling upside according to consensus. What is fueling this estimate? A deeper look at future profitability and key operating changes is crucial to understanding this outlook.

Persistent high cash burn, reliance on external funding, and a lack of clear path to sustainable profitability raise the risk of further shareholder dilution through equity issuance. This could potentially depress EPS and constrain future investment.

Read the complete narrative.

Curious which growth levers and financial assumptions get Polestar this bullish narrative? The real drama lies in what analysts predict for revenue, profits, and fundamental margins. Dig in for the numbers and see what could surprise the market.

Result: Fair Value of $1.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, robust sales growth and Polestar's expanding presence in key markets could help cushion long-term revenue, even if current headwinds persist.

Find out about the key risks to this Polestar Automotive Holding UK narrative.

Another View: Price-To-Sales Tells a Different Story

Looking at the price-to-sales ratio, Polestar appears attractively valued compared to industry peers. Its ratio stands at 0.7x, which is significantly lower than both the US Auto industry average of 1.1x and the peer group average of 1.7x. However, the fair ratio is only 0.4x. This could mean the market still expects more growth or is overlooking risk. How might shifting market sentiment influence this disconnect?

Story Continues

See what the numbers say about this price — find out in our valuation breakdown.NasdaqGM:PSNY PS Ratio as at Nov 2025

Build Your Own Polestar Automotive Holding UK Narrative

For those who like to challenge the consensus and dig into the numbers themselves, you can research the data and shape your own view in just a few minutes. Do it your way

A great starting point for your Polestar Automotive Holding UK research is our analysis highlighting 1 key reward and 3 important warning signs 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.

Companies discussed in this article include PSNY.

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