Pony AI (PONY): Taking Stock of Valuation After Recent Share Price Slide

Pony AI (PONY) has been generating conversation in recent weeks as investors watch the company’s share price slide nearly 25% over the past month. The change has sparked fresh evaluations of the company’s overall growth path and risk profile.

See our latest analysis for Pony AI.

The current 30-day share price return for Pony AI stands at -30.8%, reflecting a sharp swing in sentiment that follows several months of faded momentum. While the year started with some resilience, confidence has clearly cooled as investors reassess both risk and long-term growth prospects.

If Pony AI’s recent volatility has you rethinking where to search for opportunity, this is the perfect time to broaden your search and discover fast growing stocks with high insider ownership

With shares trading at a steep discount to some analyst price targets, the question remains: has market pessimism gone too far, or is Wall Street correctly anticipating the risks to Pony AI’s future growth?

Price-to-Book Ratio of 7.1: Is it justified?

Pony AI's shares are currently valued with a price-to-book ratio of 7.1. This places the company at a significant discount compared to its closest peer group, which averages a much steeper 13.1.

The price-to-book ratio shows how much investors are willing to pay for each dollar of net assets on the balance sheet. For tech companies like Pony AI, this ratio can reflect both market optimism about intangible assets and the risk of ongoing losses.

With Pony AI trading well beneath the peer group average, the numbers suggest the market is cautious about the company’s ability to convert rapid growth into consistent returns. High ratios usually reward expected profitability. In Pony AI’s case, the market is not pricing in outsized future gains yet.

Against the broader US Software industry, however, Pony AI looks expensive, as the sector averages just 3.7. This tension between relative peer value and industry pricing hints at a nuanced market debate about the company’s prospects.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 7.1 (UNDERVALUED vs. peers / OVERVALUED vs. industry)

However, ongoing net losses and sector volatility could continue to pressure Pony AI’s shares, which may challenge the case for a rapid rebound.

Find out about the key risks to this Pony AI narrative.

Another View: Discounted Cash Flow Perspective

Looking from another angle, our DCF model estimates Pony AI's fair value at $21.75 per share, while the current price is just $14.04. This model suggests the stock could be undervalued by over 35%. Is the market missing something about Pony AI’s future earnings power, or is caution justified?

Story Continues

Look into how the SWS DCF model arrives at its fair value.PONY Discounted Cash Flow as at Nov 2025

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Pony AI for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 876 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Pony AI Narrative

If you see Pony AI differently, or want to run your own numbers, you can quickly build your own view and add your perspective in just minutes. Do it your way

A great starting point for your Pony AI research is our analysis highlighting 2 key rewards and 2 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 PONY.

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