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As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it might be a deeply undervalued gem.

The stock this week is:

Stellantis NV (STLA)

Stellantis NV is one of the world’s largest automakers, formed through the merger of Fiat Chrysler and PSA Group. With iconic brands like Jeep, Dodge, Ram, Peugeot, and Citroën under its umbrella, Stellantis is a global player in the consumer vehicles market. The company has been aggressively cutting costs and investing in electrification, positioning itself for a leaner and more sustainable future.

What is IV/P (Intrinsic Value to Price)?

IV/P tells you how much value you’re getting relative to the stock’s price. If it’s greater than 1, the stock might be trading at a discount. If it’s much greater than 1 — it might be a deep value opportunity.

IV/P for Stellantis NV: 1.5

Stellantis currently has an IV/P of 1.5, suggesting its intrinsic value is estimated at 1.5 times its current share price. That means:

For every $1 you invest, you’re potentially getting $1.50 of value.

That’s a healthy margin of safety for value-focused investors.

Supporting Metrics:

• Shareholder Yield: 29.30%
  Stellantis is returning nearly a third of its market cap to shareholders annually through a combination of dividends and aggressive share buybacks. This substantial yield reflects management’s strong capital return discipline and confidence in the company’s long-term strategy.
• Dividend Yield: 18.10%
  Stellantis offers an exceptionally high dividend yield, indicating a generous return of income to shareholders. While such a high yield can sometimes signal risk, in this case it reflects strong cash generation and a shareholder-friendly capital allocation policy.
• Return on Assets (5-Year Average): 3%
  While not spectacular, this figure reflects a cyclical industry where capital intensity is high.

Why Might Stellantis Be Undervalued?

EV Transition in Progress

Stellantis is in the midst of an electrification overhaul, with plans to launch dozens of electric models across its brands. The market may be discounting its ability to execute, giving value investors a potential edge.

Merger Synergies Underrated

Cost-saving synergies from the Fiat Chrysler–PSA merger are still being realized. Over time, this could significantly improve margins and free cash flow.

Valuation Compression in Autos

The entire auto sector has been de-rated amid concerns over cyclical demand and EV disruption. Yet Stellantis trades at a low Acquirer’s Multiple (4.8), suggesting it may be overlooked.

Conclusion:

With an IV/P of 1.5, Stellantis NV (STLA) appears to be trading at a meaningful discount to its intrinsic value. Despite near-term FCF concerns, its high shareholder yield, undervaluation on an enterprise basis, and ongoing transformation into a competitive EV player make it a compelling candidate for deep value investors.

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