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If you are wondering whether QuantumScape shares still make sense at today’s price, you are not alone, especially given how quickly sentiment around the stock can shift.
The share price closed at US$9.86 recently, with a 7 day return of an 8.8% decline, a 30 day return of a 5.1% decline and a year to date return of a 10.9% decline, while the 1 year return sits at 89.5% and the 3 year return at 1.5%, compared to a 5 year return of a 79.2% decline.
Recent news has continued to focus on QuantumScape’s progress in solid state battery technology and its potential role in future electric vehicle adoption. This context has helped shape how investors are weighing the company’s long term prospects against the risks reflected in the share price moves.
On our Simply Wall St valuation checks, QuantumScape currently scores 2 out of 6 for being undervalued. Next we will look at what different valuation approaches say about that score, before finishing with a broader way to think about value that goes beyond any single model.
QuantumScape scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting its future cash flows and then discounting those back to a present value using a required rate of return.
For QuantumScape, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is a loss of about $280 million. Analyst estimates and Simply Wall St extrapolations then project free cash flow through to 2035, starting with negative figures and reaching $533 million in 2030 and $2,657.98 million in 2035, all in $.
Using these cash flow projections, the model arrives at an estimated intrinsic value of about $50.90 per share. Compared with the recent share price of $9.86, the implied discount is 80.6%, which indicates that, based on this DCF view, the stock is treated as significantly undervalued.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests QuantumScape is undervalued by 80.6%. Track this in your watchlist or portfolio, or discover 869 more undervalued stocks based on cash flows.
QS Discounted Cash Flow as at Jan 2026
For companies that are still building towards consistent profitability, price based metrics that rely on earnings are less useful, so investors often look at balance sheet based measures like the price to book, or P/B, ratio instead. It helps you see how the market value compares with the company’s net assets today.
Story Continues
In general, higher growth expectations and lower perceived risk can justify a higher “normal” valuation multiple, while slower growth or higher uncertainty can point to a lower one. That is why it is common to compare a company’s P/B with both its industry and closer peers to get a first sense of how the market is pricing it.
QuantumScape currently trades on a P/B of 4.87x. This sits above the Auto Components industry average P/B of about 1.61x and also above the peer group average of 1.75x. Simply Wall St’s Fair Ratio is a proprietary view of what the P/B might be, after considering factors such as earnings growth, industry, profit margins, market cap and company specific risks. Because it integrates these drivers instead of just lining the stock up against broad averages, it can be a more tailored check of whether the current multiple looks stretched or conservative.
Result: OVERVALUED
NasdaqGS:QS P/B Ratio as at Jan 2026
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Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simply the story you believe about a company, translated into numbers like future revenue, earnings, margins and a fair value that you can compare with today’s share price.
A Narrative links three things in one place: what you think QuantumScape’s business story looks like over time, the financial forecast that follows from that story, and the fair value estimate that arises from those forecasts.
On Simply Wall St’s Community page, used by millions of investors, Narratives are an accessible tool that lets you set your own assumptions, see a fair value, and then quickly compare that to the current price to help you decide whether you see the stock as more attractive, fully priced, or less attractive.
Because Narratives update as new information such as news or earnings is added, different investors can see very different fair values for QuantumScape on the same day. For example, one Narrative might point to a relatively high value per share while another suggests a much lower figure, depending on each author’s expectations for future cash flows and risk.
Do you think there’s more to the story for QuantumScape? Head over to our Community to see what others are saying!
NasdaqGS:QS 1-Year Stock Price Chart
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 QS.
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