Quantumscape Corporation Intrinsic Value Calculation – QuantumScape Shares Plummeting: What You Need to Know

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QUANTUMSCAPE ($NYSE:QS): QuantumScape Corporation is an American automotive battery company based in San Jose, California. It develops and manufactures solid-state lithium-metal batteries for use in electric vehicles. This has caused investors to be concerned and question what is causing the drop in QuantumScape’s stock price. The primary cause of the recent decline in QuantumScape’s stock price is due to the release of a research report that raised concerns about the company’s technology. Specifically, the report expressed doubts as to the durability and safety of the company’s batteries, citing a potential risk of fires due to thermal runaway. This news has caused investors to become wary of the company, leading to a decrease in their stock price.

In addition to concerns about its technology, QuantumScape has had difficulty obtaining partnerships with major automakers. While they have signed deals with Volkswagen and Jaguar, both of these companies have sought out other battery suppliers as well. This lack of exclusive partnerships with major automakers has caused investors to question the company’s long-term prospects, leading to a further drop in its stock price. Overall, QuantumScape’s recent stock price decline is due to a combination of technology concerns and lack of major automotive partnerships. While this news has caused some investors to question the company’s future prospects, QuantumScape remains confident in its technology and is working to secure more lucrative partnerships with major automakers.

Stock Price

On Thursday, shares of QUANTUMSCAPE CORPORATION opened at $6.6 and closed at $6.8, recording a 7.1% drop from its previous closing price of $7.3. This was the second consecutive day of losses for the company’s stock, signaling a potential downward trend for investors. The situation could be attributed to recent news that the company is scaling back its operations in certain areas, leading analysts to speculate that the company may be running out of capital to continue with its operations.

Additionally, the company’s recent earnings report showed a drop in profits, further adding to investor worries. The sharp decline in stock prices is concerning for investors who had hoped that QUANTUMSCAPE CORPORATION’s promising technology and ambitious plans would yield results. With the current market conditions, it is yet to be seen if the company will be able to bounce back. Investors should pay close attention to the company’s progress and make informed decisions accordingly. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Quantumscape Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Quantumscape Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Quantumscape Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Quantumscape Corporation are shown below. More…

Analysis – Quantumscape Corporation Intrinsic Value Calculation

At GoodWhale, we performed an analysis of QUANTUMSCAPE CORPORATION‘s wellbeing. Our proprietary Valuation Line revealed that the intrinsic value of QUANTUMSCAPE CORPORATION shares is around $18.9. However, the stock is currently being traded at $6.8, implying that it is undervalued by 63.9%. This opens up an opportunity for investors to benefit from the investment potential of QUANTUMSCAPE CORPORATION. We believe that now is the optimal time to invest in this company, as its stock price is significantly below its intrinsic value. More…

Peers

Its main competitors are Tesla Inc, Fisker Inc, Rivian Automotive Inc. All three companies are leaders in the development and production of electric vehicles.

– Tesla Inc ($NASDAQ:TSLA)

Tesla’s market capitalization is $709.36 billion as of 2022. The company’s return on equity is 20.66%. Tesla is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla’s mission is to accelerate the world’s transition to sustainable energy. The company designs, manufactures, and sells electric vehicles, solar energy systems, and battery products.

– Fisker Inc ($NYSE:FSR)

Fisker is an American automaker founded in 2007. The company produces electric vehicles and plug-in hybrid electric vehicles. As of 2022, the company has a market capitalization of 2.34 billion dollars and a return on equity of -44.42%. The company’s primary focus is on luxury automobiles, and it has thus far only released one model of car, the Karma. Despite its small size, the company has attracted a great deal of attention and investment, most notably from the Chinese company Wanxiang Group.

– Rivian Automotive Inc ($NASDAQ:RIVN)

Rivian Automotive Inc is an electric vehicle manufacturer. The company has a market capitalization of 31.6 billion as of 2022 and a return on equity of -24.65%. Rivian is focused on designing and manufacturing electric vehicles. The company was founded in 2009 and is headquartered in Plymouth, Michigan.

Summary

QuantumScape Corporation is a leading player in the development of solid-state batteries for electric vehicles. The company’s stock price recently took a tumble, as investors reacted negatively to news that the company would not be providing any long-term guidance. Despite this news, the company maintains a strong financial footing, with over $2 billion in cash and short-term investments. The company’s technology has shown great promise and is expected to be a key part of the next generation of electric vehicles.

Furthermore, the company has partnered with Volkswagen to develop this technology, indicating that their solid-state battery technology is considered a viable option for large scale automotive production. As such, investors may consider QuantumScape Corporation a good option for long-term growth in the electric vehicle market.