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Microvast HoldingsMVST -1.24%67 Degree of Operating Leverage is 11.40 as of Jun. 2026. GuruFocus rates MVST with a GF Score™ of 67/100 and a GF Value™ of $1.53 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,303 Vehicles & Parts companies, Microvast Holdings ranks worse than 84.42% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Microvast Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 11.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Microvast Holdings's Degree of Operating Leverage or its related term are showing as below:
MVST's Degree of Operating Leverage is ranked worse than 84.42% of 1303
companies
in the Vehicles & Parts industry
Industry Median: 1
vs MVST: 11.40
Microvast Holdings (NAS:MVST) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Microvast Holdings Degree of Operating Leverage Related Terms
Microvast Holdings Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Microvast Holdings's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Microvast Holdings Degree of Operating Leverage Chart
MVST vs STRT, MPAA, SRI: Degree of Operating Leverage Comparison
For the Auto Parts subindustry, Microvast Holdings's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Microvast Holdings Degree of Operating Leverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Microvast Holdings's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Microvast Holdings's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 11.40 mean?
Microvast Holdings (MVST) has a Degree of Operating Leverage of 11.40 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Microvast Holdings and its competitors. According to the industry distribution chart, Microvast Holdings ranks #1100 out of 1303 companies in the Vehicles & Parts industry, placing it in the top 84.4%.
Is Microvast Holdings' Degree of Operating Leverage too high?
Microvast Holdings' current Degree of Operating Leverage is 11.40. The Vehicles & Parts industry median Degree of Operating Leverage is 1.00. Microvast Holdings' value of 11.40 is 1040% above this industry median. Based on the distribution chart, Microvast Holdings ranks #1100 out of 1303 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Microvast Holdings has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Microvast Holdings' Degree of Operating Leverage compare to STRT and MPAA?
According to the Vehicles & Parts industry distribution chart, Microvast Holdings ranks #1100 out of 1303 companies for Degree of Operating Leverage. This places Microvast Holdings in the lower half of its industry. The industry median Degree of Operating Leverage is 1.00. Microvast Holdings' value of 11.40 is 1040% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Vehicles & Parts company?
The median Degree of Operating Leverage among Vehicles & Parts companies is 1.00, based on 1,303 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microvast Holdings's current Degree of Operating Leverage of 11.40 is 1040% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Microvast Holdings and its competitors. For the Vehicles & Parts industry, the median Degree of Operating Leverage is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microvast Holdings's current Degree of Operating Leverage is 11.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microvast Holdings stock overvalued right now?
Based on GuruFocus' analysis, Microvast Holdings (MVST) is currently considered Possible Value Trap. The stock's GF Value™ is $1.53, compared to a current price of $0.70 — trading 54.5% below its estimated fair value. The current Degree of Operating Leverage is 11.40 and 1040% above the Vehicles & Parts industry median of 1.00. Microvast Holdings' overall GF Score™ is 67/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Microvast Holdings (MVST), the current Degree of Operating Leverage is 11.40 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Microvast Holdings (MVST) Overvalued in 2026?
Based on GuruFocus' analysis, Microvast Holdings stock appears to be undervalued.
The current stock price of $0.70 is trading 54.5% below its estimated GF Value™ of $1.53.
GuruFocus considers Microvast Holdings to be Possible Value Trap.
Key valuation signals for MVST:
Degree of Operating Leverage: 11.40
GF Value™: $1.53 vs. price of $0.70 (54.5% below fair value)
Industry Position: 1040% above the Vehicles & Parts median (#1100 of 1303)
No single metric tells the full story. See the MVST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Microvast Holdings Inc develops lithium-ion battery technologies focused on high-performance solutions for commercial and industrial electrification. The Company designs, develops, and manufactures battery components and systems for electric commercial vehicles and energy storage systems (ESS), with applications across buses, trucks, port equipment, and mining machinery. It emphasizes innovation in battery design without relying on legacy technologies and supports platforms such as the IVECO eDaily and various bus models. The Company also provides services, repairs, and warranty and extended warranty support. It operates as a single reportable segment, covering design, development, manufacturing, sales, and leasing of battery systems, and generates the majority of its revenue from Europe.
67GF Score
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