A Look At Flex (FLEX) Valuation After Tariff Relief Lifts Trade Sentiment

Flex (FLEX) drew attention after the U.S. administration suspended planned tariffs on European allies, easing fears of a trade conflict as positive commentary on trade relations coincided with a 4.1% intraday share move.

See our latest analysis for Flex.

That tariff relief comes after a strong run for investors, with Flex’s 1-year total shareholder return of 47.59% and a very large 5-year total shareholder return of 381.73% contrasting with a flatter 30-day share price return of 1.54% and 90-day share price return of 0.68% as momentum cools slightly around the current US$64.72 level.

If this trade related move has you thinking about where else growth and resilience might be hiding in tech and manufacturing supply chains, it could be a good time to scan fast growing stocks with high insider ownership for other ideas.

With Flex trading around US$64.72 and only a small intrinsic discount indicated, plus a value score of 4, the real question is whether you see untapped upside here or whether the market is already pricing in future growth.

Most Popular Narrative: 12.2% Undervalued

The most followed narrative pins Flex’s fair value around $73.70, which sits above the recent $64.72 close and frames the stock as modestly undervalued.

The ongoing surge in demand for data center and AI infrastructure, requiring integrated power, cooling, and advanced IT hardware, positions Flex for sustained, outsized revenue growth, as evidenced by the 35% forecasted annual increase in its data center segment, supporting both topline expansion and higher portfolio margins.

Read the complete narrative.

Curious how a steady revenue outlook, rising margin assumptions, and a richer future earnings multiple all add up to that fair value gap? The full narrative lays out the step by step math behind those expectations and how they tie into Flex’s mix of power, cloud, and AI related business.

Result: Fair Value of $73.70 (UNDERVALUED)

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

However, you still need to weigh the concentrated exposure to a few large data center customers, as well as structurally thin margins that leave limited room for cost or pricing shocks.

Find out about the key risks to this Flex narrative.

Build Your Own Flex Narrative

If you see the story differently or just like testing the numbers yourself, you can build your own Flex narrative in minutes with Do it your way.

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

Looking for more investment ideas?

If you stop with just one stock, you risk missing other opportunities that might fit your style even better, so widen your search with a few focused screens.

• Spot early stage potential by reviewing these 3525 penny stocks with strong financials that pair smaller market caps with stronger financial profiles.
• Target growth themes by scanning these 24 AI penny stocks tied to artificial intelligence trends that could reshape future demand patterns.
• Prioritize value by checking these 876 undervalued stocks based on cash flows where current prices sit below cash flow based estimates.

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.

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