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2 Reasons AutoStore Holdings (OB:AUTO) Still Looks Expensive Following Amazon Deal And Buyback

Simply Wall St · 1d ago

AutoStore Holdings (OB:AUTO) has drawn fresh investor attention after a busy 13 August 2026. The company announced a framework supply agreement with Amazon, strong Q2 and half year results, new 2026 guidance, and a share repurchase program.

See our latest analysis for AutoStore Holdings.

The recent Amazon framework agreement, Q2 earnings release, 2026 revenue guidance and the newly announced buyback have all landed as AutoStore Holdings' 1-day share price return of 2.78% sits within a strong 7-day and 30-day share price return of 35.35% and 48.99%. The 1-year total shareholder return of 86.81% contrasts with a 3-year total shareholder return that is down 12.75%, suggesting strong near term momentum after a weaker multi year experience.

If you are looking beyond AutoStore Holdings to see what else is moving in automation, it could be a good time to scan the market for opportunities across 37 robotics and automation stocks.

The recent jump in AutoStore Holdings now sits on top of much stronger reported earnings, fresh guidance and a new buyback. Is this mainly sentiment catching up, or has the business shifted enough to support a higher valuation?

Price-to-Earnings of 36.9x: Is it justified?

AutoStore Holdings last closed at NOK17, and the stock is described as expensive on a P/E of 36.9x compared with both peers and the wider European Machinery industry. That price level asks investors to accept a premium valuation for the earnings the company currently reports.

The P/E multiple compares the share price to earnings per share and is one of the most common ways investors judge how much they are paying for current profits. For a company like AutoStore Holdings in industrial automation, a higher P/E often reflects expectations for continued earnings growth and confidence in the quality of those earnings, rather than just its latest quarterly result.

Here, AutoStore Holdings trades on a P/E of 36.9x, while the European Machinery industry average is 20.8x and the peer average is 22.8x. The stock also sits above an estimated fair P/E of 28.7x, which is a level the market could move toward if sentiment cools or earnings catch up. Taken together, those gaps indicate the market is paying a clear premium for the company’s earnings profile.

Explore the SWS fair ratio for AutoStore Holdings

Result: Price-to-Earnings of 36.9x (OVERVALUED)

However, investors still need to weigh risks such as execution on large contracts like Amazon and any slowdown in demand across core regions for AutoStore Holdings.

Find out about the key risks to this AutoStore Holdings narrative.

Another view on AutoStore Holdings using cash flows

The high P/E suggests AutoStore Holdings trades at a premium, and the SWS DCF model points in a similar direction. At NOK17, the stock sits slightly above an estimated future cash flow value of NOK16.72, which also implies it is expensive. So how much upside is left if expectations soften?

Look into how the SWS DCF model arrives at its fair value.

AUTO Discounted Cash Flow as at Aug 2026
AUTO Discounted Cash Flow as at Aug 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out AutoStore Holdings 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 257 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

The mix of enthusiasm and caution around AutoStore Holdings is clear, so now is a good time to review the data for yourself and move quickly to your own conclusion. To see how the current optimism and concerns compare side by side, take a closer look at the 2 key rewards and 1 important warning sign.

Looking for more investment ideas beyond AutoStore Holdings?

Do not stop with one stock. Use the Simply Wall Street Screener to compare different opportunities side by side and spot ideas that match your style.

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.