Assessing Velo3D (VELO) Valuation After Andretti Performance Partnership Highlights Real World Adoption

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Velo3D (VELO) is drawing fresh attention after announcing a partnership with Andretti Performance. Under this agreement, its metal additive manufacturing technology will supply performance-critical components for the No. 43 Porsche at two 2026 IMSA events.

See our latest analysis for Velo3D.

The partnership news arrives after a sharp 32.5% 7 day share price return. However, the 90 day share price return of 17.26% and year to date share price return of 9.77% remain weak, set against a very large 1 year total shareholder return but deep 3 and 5 year total shareholder return losses. As a result, momentum looks fragile rather than firmly established.

If this kind of high tech manufacturing story interests you, it can be useful to compare Velo3D with other specialists in automation and production, starting with 35 robotics and automation stocks.

With shares recently rallying but longer term returns still weak, the key question is whether Velo3D’s current US$14.96 price and value score of 1 reflect its recent progress and growth in revenue and net income, or if the market is already assuming more growth ahead.

Most Popular Narrative: 40.2% Undervalued

At a last close of $14.96 against a most popular fair value of $25, the current price sits well below what this narrative assigns to Velo3D.

The shift from a one time hardware model toward a recurring platform built around Rapid Production Services, software and services is increasing the share of predictable revenue. Management links this to expanding gross margins and a clearer path toward EBITDA profitability.

Read the complete narrative.

Curious how a hardware heavy printer business gets valued like a higher quality platform play? The core of this narrative is revenue mix, margin lift and future earnings power tied to that shift. Investors may want to examine which assumptions really carry the $25 fair value.

Putting it all together, the most followed narrative applies a discount rate of 8.6% and leans on strong forecast revenue growth and an eventual improvement in profit margins, while also accepting that Velo3D is currently loss making and not expected to turn profitable within three years. The gap between the $14.96 share price and the $25 fair value reflects that set of assumptions rather than any conclusion about what will happen.

Result: Fair Value of $25 (UNDERVALUED)

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

However, this depends on RPS scaling and margin improvement. Prolonged low gross margins or additional equity raises to fund losses could quickly weaken the bullish case.

Story Continues

Find out about the key risks to this Velo3D narrative.

Another View: Pricing Versus Peers

The bullish fair value at $25 paints Velo3D as undervalued, but its current P/S of 8.5x is far above the US Machinery industry at 2.3x and above a fair ratio of 2.6x, even though it sits below a 16.6x peer average. That gap suggests meaningful valuation risk if sentiment cools.

See what the numbers say about this price — find out in our valuation breakdown.NasdaqCM:VELO P/S Ratio as at Apr 2026

Next Steps

With mixed signals on value and momentum, it makes sense to move quickly and look through the underlying numbers yourself before opinions settle. To weigh up both the concerns and the potential upside, start with the 1 key reward and 4 important warning signs.

Ready to scan for more ideas?

If Velo3D has sparked your interest, do not stop here. Use targeted stock lists to spot other opportunities that fit your style before the crowd catches on.

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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 VELO.

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